GIFT IFSC: With a great party, you need great dancers too!
financial hub with an excellent regulatory framework, world-class infrastructure, proactive regulator, and key trading platforms such as exchanges and clearing corporations. However, the next step is to focus on increasing the level of financial activity to unlock its full potential. This very issue was discussed at a recently held primary markets conference at the IFSC.
The Role of Government and Regulators in Market Development
Building a thriving financial market and regulatory framework requires significant support from the government and regulators initially. Historically, special policies and incentives have played a crucial role in market growth. For instance, when SEBI was established in 1992, the Indian capital market was valued at ₹1 lakh crore. Over 32 years, it has grown by 400 times. Similarly, for the IFSC to emerge as a global financial hub, innovative schemes and policies from the government are essential.
One example is the issuance of foreign currency bonds. A better tax regime, such as reduced withholding tax, has already helped attract bond issuers to the IFSC, leading to a notable growth in the bond market. Moving forward, IFSC should aim to attract foreign companies to issue bonds through its framework. This would enable global companies to use the IFSC platform to raise capital, mirroring the vision of «Make in India» but for global financial services.
Suggestions from the Primary Markets Conference
Stock Trading
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By — The Economic
