GIFT City will be price-setter in 10 years: Narendra Modi

India INX is one of world's most advanced technology platforms with turn-around time of 4 micro secs

Sounding the inaugural bell of BSE's first international exchange 'India International Exchange (INX)' at the country's first International Financial Services Centre (IFSC) at the Gujarat International Finance-Tec (GIFT) City in Gandhinagar, Prime Minister Narendra Modi said that in next 10 years the IFSC will be a price setter for various instruments. 

"My vision for GIFT City is larger. In next 10 years from now, I see GIFT City become a price setter for at least a few of the largest traded instruments in the world, whether in commodities, currencies, equities, interest rates derivatives or any other financial instruments. Over the next 10 years I expect this city to generate several lakhs of jobs," said Modi.

Modi declared India INX open by sounding a digital bell at GIFT City. Terming the event as a momentous occasion for India's financial sector, Modi said that the IFSC will be able to provide facilities "comparable to any other leading financial services centres in the world".

Operating from the first floor of the 16-storey 'Hiranandani Signature' commercial, India INX will be the fastest international exchange in the world in terms of order response time, with a median trade speed of four microseconds. This, according to BSE managing director and chief executive officer Ashish Kumar Chauhan, is better than its own domestic exchange at Mumbai, which has a order response time of six microseconds. In 2015, BSE had become the fastest exchange in the world with the six microseconds median trade speed. In comparison, the second fastest international exchange at Singapore has an order response time of 60 microseconds. 

What's more, India INX at IFSC will be open for trading for 22 hours every day. The exchange will open for trading activity daily at 4 am when exchanges in Japan open, and close at 2 am when exchanges in the US close. 

Modi said that India was in a better time zone between the eastern and western markets and through the international exchange, it could provide services during day and night. 

In the next three years, BSE will be investing around Rs 500 crore in the international exchange. India INX will begin operations with 100 employees, most of whom have relocated from Mumbai, apart from local and foreign personnel. In addition, about 100 brokers have applied to shift to IFSC, of which 50 have already taken space at Hiranandani Signature, which has so far seen 30 per cent of the 4.2 million sq ft of commercial space being signed up including BSE’s India INX, Kotak Mahindra Bank and other brokerages. 

It needs to be mentioned here that financial institutions operating out of the temporary structure within IFSC have so far conducted business transactions worth $1 billion. 

In the first phase, the IFSC will provide services in equity, commodities, currencies, and interest rates derivatives, in later phase, it will be offering other financial instruments including masala bonds. 

Meanwhile, according to Chauhan, the GIFT City will help bring investments worth $ 1-3 trillion in the next 10-15 years.