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India's first international stock exchange - India INX

Amitav 
on 15 January 2017

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In general, Stock Exchange is a place where traders can buy or sell the stocks, shares, bonds, securities. The stock exchange plays a major role in the development of economy of a country. It helps to measure and control the growth of a country’s economy. The company must be listed under the exchange to avail the benefit of trading of securities. Stock trading transactions are executed at the stock exchange through the broker.

Some of the roles of the stock exchange are:

  • Raising capital for business
  • Mobilizing savings for investment
  • Facilitating in the growth of company
  • Facilitating in the growth of Economy of Country
  • Creating investment opportunity for investors
  • Maintains stock index as indicators of the general trend in the economy.
  • Regulating stock price Fluctuations

In India we have 2 major stock exchanges (with International Standards) are there namely BSE and NSE along with other stock exchanges. Most of the people are aware about BSE and NSE.

A new stock exchange; India's first international stock exchange - India INX is going to start very recently. Let’s have a look at some of the overview points of India INX.

a. The India INX is located in the country's first International Financial Services Centre (IFSC), which is located in GIFT City.

b. The India INX is a wholly owned subsidiary of BSE Ltd.

c. BSE is a pioneer in the world of financial services and India INX will act as a gateway to raise capital for the country's infrastructure and development needs.

d. As per experts, this unique stock exchange will enable infusion of more FDI in the country, and will enable ‘cross-border investment’, which will in turn help the Govt. to promote growth and development of the society.

e. It would provide cross-border opportunities of investment with a comparatively low cost of transaction in the world's most technologically advanced platform.

f. Both Indians and NRIs, besides International investors can use the services of INX to trade at any time they want, from anywhere.

g. The exchange can trade securities and products other than Indian rupees. The securities and products that could be traded on the India INX are: equity shares of companies incorporated outside India, depository receipts, debt securities, currency and interest rate derivatives, index based derivatives, commodity derivatives and such other securities that may be allowed.

h. Currently it will offer only derivative products – in equity, currency and commodities. In next phase, it shall offer depository receipts and bonds.

i. India INX will be having robust security with international standard and risk management system to protect the customer from the money laundering

j. It will be world’s fastest exchange in terms of response time, with median trade speed of 4 micro-seconds This is better than BSE's domestic exchange at Mumbai, which has a order response time of six microseconds. In comparison, the second fastest international exchange at Singapore has an order response time of 60 microseconds. 

k. India INX Will be open for trading 22 hours a Day. The exchange will open for trading activity daily at 4 am when exchanges in Japan exchange open, and close when US market end. The exchange will work from sunrise to sunset

l. BSE will be investing 500 crores in this International exchange (India INX) over next 3 years

m. Trading at INX will start from January 16th, 2017.

n. Competitive advantage in terms of tax structure and supportive regulatory framework like

  • Benefits in security transaction tax
  • Less commodity transaction tax
  • Benefits in dividend distribution tax
  • Waiver in Long term capital tax

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