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The BSE and the National Stock Exchange have launched Rupee-Dollar futures and options contracts on their international exchange platforms based at the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City).
Finance Minister Nirmala Sitharaman inaugurated the launch of derivative products on both the INX (BSE arm) and the NSE IFSC platforms digitally from New Delhi.
Ashishkumar Chauhan, Chairman, India INX, said, trading volumes on India INX have been growing phenomenally ever since the exchange commenced trading activities in January 2017. “With a cumulative trading volume of $822 billion since launch and international debt MTN (medium term note) programme of about $48 billion, India’s INR-USD derivative is expected to attract more participants to the IFSC and make India INX a leading centre for raising capital for issuers across the globe,” he said.
Vibrant forex market
Vikram Limaye, MD and CEO, NSE, said, “Introduction of rupee derivatives in IFSC is crucial for the development of Indian financial markets. Rupee derivatives in IFSC would help in creating vibrant forex market in India. This will also play an important role to bring offshore rupee market back to India and strengthen price discovery in Indian markets.’’
The major participants in rupee derivatives contracts at NSE IFSC are foreign portfolio investors, corporations, trading members of IFSC’s banking units, global banks and custodian and non-resident Indians.
IFSC platform offers access for the international investors and non-resident participants who currently participate in rupee trading in various offshore markets and should offer such participants, an additional trading venue at par with the other offshore market platforms. Long trading hours and USD settlement at IFSC would also help to improve access for overseas participants. This should in turn help these participants in hedging their rupee exposures effectively at IFSC. INR-USD futures and options contract will also be available for 22 hours to all international participants across the globe.
Tapan Ray, MD and Group CEO of GIFT City, said, “This new reform will enable India to become a net exporter of financial services, being in sync with the vision of GIFT City as a platform for onshore financial services business, presently being lost to other financial centres across the world.”
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