Bank of America, Citi Bank may set up offshore branches in GIFT City: AK Jha
NEW DELHI: Bank of America, Citi Bank and HSBC are interested in setting up their offshore branches in the country’s first international financial services centre (IFC) in Gujarat, said AK Jha, CEO of GIFT City to ET Now.
“All Indian banks that have offshore branches are willing to set up shops here. Besides many of the foreign banks which are established in India, Bank of America, Citi Bank, HSBC are also willing to set up their offshore branches in IFC. They have a great business opportunity in this,” Jha told ET Now.
According to Jha an MOU has already been signed with BSE and NSE for setting up their international exchange in IFC. “We are also in talks with other exchanges around the world particularly, New York Stock Exchange, Singapore Stock Exchange, London to set up their exchanges here,” Jha said. “As far as the insuranc e sector goes, we are in discussion with Lloyds and GIC,” Jha added.
Securities and Exchange Board of India (Sebi) has laid down rules to facilitate the take-off of the country’s first international financial services centre in Gujarat next month.
The capital market regulator has relaxed net worth and shareholding limit for market intermediaries planning to open offices within the international finance services centre (IFSC) that will be housed at the special economic zone of the Gujarat International Finance Tec-City (Gift City).
Sebi on March 27allowed domestic and foreign stock exchanges and clearing corporations to form a subsidiary to provide their services by having an initial minimum networth of Rs 25 crore and Rs 50 crore, respectively, which could be enhanced to Rs 100 crore and Rs 300 crore over the period of three years from the date of approval.
Besides, the stock exchange or clearing corporation could hold at least 51% of the paidup share capital and the remaining stake could be offered to any other Indian or foreign stock exchange or clearing corporation.
The regulator has also exempted these intermediaries from certain provisions such as the stock exchange not needing to credit 25% of its profits every year to the fund of the clearing corporation which clears and settles trades executed on that stock exchange.
Exchanges can allow dealing in equity shares of a company incorporated outside India, depository receipts, debt securities, currency and interest rate derivatives and index-based derivatives, among others, in any currency other than the Indian rupee with a specified trading lot size on their trading platform.
Sebi said for the purpose of enforcing compliance with regulatory requirements, intermediaries would have to appoint a senior management person as compliance officer.
