The move will enable Indian and foreign issuers to issue masala bonds, Eurobonds and foreign currency bonds from India INX at International Financial Service Centre (IFSC) at Gujarat International Finance Tech (GIFT) for the first time, India INX said in a statement.
India INX had approached the regulator in October for its approval on listing of debt securities.
"The exchange will also be the first India-based exchange to offer clearing and settlement of debt securities through International Central Securities Depositories," India INX said in a statement.
"Earlier this year, it had set up its clearing and settlement capabilities for international securities through clearstream and is already in talks with Euroclear," it added.
With the approval of debt listing, India INX expects a significant increase in its daily trading volumes. Currently, the exchange is clocking an average daily volume of $100 million in trading.
At present, BSE's India INX and the NSE IFSC are the two exchanges at the IFSC. While India INX went live in January, NSE IFSC started trading in June. These bourses offer trading facilities for 22 hours.
India INX currently offers trading in equity derivatives, currency derivatives, index derivatives and commodity derivatives.