India INX working on masala bond listing framework
Rupee-denominated masala bonds for Indian corporations currently list on London and Singapore stock exchanges
Singapore: The India International Exchange (India INX) is working on the framework for listing on its platform of rupee-denominated masala bonds for Indian corporations which currently list such financial tools on bourses in London and Singapore, a top company official said.
The India International Exchange is India’s first international stock exchange, opened in January 2017. “We are working on the framework for masala bonds with a range of incentives to make it attractive for Indian companies to launch at our exchange,” said India INX managing director and chief executive officer V. Balasubraminiam.
India INX is also working on lower listing fee to compete with global exchanges, said Balasubraminiam over the weekend at the FIA Asia 2017, an annual derivatives conference in Singapore. He expects a good number of bond listing by India’s public sector units, which are being given permission to raise funds for financing the country’s large scale infrastructure projects.
Once the masala bond list gets underway, India INX will see a big boost in daily average trading volume, he said, setting the target at US$1 billion per day. The bond listing is expected next year. The 11-month old exchange is currently recording average daily trading volume of over $100 million, and is fast expanding.
India INX has 12 contracts, covering copper, crude oil, gold, silver, euro, dollar, rupee and yen combinations. Separately, India INX’s parent bourse, BSE India, will be marketing insurance across India.
It has formed a joint venture with US-based platform E-biz and will use its 1,500 brokers as distribution network offering all insurance products, said Balasubramaniam. The Security and Exchange Board of India (Sebi) has given “no objection certificate” to BSE India while other formalities are being cleared. The insurance offer is expected to commence from the first quarter of next year. PTI