The India International Exchange, which is a wholly-owned subsidiary of top domestic bourse BSE, will be inaugurated by Prime Minister Narendra Modi on January 9 at Gujarat International Finance Tec (GIFT) city -- the country's first International Financial Services Centre (IFSC).
The bourse is expected to begin trading activities post Makar Sankranti, which will be observed on January 14.
"In the first phase, we will start trading only in derivative products (in equity, currency and commodities). Later on, we shall offer depository receipts and bonds on the India INX platform," BSE Managing Director and CEO Ashishkumar Chauhan told PTI in an interview.
"It will take us some time to understand and also set up the infrastructure as well as set up a new depository or tie-up with an international depository. Besides, a regulatory structure has to be enabled for this to happen," he said.
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Chauhan also said that a robust risk management system is in place to prevent market manipulation and money laundering.
According to the BSE chief executive, while market participants and investors are excited about the international exchange, the Sebi norms "are more stringent compared to international markets".
"But, this is important as India does not want to become a haven for tax evasion and market manipulation," he noted.
As many as 250 trading members, including commodity brokers as well as brokers settled overseas, have expressed interest to function at India INX.
"Many see it as a good opportunity with low risks to expand business by accessing international clients such as NRIs," Chauhan said adding that no complaints have been raised by the market participants yet with regard to procedures.
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