Terming it as momentous occasion for the country's financial sector, Prime Minister Narendra Modi on Monday inaugurated the India International Exchange (INX) located at the International Financial Services Centre ,GIFT City in Gujarat.
Inauguration of India International Exchange is a momentous occasion for India's financial sector," said Modi, adding that the new exchange will truly lay new standards for quality of service and speed of transactions across time zones. Exchanges in the Gujarat International Financial Tech City (GIFT) will become price-setters in at least some of the world’s largest traded securities, said Prime Minister Narendra Modi. He was speaking at the inauguration of BSE’s wholly-owned unit India International Exchange (INX) at GIFT on Monday.
“My vision is that in 10 years from now, GIFT City should become the price-setter for at least a few of the largest traded instruments in the world, whether in commodities, currencies, equities, interest rates or any other financial instrument,” said Modi. The PM also said “This has been done taking a view to permit Indian firms to compete on an equal footing with offshore financial centres,” Modi said. “There has been criticism that a lot of trading in Indian financial instruments is taking place abroad. GIFT City will be able to mitigate such criticism,” While calling it a key milestone in establishing India as a financial leader, Modi said the concept of GIFT was simple yet powerful. It will enable Indian firms to compete on a level footing with offshore counterparts.
The trading operations are scheduled to start from January 16 albeit the international exchange was inaugurated on January 9. India INX is one of the world's most advanced technology platforms with a turn-around time of 4 micro seconds. It will operate for 22 hours a day to allow international investors and Non Residents Indians to trade from anywhere across the globe," the exchange said in a statement.
The exchange can deal securities and products other than Indian rupees. Some of the securities and products that could be traded on the India INX are: equity shares of companies incorporated outside India, depository receipts, debt securities, currency and interest rate derivatives, index based derivatives, commodity derivatives and such other securities that may be enabled. With a speed of 6 microseconds – the fastest in the world, the exchange will offer the same T7 state art trading platform used by BSE.
GIFT was envisaged in 2007. Six years later, Modi, who was then serving as the chief minister of Gujarat, invited BSE to set up an international exchange at GIFT City. In 2015, BSE signed a memorandum of understanding with GIFT authorities to set up the exchange and now today it has become operational. India is in magnificent time zone between east and west and GIFT city can provide facility through day and night. India International Exchange will mark new standards of quality of service and speed transactions. This exchange will start with Japanese market’s start and close when US markets are closed. It will work for 22 hours.
Creating an offshore centre in a country like India which is so large constitutes a regulatory challenge. I am glad that ministry of finance, revenue, RBI and SEBI have found solutions to such regulatory issues,” Modi said.The Prime Minister also said that India needs to generate 30 crore new jobs in the next two decades.