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Trading in USD-denominated BSE Sensex derivatives at India International Exchange (India INX) --- located in International Financial Services Centre (IFSC) at GIFT City --- was launched on Monday.
The new product will allow global investors to trade and settle BSE Sensex derivatives in US Dollars, facilitating greater participation from international traders and investors.
With a 22 hours trading window, it aims to foster deeper integration of India’s financial market with the global financial system. Gujarat chief minister Bhupendra Patel formally launched the BSE Sensex derivatives contracts.
Sundararaman Ramamurthy, MD & CEO of BSE, said, “BSE is Asia’s first exchange and BSE Sensex is the first market index. The launch of BSE Sensex derivatives at India INX represents a key step in broadening access to India’s benchmark index for global investors. As one of the most recognized indices representing the Indian equity market, BSE Sensex derivatives will offer international investors an efficient avenue to participate in India’s growth story. The introduction of BSE Sensex derivatives marks a significant milestone in strengthening India’s position as a global financial hub.”
Foreign investors including Non-Resident Indians can participate in this new product offering. Highlighting the advantages of trading at India INX, Vijay Krishnamurthy, MD & CEO of India INX, stated: “India INX, India’s first international exchange at GIFT IFSC, continues to expand its product offerings, providing global investors with a wide range of investment opportunities in a regulated, tax-efficient, and technologically advanced environment. With the launch of BSE Sensex derivatives, India INX reinforces its commitment to deepening liquidity, enhancing market access, and positioning GIFT IFSC as a premier global financial centre.”
“The cost of trading is low as Securities Transaction Tax is not applicable. There is no GST or capital gains tax,” Krishnamurthy added. Speaking about the performance of India INX, the official said, “In the last one-and-a-half year or so, our India INX has been pretty dormant. The average of India 50 contracts was around USD 200 million which we have phased out. Now we are starting Sensex 30 monthly futures contract and we are hopeful that this will grow.”
Krishanmurthy said India INX has 61 registered members, of which 44 were active and were all Indian entities. He felt that with the launch of Sensex 30 monthly futures, foreign players too will come.
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