Pivoting to provide a conducive environment for global investors, India’s first international stock exchange platform, India International Exchange (INX), on Monday initiated trading in dollar-denominated Sensex derivatives at GIFT International Financial Services Centre (IFSC). Gujarat chief minister Bhupendra Patel launched the Sensex futures and options contracts with a bell-ringing ceremony.
The launch is expected to facilitate greater participation from international traders and investors and foster deeper integration of India’s financial market with the global financial system with its 22-hour trading window and further offerings.
India INX chief executive and MD Vijay Krishnamurthy said, “India INX continues to expand its product offerings, providing global investors with a wide range of investment opportunities in a regulated, tax-efficient and technologically advanced environment. With the launch of BSE Sensex derivatives, India INX reinforces its commitment to deepening liquidity, enhancing market access, and positioning GIFT IFSC as a premier global financial centre.”
He also highlighted how GIFT City provides significant cost advantages to investors and traders due to zero securities transaction tax (STT), stamp duty and the GST. Additionally, capital gains tax on exchange-traded derivatives is not applicable for non-resident investors in India.
Currently, India INX has 61 members, of which 44 are active. In talks with several international companies, the platform expects the F&O launch to bolster non-resident investor confidence in the Indian financial market without the added complexities of red tape and currency conversion.
BSE chief executive and MD Sundararaman Ramamurthy said, “The introduction of BSE Sensex derivatives marks a significant milestone in strengthening India’s position as a global financial hub. In the last 20 months, you have seen that BSE Sensex derivatives have traded around 40 billion contracts. As one of the most recognized indices representing the Indian equity market, BSE Sensex derivatives will offer international investors an efficient avenue to participate in India’s growth story.”
Patel said GIFT City has become a centre of attraction for fintech worldwide, with more than 450 fintechs operational, making it the country’s fintech hub. He said GIFT International Financial Services Centre and India International Bullion Exchange are successfully operational. Apart from this, banking, insurance, asset management and capital market services are also operated.
The chief minister said the provisions announced in the Union Budget “will result in creating a more robust financial ecosystem in IFSC and a stronger global identity of GIFT City.
» Read More
