GIFT (Gujarat International Finance Tec-City), India’s first International Financial Services Centre officially commenced trading today, Monday 16 January 2017. After years of conceptualization and development, the exchange is now off and running.
Trading will be done in equity, currency and interest rate derivative markets. The first trade which took place was between Globe IFSC and Edelweiss IFSC, a statement by India International Exchange (India INX) said. Mock trading on the exchange started last October, as reported by LeapRate.
India INX will provide a competitive advantage in terms of tax structure and regulatory framework. These include exemptions from security transaction tax, commodity transaction tax and long term capital gain tax waivers as well as waiver from income tax levy for the first five years of operation.
India INX which is owned by Bombay Stock Exchange (BSE), will get some competition soon, as National Stock Exchange of India Ltd. (NSE), is expected to launch its international exchange sometime next week.
India’s Prime Minister Narendra Modi, who pushed the idea of India’s first international financial city starting in 2007, last week inaugurated the international exchange at the International Financial Services Centre (IFSC) in Gujarat International Financial Tech City (GIFT). With world-class infrastructure and facilities, India has attempted to find a new place on the global financial map.