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    JP Morgan, PNB, KPMG among latest firms at GIFT City's gates

    Synopsis

    The number of entities at GIFT City rose to 265 this year from 140 in 2019 with banking transactions exceeding $125 billion in value by August. There has been a 62% rise in the number of entities setting up operations in GIFT City in the past year.

    GIFT City
    Located near Ahmedabad, GIFT City has turned into a key focus area for the government in wooing overseas investments.
    JP Morgan, Punjab National Bank and KPMG are among those that have applied to start operations at Gujarat International Finance Tec-City (GIFT City) in the latest round. The unit approval committee of the GIFT special economic zone (SEZ) met on Wednesday to consider 18 proposals. Located near Ahmedabad, GIFT City has turned into a key focus area for the government in wooing overseas investments.

    Mumbai-based NSDL Database Management, an information utility, has applied for the “setting-up of new ancillary/professional/IT services unit in GIFT multi-services SEZ.” It’s a unit of NSDL, the country’s first depository. ET has obtained a copy of the applicants’ list.

    JP Morgan declined to comment. KPMG, NSDL and PNB didn’t respond to queries.

    "We are witnessing a significant surge in the number of applications to set up their operations in GIFT IFSC (International Financial Services Centre) in the last few months," said Tapan Ray, MD and group CEO, GIFT City.

    • No of entities at GIFT City rose to 265 this yr from 140 in 2019
    • Authorities likely to approve all 18 applications, taking count to 283
    • Banking transactions exceeded $125 billion in value by August
    • Deutsche, HSBC, Citigroup and Bank of America, Standard Chartered and Barclays opening offices in GIFT City
    • Recently, Axis Bank sold its maiden additional tier 1 offshore bonds from GIFT

    Ecosystem Expanding
    "Ease of doing business coupled with a competitive tax regime and state-of-the-art infrastructure makes GIFT IFSC an attractive value proposition not only for Indian companies but also global players," he said.

    The number of entities at GIFT City rose to 265 this year from 140 in 2019 with banking transactions exceeding $125 billion in value by August. The authorities are likely to approve the applications cited above, taking the count to 283, said people aware of the matter. There has been a 62% rise in the number of entities setting up operations in GIFT City in the past year.

    It got a big push with the likes of Deutsche, HSBC, Citigroup and Bank of America, Standard Chartered and Barclays opening offices to facilitate rising Indian trade as well as capital movement. Recently, Axis Bank sold its maiden additional tier 1 offshore bonds from GIFT City.

    The GIFT City ecosystem has been expanding, particularly since the pandemic.

    "The rapid strides made by GIFT IFSC over the last few months has been facilitated by IFSCA, the unified regulator for the zone, which has brought together a comprehensive and consistent regulatory regime," said Dipesh Shah, head of development at the International Financial Services Centres Authority (IFSCA).


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