GIFT city Current Affairs

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Belgium opens honorary consulate in GIFT City

Belgium has become the first country to open an honorary consulate office in Gujarat International Finance Tec-City (GIFT City), Gandhinagar, Gujarat. Belgium already has two Consulates-General in Mumbai and Chennai, and an honorary consulate in Kolkata. The consulate was inaugurated by Belgian Secretary of State for Foreign Trade, Pieter De Crem.

Hari Sankaran, Vice-Chairman and MD, Infrastructure Leasing & Financial Services (IL&FS), has been nominated as Honorary Consul of the Kingdom of Belgium to the state of Gujarat. Gujarat and Belgium have strong historic ties surrounding the diamond industry.

GIFT City

GIFT is a central business district (CBD) located between Ahmedabad and Gandhinagar in the state of Gujarat. GIFT will be built on 886 acres of land to provide high-quality physical infrastructure with facilities like electricity, water, gas, district cooling, roads, telecoms and broadband services to woo finance and tech firms to relocate their operations from Mumbai, Bangalore, Gurgaon etc. GIFT will include a special economic zone (SEZ), international education zone, integrated townships, an entertainment zone, hotels, a convention center, an international techno park, Software Technology Parks of India (STPI) units, shopping malls, stock exchanges and other service units. The likely cost of the GIFT City project is Rs 70,000 crore.

Gujarat International Finance Tec-City Company Limited (GIFTCL) is responsible for developing and implementing the project. GIFTCL is a joint venture of Gujarat Urban Development Company Limited (GUDCOL) and Infrastructure Leasing & Financial Services (IL&FS).

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PM Narendra Modi inaugurates India’s first international exchange at GIFT city

Prime Minister Narendra Modi inaugurated India’s first international exchange India INX at the International Financial Service Centre (IFSC) of GIFT (Gujarat International Financial Tech) City Gandhinagar, Gujarat.

India INX is a wholly-owned subsidiary of the Bombay Stock Exchange (BSE). It will enable Indian firms to compete on equal footing with offshore firms.

Key Facts
  • India INX will initially trade in equity derivatives, currency derivatives, commodity derivatives including index and Stocks. Subsequently, it will offer depository receipts and bonds once required infrastructure is ready.
  • It will work for 22 hours in a day working from sunrise to sunset i.e. starting when Japan exchanges begin and close when US markets end. It will have 250 trading members including commodity and overseas brokers.
  • India INX is one of the most advanced technology platforms with turnaround time of 4 seconds. It will facilitate international investors and NRIs to trade from anywhere in the world.\
  • It will provide benefits in terms of waiver of security transaction tax, commodity transaction tax, dividend distribution tax, long term capital gain tax and income tax.

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MCX to partner CME group for international exchange at GIFT City

India’s largest commodities exchange platform, Multi Commodity Exchange of India Limited (MCX) has signed a MoU with the US based CME group to set its operations in GIFT City in Gujarat.

Chicago Mercantile Exchange (CME) the world’s largest US futures exchange company and MCX will initially conduct a joint viability study of setting up operations in an International Finance Service Center (IFSC) in India.

India’s big exchange platforms like National stock Exchange (NS), Bombay stock Exchange (BSE) and commodity exchange NCDEX had already announced it plans for operations in GIFT, the first IFSC in India and now MCX has also joined them.

MCX expects that this partnership will fetch the marketplace with best practices and much diversified product slate to the stakeholders of Indian commodities markets.

CME’s expertise will help MCX for identifying and providing suitable products to stakeholders and more specifically to small and medium enterprises that at the moment cannot participate in international exchanges.

It should be noted that CME was trying to entre in Indian Exchange market last many year, it is in business relations with MCX since 2005 and on this eve of agreement with MCX, CME will make its biggest investment in Indian Exchange market.

MoU Specifications:

  • According to MoU both will work to establish a joint working group that will explore opportunities for product development and to market new products and services for the US and Indian markets.
  • Together they will make efforts to educate customers regarding commodity market in India and US.
  • According to the MoU the MCX’s licensing agreement was extended which enables MCX to settle their rupee-denominated oil and gas contract to CME Group’s NYMEX prices.

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