Prime Minister Narendra Modi has formally inaugurated the India International exchange at GIFT city near Gandhinagar in Gujarat. GIFT city and India International Exchange- the International Center of BSE were the dream projects of Prime Minister Narendra Modi.
During the inauguration of India International Exchange, he said that it is a momentous occasion for India’s financial sector. He also said that the exchange inaugurated today will surely set new standards for quality of service and speed of transactions across time zones.
He talked about the vision behind GIFT City and how this world class finance and IT zone has the potential to provide quality services to world. He also elaborated on smart cities project and how they have a pivotal role in creating an India that is confident, prosperous and inclusive.
Our correspondent quoting sources, said that the trading at the new India International Exchange at GIFT city will commence from 16th January. Gujarat International Finance Tec-City known as GIFT city is an under-construction central business district between Ahmedabad and Gandhinagar.
Its main purpose is to provide high quality physical infrastructure including electricity, water, gas, cooling, roads, telecoms and broadband so that finance and tech firms can relocate their operations there. BSE CEO Mr. Ashish Chauhan has said that the India International Exchange will be world’s fastest exchange which will create more than 20 lakh direct and indirect employments during the next 10 years.
Our Ahmedabad correspondent reports that the new international exchange of BSE Ltd will look to provide electronic trading platform for companies that are going multinational. Domestic companies can now raise capital in foreign currency by issuing foreign currency dominated bonds and to trade in such securities.
The ‘India International Exchange’ will trade in all the products like the other exchanges in the world such as Singapore, Hong Kong, London and New York in currency, equities, commodities and derivatives. Derivatives products are not currently available at this exchange since Indian regulations prohibit Indian individuals from speculating or doing derivatives trading in foreign markets as of now.
Currently, Indian companies have to contact foreign exchanges to raise funds in foreign currency. Now this procedure will become less expensive and faster. The companies in India that wants to go global will benefit from this move.