Describing the inauguration of India’s first international exchange at GIFT City in Gujarat as an “important milestone”, Prime Minister Narendra Modi said on Monday that in 10 years time he would like to see GIFT City “become the price setter for at least a few of the largest traded instruments of the world”, be it commodities, currencies or equities. “I am delighted to inaugurate the new India International Exchange (India INX). It is an important milestone not just for GIFT City, but for India in creating 21st century infrastructure. I am told this exchange will trade in equities, commodities and interest derivatives in the first phase.
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Later, it will trade equity instruments of Indian and foreign companies, I am told masala bonds will also be available for trading here. Many more countries from Asia, Africa and Europe should be able to raise funds from this important IFSC (International Financial Services Centre),” said Modi after inaugurating BSE’s international bourse by striking an electronic gong before a selected audience in state capital, Gandhinagar.
Narrating how he had invited BSE during a book launch event in 2013, and a Memorandum of Understanding (MoU) was signed at Vibrant Gujarat summit in 2015, Modi said, “I deliberated a lot with experts of how to make India a thought leader in the field of finance. It was clear that we would need to have the best facilities and ability to transact in all markets of the world. GIFT City was born out of this vision. Our aim was to provide world class facilities to India’s talent in finance and technologies.”
Emphasizing that the new exchange was a “part” of the IFSC at GIFT City a project he conceived in 2007 as the chief minister of Gujarat, Modi while delivering most of his 15-minute-long speech in English said, “My vision for GIFT City is larger. In 10 years from now, GIFT City should become the price-setter for at least few of the largest traded instruments of the world; whether it is commodities, currencies, equities or interest rates or any other financial instrument.”
The country’s only functional IFSC in Gujarat houses several International Banking Units (IBUs) of banks that have already conducted business worth USD 1.5 billion. Stating that IFSC in GIFT City will be able to provide facilities and regulations “comparable” to other leading financial centres of the world, he said, “The concept of IFSC is simple but powerful. It aims to provide on-shore talent with an offshore technological and regulatory framework. This is to enable Indian firms to compete on an equal footing with offshore financial centres.”
Laying bare his pet project before the youth of the country, Modi said, “The international exposure that our youth will be able to get from GIFT City will ensure that more and more of talked is able to join this important field. I urge Indian companies, exchanges and regulators to help create a pool of world-beating finance professionals. They can work out of this great new city and provide services to the entire world. Over the next 10 years, I expect this city to generate several lakh jobs.”
Modi also compared GIFT City with his concept of developing 100 smart cities in India. “You are aware of the importance I attach to the development of smart cities. GIFT City is the first ground up truly smart city in the country. All the 100 smart cities will do well to understand how GIFT City has been able to create its underground infrastructure which can compete with the best in the world,” he added.
BSE’s new bourse, India INX is one of the world’s most advanced technology platforms with a turn-around time of four micro seconds. It will operate for 22 hours a day to allow international investors and nonresident Indians to trade from anywhere across the globe.
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