The BSE’s India International Exchange at GIFT city will go live for trading after the festival of ‘Makar Sankranti’ later this month. Initially, at least for the first six months, it will offer only derivative products. Makar Sankranti will be celebrated on January 14.

The India International Exchange, which is a wholly-owned subsidiary of the 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).

“In the first phase, we will start trading only in derivative products (equity, currency and commodities). Later, we shall offer depository receipts and bonds on the India INX platform,” BSE Managing Director and CEO Ashishkumar Chauhan told PTI in an interview.

Phase-2 after 6 months

The second phase is likely to take six months to one year for implementation, he said, adding that depository receipts and bonds would be offered once the required infrastructure for the same is put in place.

“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.

Chauhan also said that a robust risk management system is in place to prevent market manipulation and money laundering.

According to the chief executive of the BSE, while market participants and investors are excited about the international exchange, the norms laid down by SEBI in this regard “are more stringent compared to international markets.”

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