GIFT IFSC business grows by 400% in 6 months: MoS Finance Meghwal

While IFSC units of banks did biz worth $3 bn, insurance firms clocked in $1 bn worth transactions

Visiting the Gujarat International Finance Tec-City (GIFT City), Union Minister of State in Finance and Corporate Affairs and Chairman of the International Financial Services Centre (IFSC) Task Force, Arjun Ram Meghwal said that the project had seen business transactions rise by 400 per cent in six months.

Meghwal had visited GIFT City to interact with the IFSC units and to understand the regulatory and business progress from the entities operating at GIFT IFSC.

The IFSC transactions at GIFT City covering banking, insurance, and capital market services have increased 400 per cent from $1 billion to $4 billion in the past six months. While IFSC units (IBUs) of banks have done business worth $3 billion, insurance companies clocked in $1 billion worth transactions. BSE's international stock exchange within GIFT IFSC has seen single day trading of around $100 million. In addition, 13 new units have recently received approval to set up their base within GIFT IFSC. With this, a total of 100 units now have a presence in GIFT IFSC.

"It is heartening to see that within a short span of time, GIFT IFSC has shown a remarkable growth trajectory and is starting to attract cross-border transactions, which are currently happening from other offshore financial centres. As the Chairman of IFSC Task Force, my endeavour has been to oversee the operationalisation of regulations & policies in order to facilitate the further growth of IFSCs in the country particularly IFSC GIFT, Gandhinagar. In the coming days, we want GIFT IFSC to emerge as a 'price setter' for various global financial products," Meghwal said.

Accompanied by Chairman of GIFT SEZ, Meghwal interacted with 14 IFSC Banking & Insurance Units and 15 Capital Market entities operating at GIFT IFSC. Meghwal also discussed the regulatory clarifications required from the Reserve Bank of India (RBI), Securities and Exchange Board of India (Sebi) and Insurance Regulatory and Development Authority of India (IRDAI) with all the units and provided assurance to take up all the issues in the next IFSC Task Force meeting. India International Exchange along with its members attended the meeting and shared their experience at GIFT IFSC.

Meanwhile, Meghwal assured the IFSC entities to provide all required support for the growth of GIFT City as an International Financial Services Centre.