India International Exchange, India INX: Everything you wanted to know - chaprama | Insights from the world of Technology and Lifestyle


Wednesday, January 11, 2017

India International Exchange, India INX: Everything you wanted to know

Asia's oldest stock exchange, Bombay Stock Exchange (BSE) launched its first ever International Stock Exchange dubbed as India International Exchange (India INX) at Gujarat International Finance-Tec (GIFT) city. The exchange was officially launched by Prime Minister of India, Narendra Modi on the occasion of 8th Vibrant Gujarat Summit.

The India INX will help us compete with international finance service centers like Hong kong, New York, Dubai, and Singapore. India INX is located in the International Finance Service Center in GIFT city, Gujarat

india inx

Unique features of India INX:

- The India INX is the wholly owned subsidiary of Bombay Stock Exchange (BSE)

- India INX will trade for 22 hours in a day. The trading begins at 4 AM when Japan's Nikkei begins and closes at 2 AM when New York Stock Exchange (Nasdaq) closes. This may be extended to 23 hours a day in future.

- BSE will be investing around Rs 500 crores in coming three years on India INX

- India INX is all set to begin operating from January 16, 2017

- India INX will trade single-stock and equity-index futures for now and will add Gold, Silver, Copper, Oil and Rupee to the trading portfolio sooner

- India INX will first start trading in Sensex-50 which is an index derivative

- India INX will provide an electronic platform for facilitating trading, clearing and settlement of the widest range of global benchmark products across all major asset classes, including securities, equity derivatives, precious metals, base metals, energy, agricultural commodities, interest rates, currencies etc., subject to necessary approvals and operating guidelines from regulators.

- India INX is also offering incentives like NO Security Transaction tax,  NO Commodity Transaction Tax, NO Stamp Duty, NO Service Tax, NO Long Term Capital Gain, NO Dividend Distribution Tax, NO Income Tax for first five years

- Indian individuals are currently not allowed to trade in the India INX

Foreign individuals, foreign trusts, and  foreign institutional investors are allowed to trade in the India INX

- Trading currency is dollar currently.

- India INX is the world's fastest exchange with order response time of 4 microseconds. BSE has order response time of 6 microseconds. World's second largest international exchange, Singapore has order response time of 60 microseconds

- Headed by V.Balasubramanian who is the chief business officer at BSE

-  BSE has currently received 90-100 applications from brokerage firms to shift to GIFT city of which 50 have already registered.

- GIFT city is built in 880 acres in Gujarat between Ahmedabad and Gandhinagar

- GIFT city is the international hub for stock market trading

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