Prime Minister Narendra Modi today inaugurated the India International Exchange (INX), a 100 per cent subsidiary of the Bombay Stock Exchange (BSE), at International Financial Service Centre (IFSC) in Gujarat International Finance Tec-city (GIFT) in Gandhinagar. The INX will be the world's fastest exchange that would be able to execute a deal in four microseconds. The trading will start on January 16 with equity derivatives. There are also plans to start commodity futures, currency futures and interest-rates futures. What Hong Kong is to China, GIFT will be to India. We will spend Rs 500 crore in the next three years in the INX," says Chauhan, who feels that in the next 10-15 years, $1-3 trillion investment can come into India through the INX, which will conduct trading for 22 hours a day.
"Inauguration of India International Exchange is a momentous occasion for India's financial sector," said Modi, adding that the new exchange will surely set new standards for quality of service and speed of transactions across time zones. He said that with a combination of talent and technology, Indian companies can compete with offshore financial centres.
Interestingly, the exchange been set up in just 45 days. Even more interesting is the fact that till 12 months ago, IFSC didn't even have any building to start any office. So far, the only structure that has come up in the free tax zone is Hiranandani Signature, the 16-storey building that houses the INX.
"It's only because of the prime minister that in 12 months a 16-storey building with all approvals and infrastructure is up and running," says Niranjan Hiranandani, Founder and Managing Director, Hiranandani Group of Companies.
Last November, when Hiranandani took the land at GIFT, there were no approvals in place. There was also no clarity on taxation and other things from either the government or the Reserve Bank of India or the Securities and Exchange Board of India. "Initially, I thought about developing the land in two years, but the prime minister wanted the building to be ready before Vibrant Gujarat. I was told to give in writing the problems why the building couldn't be ready in one year. Within no time, all approvals came. Thereafter, I had no option but to deliver," says Hiranandani, who has spent Rs 150-200 crore on the project.
"In fact, 45 days ago, no one thought we could complete the building on time. Even the BSE, which came in two months back, didn't think we could complete the building on time. But in 45 days, the exchange is ready to deliver," he says.
Hiranandani Signature has over 4.2 million square feet space; each floor has 28,000 square feet space that Hiranandani has leased for Rs 55 per square feet. Apart from the BSE and BSE brokers, who have occupied first and second floors, Kotak Mahindra Bank is said to have taken the entire 10th floor and is in talks to take the 11th floor too. Yes Bank, which gave a loan to Hiranandani for the building, will occupy half the 9th floor.
Ashish Chauhan, CEO, BSE, has also been working overtime to ensure the project is a success. He has been visiting GIFT City every weekend. Since last Wednesday, he has been staying at Gandhinagar for last-minute finishes. "What Hong Kong is to China, GIFT will be to India. We will spend Rs 500 crore in the next three years in the INX," says Chauhan, who feels that in the next 10-15 years, $1-3 trillion investment can come into India through the INX, which will conduct trading for 22 hours a day.
The INX will be the world's fastest exchange that would be able to execute a deal in four microseconds. The trading will start on January 16 with equity derivatives. There are also plans to start commodity futures, currency futures and interest-rates futures.
While the start has been good, no one knows if it's going to be a success.
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