A special economic zone in India is emerging as an attractive entry point for foreign financial and institutional companies’ investors and in the next five years it will be without doubt in the top 10 international financial centres in the country, the chairman of the centre has said.
Injeti Srinivas is the chairman of the International Financial Services Centre (IFSC) at GIFT City (Gujarat International Finance Tec-City). He is leading a delegation of senior officials to the US for meetings and roundtable discussions with American and global investors, and banking and educational institutions for business opportunities.
“I think in the next five years, IFSCA will clearly establish itself as a very attractive entry point for India. It will start emerging as an international financial centre for even non-India businesses… In five (years) it will be without doubt in the top 10 international financial centres in terms of volumes,” IFSCA chairman Injeti Srinivas told PTI in an interview as he concluded his five days trip to the US.
During his trips to York and Washington DC, Srinivas and his delegation had a series of meetings with representatives of the top US-based Funds industry, officials from various wings of US Government in particular financial institutions and regulators, World Bank, International Monetary Fund, and leaders from TiE and US India Business Council members.
“Everybody is very interested in India and is wanting to know more about GIFT,” he said.
GIFT IFSC, a Multi Services Special Economic Zone, is headed to be India’s gateway for inbound and outbound requirements of international financial services.
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Through a series of presentations both here and in New York, Srinivas explained how GIFT IFSC is not only a financial centre but also a good landing point from where they can connect with India.
“This visit to the US has been to create greater awareness about the benefits which GIFT-IFSCA offers to global investors and the unique positioning of the GIFT as international jurisdiction within the territory of India, having full convertibility, unified regulator and best in class regulations,” Srinivas told PTI.
In New York, the delegation interacted with the US-based Funds industry on November 8 and presented the business opportunities for Global Funds at GIFT IFSC.
He also participated in a roundtable interaction on ‘ Opportunities for Global Funds at GIFT IFSC’ at the Consulate General of India in New York.
Srinivas and his delegation visited both the New York Sock Exchange and Nasdaq. During a meeting with Lynn Martin, President NYSE and John Tuttle, Vice Chairman NYSE they identified areas for mutual cooperation between GIFT IFSC Exchanges and New York Stock Exchange.
In Washington DC, Srinivas had a meeting with World Bank Group Institutions to discuss Sustainable Finance and other potential business opportunities for IFC and MIGA in GIFT IFSC. During the meeting with representatives of the US Commodity Futures Trading Commission (CFTC), they identified areas for technological cooperation between the two jurisdictions.
Srinivas met Clay Lowery, executive vice president and Matthew Ekberg, Deputy Director of the Institute of International Finance(IIF) during which they discussed the business opportunities available for financial services providers in GIFT IFSC. The visiting delegation also interacted with representatives of over half a dozen universities.
The IFSCA delegation had a meeting with the Department of the Treasury of the US on Inter-Regulatory Cooperation covering both development and regulatory aspects in the areas of sharing best practices, sustainable finance and FinTech.
“Generally, there appears to be a lot of interest in India and within that interest, they are curious to know what GIFT is. Based on the interaction that we had, they seem to be keen to seriously explore the possibilities of having a presence in GIFT,” Srinivas said.
In less than two years, IFSCA has brought about a comprehensive regulatory framework. He said that issues related to the tax regime, operation and procedures have been addressed.
In the last year or so, in some areas, the critical mass has been achieved like the banking sector. “New projects are coming into GIFT. Whether it is funded or whether it is banks, new ECBs etc, everything is getting consolidated into GIFT. To that extent there’s some progress,” he said.
In niche areas like aircraft leasing, all issues have been addressed. “Now it is clear that in every respect we are matching Ireland. And maybe in one or two ways, we are giving more certainty, that is from a tax angle,” he said, adding that all major foreign banks have a presence at GIFT-IFSC. “Generally, things look quite encouraging,” he said.
Responding to a question, Srinivas said a lot of interest in GIFT-IFSCA has been generated and it will lead to further discussions, deliberations and actions that would hopefully result in them having an increased presence at GIFT-IFSCA.
During his meetings and presentations, Srinivas told American companies that GIFT-IFSCA offers them a gate-to-India opportunity and not to route their investment in India through Singapore, Mauritius or Cayman Island. “Don’t come through that, come (to India) directly through GIFT-IFSC,” he argued, stating that modern regulations are in place and tax incentives are comparable and better.
“Some of them seem to be very impressed with some of these developments because they were not aware that all this is happening. So, it has generated that interest. It will lead to them exploring these opportunities in a more structured way and in a deeper manner,” he said.
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“It is a gateway both ways inbound, outbound. But overall, it can also become a destination because international India can get recited here. Companies listing in dollar-denominated securities, etc. That may be 5-10 years down the line. But at this juncture, it’s a gateway,” he said.
“We are working on the literally real-time settlement of dollar… work is in progress. There is a capital market. The clearing corporation, depository everything is there, plus all the concessions which they get under the double taxation avoidance treaty have been hardcoded in the law itself. Because of that, there is 100 per cent tax certainty,” he said.
https://www.financialexpress.com/industry/gift-ifsc-an-attractive-entry-point-for-india-says-its-chairman-srinivas/2809891/
