GIFT City to deepen India's integration with global finance
SGX Nifty) moved to the Gujarat International Finance Tec-City (GIFT) International Financial Services Centres (IFSC) in its new avatar — GIFT Nifty. Under this arrangement, trades will be routed to NSE International Exchange (NSE IX) GIFT City from the SGX for trading and execution.
This is a big step forward in GIFT City's journey to emerge as a leading international financial service centre and will significantly increase trading volumes and liquidity in GIFT, attracting more investors, traders, and market intermediaries. The story of GIFT City has just started unfolding.
With increased focus from the government, GIFT has successfully attracted the international community's attention within a short period with a banking asset book of $35 billion-plus. Similarly, the insurance sector has seen the sum insured crossing $30 billion, and we have seen a sharp increase in the number of registered alternative investment funds (AIFs) and fund houses.
International Financial Services Centres Authority (IFSC), the unified regulator for IFSC, has adopted principle-based regulations and has a consultative approach to regulation, further enhancing its attractiveness for financial sector participants. GIFT City started liberalising capital and liquidity requirements a few years ago, and starting with Standard Chartered in 2020, the last three years have seen eight more international banks establishing banking units here.
As an offshore jurisdiction within India, GIFT can offer financial services within a liberalised foreign exchange regime. This has been done with a vision to bring to the Indian shores those financial products/services relating to India that are currently carried out outside India by overseas financial institutions.
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