11.4.15

GIFT gets going

The Central government has paved the way for financial institutions to set up international operations in Gujarat's GIFT City by notifying the area as an International Financial Services Centre (IFSC) and unveiling the norms for the financial hub.
For want of IFSC notification, GIFT City had been functioning as a multi-services special economic zone.
With finance minister Arun Jaitley unveiling the norms at Mahatma Mandir, Gandhinagar on Friday , GIFT can now accept applications from banks to set up IFSC Banking Units (IBUs) that are similar to overseas branches. Stock exchanges, brokerage firms, insurance companies, intermediaries and other financial services players can also set up international operations at the 28 million sq ft GIFT IFSC. GIFT City spans 62 million sq ft area.
Kotak Mahindra Bank was the first off the block to sign a memorandum of understanding to set up an IBU in GIFT City.India's top two stock exchanges -BSE and NSE -are also setting up facilities in GIFT City.
GIFT City is a project championed by Narendra Modi when he was the Gujarat CM.
India is losing revenue of $50 billion annually to financial centres in Dubai, Singapore, and Malaysia. GIFT IFSC is expected to stop that leakage towards these centres. When fully operational, it is expected to provide employment to around 2 lakh professionals.
“GIFT IFSC will now be an entrepreneurial township, with banks, insurance agencies, financing agencies, and back-office services with professionally managed modern facilities,“ Jaitley said. Impressed with the development of GIFT City consistent with international standards, Jaitley said the city was a role model for creation of smart cities.
“I will ask other states to emulate the GIFT City project so that we can build 100 smart cities.“ He blamed the previous UPA government for the delay of three years in executing the project. “I have no doubt that GIFT City will be a great success,“ Jaitley said.

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