Merger of India INX - NSE IX, cancelled

The merger between Indian markets INX and NSE-IX, divisions of the BSE and the National Stock Exchange, which operates in the International Financial Services Centre, has been called off more than a year after talks began, reports The Hindu Businessline.

A BSE spokesperson said talks continued for some time but the exchange decided to call off the merger.

K Rajaraman, chairman of the International Financial Services Centers Authority (IFSCA), said: "The BSE board did not agree to the merger. The board of the exchange analyzed the proposal in detail and communicated that it only sees value in investing in the market and growing the products. As long as the stock market is ready to invest, the decision to cancel the merger is fine for us."

Last month, Rajaraman said merger talks between the two exchanges were at an "advanced stage" and NSE IX would continue to operate as a separate international market in GIFT-City after the merger. Gujarat International Finance Tec-City, also referred to as GIFT City, is an under-construction central business district in the Ahmedabad district of Gujarat, India.

• The number of contracts traded on India INX has fallen massively

The average volume of contracts traded daily on the India INX fell to 62,000 in fiscal 2024 from 706,000 in the previous fiscal year. Total turnover at NSE-IX was $734.5 billion in FY2024, up 161 percent from the previous year, according to the source cited.

Industry officials believe that BSE will have to "start from scratch" to turn India INX around, working on product and marketing, and investing heavily in infrastructure and technology. The exchange currently does not have a CEO. Mayank Jain is Chief Financial Officer and Jay Soni is Chief Regulatory Officer.

India INX, a subsidiary of BSE, was the first international stock exchange inaugurated by Prime Minister Narendra Modi at GIFT City in January 2017. National Stock Exchange's wholly owned subsidiary, NSE IX, followed soon after this inauguration and established its started operations in June 2017.