Looking forward to more product approvals for trade on exchange: V Balasubramanian, INX

Bombay Stock Exchange promoted exchange 'India International Exchange' completed two years on January 9. In the past two years, the exchange has crossed one billion trade in derivative segment and launched many products.

V Balasubramanian, Managing Director of INX, is hopeful about the future, especially after unified regulator for Gift City. However, as of now, INX has reached more than 30 percent of volume of total trade of Nifty on Singapore Exchange (SGX).

In an interaction with Moneycontrol, Balasubramanianian spoke about the achievements of the exchange.

"Our aim is to become the best offshore exchange platform for India and we have already reached 30 percent market share in India 50 index futures and options volume as compared to other offshore markets. We continue to be the dominant IFSC Exchange in gift city with market share of more than 75 percent in derivatives trading and 80 per cent in debt listing. On Global Securities Market Listing platform, we have achieved 100 percent market share in the last quarter and more issuers are choosing India INX as the primary exchange for listing their international bond offerings," he said.

In last two years, INX alone traded more than one billion dollar average trading volume in derivative segment. He said that total trading turnover has crossed $161.4 billion dollar and on September 26 2018, exchange has crossed daily trade volume over $1.77 billion and on an average also daily turnover more than $1 billion. And maximum trade happens on equity index options $58.3 billion and commodity futures which trades more than $56.3 billion. On the exchange debt securities listed worth of $11.6 billion via eight debt securities listed in last two years.

Balasubramanian also spoke about debt securities.

"On this exchange (INX), three masala bonds and two green bonds are listed. Eight Medium term notes (MTN) worth $38.8 billion are also issued. State Bank of India, Yes Bank, Power Finance Corporation, Rural Electrification Corporation, EXIM Bank, NTPC, and NHAI  have used MTN facility on this exchange," he said.

Speaking about the growth outlook, he said: "Reserve Bank of India is yet to approve USD/INR convertibility in the Gift City. Once we get that, then actual growth will be seen in Gift City. RBI has not given clarity on Non Resident Indian participation in Gift City. NRIs pump large amount of money in domestic equity market and if they invest in Gift City, then liquidity will increase. We look forward to continued support from regulators and hope for higher growth and momentum in IFSC in 2019. We are also looking forward to more product approvals and broader range of participants allowed in IFSC."
On the question of unified regulator for Gift City, Balasubramanian said that the government is in the last lap of clearing the framework for unified regulator and added that there is huge scope of IFSC mechanism in the country.