The India International Exchange (IFSC) Limited (India INX), India’s first international exchange based in the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City) witnessed an all-time high turnover of over USD 6.67 bn (INR 48,913 crores approx.) on its derivative segment in daily trading turnover on October 20, 2020.
Trading volume on the BSE’s India International Exchange has been growing exponentially ever since it commenced trading activities on January 16, 2017. Its average daily trading volume has crossed over USD 4.15 bn (INR 30,429 crores approx.) mark in the month of Oct 2020, a 21.87% growth in average daily trading volumes as compared to previous month. The cumulative trading turnover has crossed the USD 1.19 trillion (INR 86,85,203 crores) mark driven by a substantial jump in market participation.
On May 08, 2020, Hon’ble Finance Minister Smt. Nirmala Sitharaman inaugurated Rupee Dollar Derivatives which has seen a cumulative turnover of USD 10 bn (INR 75,415 crores) till October 19, 2020 and market share of 78% in GIFT IFSC. This increased trading activity validates the new products and initiatives taken by India INX and reflects growing interest in the IFSC among the broking fraternity. Even during the Covid-19 pandemic and lockdown, India INX was operational for 22 hours nonstop.
India INX has maintained its leadership as the No. 1 exchange in IFSC GIFT City and accounts for overall market share of around 80% for September 2020. The exchange provides a common platform for all asset classes – equities, currencies, commodities. India INX is one of the world’s most advanced technology platforms with a turn-around time of 4 micro seconds and operates for 22 hours a day to allow international investors to trade from anywhere across the globe.
India INX offers a diversified portfolio of products and technology services at a cost which is more competitive to Indian exchanges; as well as other global exchanges like those in Hong Kong Singapore, Dubai, London and New York.
The exchange being located in IFSC, GIFT City, provides competitive advantage in terms of tax structure and supportive regulatory framework. These include benefits in security transaction tax, commodity transaction tax, dividend distribution tax and long-term capital gain tax waivers and no income tax.