India INX to open the country for international investment

Historically, India entered the international trading world because of its spices. The Spice Route was established thanks to international interest in the products that India had to offer at the time. While trading in cinnamon, cardamom, ginger and pepper, India became richer. 

Spices were our old currency. However, in the 21st century India’s power to spend, consume and invest is key to tapping into the world market. So far, the focus has always been on foreign investments coming into India but not the other way round lisinopril hctz.

An Indian living, working and earning in India could not invest systematically in foreign companies. The average Indian consumer is surrounded with all things global—Facebook, WhatsApp, Microsoft—you name a company and there’s bound to be an international link to it.

However, for Indian nationals residing in India investing internationally is an unchartered territory. With the start of an International Stock Exchange in India, the Indian investor can truly become a global player.

The Indian investor is aware and knowledgable about not only domestic companies but also uses international products and services. Thus, she or he can make informed decisions about which global companies they want to invest in.

India INX, a BSE-owned stock exchange opened in GIFT-City in Gandhinagar, Gujarat this month. Trading  began on India’s first International Stock Exchange on Jan. 16. The first phase of INX enables people to trade and invest in equity derivatives. Currency and commodity derivatives trading is on its way. And, INX will also offer depository receipts and bonds in the upcoming phases.

More than 250 trading members have expressed an interest in conducting business from India INX. The location of India INX in the International Financial Services Centre (IFSC) which is a designated Special Economic Zone gives the BSE-owned exchange an added advantage. Companies based out of IFSC get benefits in Securities Transaction Tax, Commodity Transaction Tax, Dividend Transaction Tax and also get other tax waivers including no income tax for a certain period of time. 

India INX is also technological advanced with a processing time of 4 microsecond. To put this into perspective, BSE takes about 6 microseconds. With the start of India INX, India is now at par with Dubai and Hong Kong in being able to boast about an international stock exchange on its soil. 

Going forward, it should be interesting to see how this impacts the behaviour of a common Indian investor. Moreover, the GIFT-IFSC is likely to see growth in the number of companies including brokerage firms who would want capitalise on the kinds of benefits available from SEZs. 

An average Indian consumer is surrounded with foreign products and services. Then, the question becomes —why not give that consumer access to invest in the companies that she/he interacts with on a daily basis? 

  • Vivek Gadodia

    This is a great start!! What are the international products available to us as Indian investors : viz. Stocks, commodities, FX ? I believe different products are going to made available in phases

    • Nipul Jain

      As per above blog she mentioned only Equity derivatives is currently trad-able on INDIA INX. The once you mentioned viz. Pure Equity,Commodities & FX should be rolled out in other phases on the project.

      Regards,
      Nipul

      • Vivek Gadodia

        Had missed it. Thanks for highlighting Nipul

  • Pratik Thakkar

    So is it possible to trade on India INX via Upstox?

    • Vallari Gupte

      Thanks Prateek for the question! As of now you cannot trade on India INX with Upstox. However, I think this is a start of something exciting and new for investors in our country and Upstox will continue to keep track of the international stock exchange’s performance and results.

  • Bonny Babu

    Hi , could you pls advsie –how can I satrt tarding India INX ?
    Which are the reputed brokers having facility to trade INX now ?