India International exchange at GIFT city will be one of the new development that will be liked by none other than PM Narendra Modi as GIFT city is touted to be one of his pet projects.
Prime Minister Narendra Modi will inaugurate the new exchange on January 9, 2016.
‘Trading at the new India International Exchange at GIFT city in Gandhinagar is set to start on January 16’, said BSE chief executive officer and managing director Ashish Chauhan on January 6, 2017.
Gujarat International Finance Tec-City or GIFT is an under-construction central business district between Ahmedabad and Gandhinagar in the Indian state of Gujarat.
Its main purpose is to provide high quality physical infrastructure (electricity, water, gas, district cooling, roads, telecoms and broadband), so that finance and tech firms can relocate their operations there from Mumbai, Bangalore, Gurgaon etc. where infrastructure is either inadequate or very expensive.
Prime Minister is in the Gujrat to attend the eighth edition of the Vibrant Gujarat Global Summit 2017.
New international exchange, 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, New York in currency, equities, commodities 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 if any Indian company wants to raise funds in foreign currency, then It need to contact foreign exchanges.
Now this procedure will become inexpensive and faster.
The companies in India that wants to go global will benefit from this move.