Gandhinagar: Exchanges in the Gujarat International Financial Tech City (GIFT) will become price-setters in at least some of the world’s largest traded securities, said Prime Minister Narendra Modi. He was speaking at the inauguration of BSE’s wholly-owned unit India International Exchange (INX) at GIFT on Monday.

“My vision is that in 10 years from now, GIFT City should become the price-setter for at least a few of the largest traded instruments in the world, whether in commodities, currencies, equities, interest rates or any other financial instrument," said Modi.

Trading at INX will start on 16 January.

According to Modi, India has faced criticism in the past that it was no longer a price-setter even in local securities and products and that largely the market relies on foreign investors.

“GIFT City will be able to mitigate many of these criticisms," said Modi.

While calling it an important milestone in establishing India as a financial leader, Modi said the concept of GIFT was simple yet powerful. It will enable Indian firms to compete on a level footing with offshore counterparts, he said.

An international exchange targeting foreign investors is India’s attempt to take a share of the $48 billion worth of offshore trade and business activities from Singapore, Dubai and Hong Kong, which already have such exchanges in place.

The INX will be open for 22 hours a day, starting when the Japanese market opens and shutting when the US market closes.

GIFT was envisioned in 2007. Six years later, Modi, who was then serving as the chief minister of Gujarat, invited BSE to set up an international exchange at GIFT City. In 2015, BSE signed a memorandum of understanding with GIFT authorities to set up the exchange.

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Meanwhile, BSE has deputed its chief business officer V. Balasubramanian to head INX. Balasubramanian, who will be managing director and chief operating officer of INX, will be joined by 70-80 officials from Mumbai, BSE managing director and chief executive officer Ashish Chauhan said. Chauhan will be chairman of the INX board, which will also include former Reserve Bank of India deputy governor Anand Sinha, and economist Ajit Ranade.

The Securities and Exchange Board of India (Sebi) has allowed exchanges to launch a vast range of products such as equity derivatives, currency and commodities, barring agricultural futures. Exchanges have freedom to decide on trading hours; cross-margining between various asset classes is allowed.

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