India International Exchange To Go Live On January 16 With New ‘Sensex 50’ Index
The exchange will trade for 22 hours a day and will allow FPIs and NRIs to trade on listed products.
The country's oldest stock exchange, the Bombay Stock Exchange, will start trading single-stock and equity-index futures at the India International Exchange or INDIA INX on January 16, 2017, an official at the exchange told BloombergQuint. It will add gold, silver, copper, oil and the rupee “soon”, he added.
The BSE has set up the this international exchange at Gujarat International Finance-Tec City based in Gandhinagar, Gujarat. The exchange was inaugurated by the Prime Minister, Narendra Modi on the eve of the 8th Vibrant Gujarat Summit.
“The exchange will reclaim some lost market share to equity-futures in Singapore, currency derivatives in Dubai and structured products in Hong Kong,” Bombay Stock Exchange Chief Executive Officer Ashishkumar Chauhan said in an interview to BloombergQuint.
India INX has been set up as a wholly owned subsidiary of the BSE. The International exchange will trade for 22 hours a day and will allow foreign investors and non-resident Indians to trade on the products listed on the exchange. The exchange will start its trading when the Tokyo market opens and end with the closing of the U.S. stock exchanges, the official quoted above said.
India INX will start with equity derivative products, commodity derivatives and eventually allow listing of depository receipts on its platform. It will start trading in Sensex 50, an index derivative, as the first product. Nearly 100 brokers comprising of foreign and domestic have sought permission from regulators to set up offices inside the GIFT IFC. Around 40 brokers have received permission so far, the BSE official said.
The BSE has sought market regulator SEBI’s nod to offer all products available in global exchanges like Hong Kong, Singapore and Dubai.
Since the exchange is based out-of GIFT IFC, trading currency would be the dollar. BSE hopes to bring in more Indian products on INDIAINX, going forward.
The exchange has already received the final nod for its initial public offer from SEBI, and is expected to launch its maiden issue by the end of January.
Built over an area of 880 acres, the Gujarat International Finance-Tec City is envisaged as an international hub for stock market trade. It's an under construction finance hub between Ahmedabad and Gandhinagar.