PM Modi has inaugurated India’s first ever International Stock Exchange at Gujarat International Financial Tec (GIFT) City, which is also India’s first smart city built from scratch.
A wholly owned subsidiary of Bombay Stock Exchange (BSE), India International Exchange or INX will allow traders to buy and sell stocks for 22 hours in a day. Following the International trading timings, this unique stock exchange will start when trading at Japanese stock exchange starts, and will end when US stock exchange stops.
Thus, after a gap of just 2 hours, the trader can resume their stock trade, and literally push it to an never-ending journey.
While inaugurating this stock exchange PM Modi said, “The exchange will create new standards in quality of service and speed of transactions in different time zones. I have been told that the international exchange would work for 22 hours a day. It will start when Japan exchanges begin and close when US markets end. The exchange will work from sunrise to sunset”
Trading at INX will start from January 16th, 2017.
India’s 1st International Stock Exchange: Benefits
Both Indians and NRIs, besides International investors can use the services of INX to trade at anytime they want, from anywhere.
As of now, stock market investors can trade equity derivatives, currency derivatives, commodity derivatives including Index and Stocks at INX. Gradually, depository receipts and bonds would also be included, once proper infrastructure is in place
As per experts, this unique stock exchange will enable infusion of more FDI in the country, and will enable ‘cross-border investment’, which will inturn help the Govt. to promote growth and development of the society.
BSE has also pledged to infuse Rs 500 crore as an initial capital for INX, to kickstart its operations.
Features of INX Exchange
- It will be world’s fastest exchange in terms of response time, with median trade speed of 4 micro-seconds
- Will be open for trading 22 hours a Day
- BSE will be investing 500 crore in this exchange over next 3 years
- INX Exchange will have 100 employees
- INX will trade in equities and other related products of companies incorporated outside India
- Currently it will offer derivative products in equity, currency and commodities. It will then expand to Depository receipts and bonds.
- INX has security in line with International standards
Tax Benefits For Investments at INX
Interestingly, Govt. has announced several tax benefits for those who start investing via INX. Some of them include:
- Benefits in security transaction tax
- Less commodity transaction tax
- Benefits in dividend distribution tax
- Waiver in Long term capital tax
- And, no income tax for a fixed period of time
At the time of writing, around 250 investors (from India and abroad) besides leading financial institutions have expressed their desire to use INX for their investment needs.
As of March, 2016, Bombay Stock Exchange had a market cap of $1.43 trillion, and volume of $93 billion (as of 2014). Total 5749 listings are already included there.