Indian Finance: Updated on 05.04.17:Gift City Gandhinagar Source of Funds for India, Creation of Infrastructure.

India requires 2-3 trillion US$ for Manufacturing,

for Infrastructure etc over the next Ten years, One trillion US$ can be raised through GIFT City. For that purpose- 

BSE International exchange at GIFT:- It will 

compete with Global Financial hubs like Dubai, Singapore,  Hong-Kong, US and London .
It  is running 22 hours a day to overcome Competition from Different Time Zones.
A Separate company with a Separate Board, CEO, Clearing Corporation & Team.
Sensex 50, an index recently created. 
A Trading Centre having Derivatives, Commodities and Currency.
Shifting of Country's Equity, Currency & Commodity trading from International Tax Heavens to National Exchange. 
To help Foreigners do things in a regulatory environment, Ease of Operations under Implementation.
Some of them have already happened with Sebi, RBI and IRDAI all other regulators creating newer regulations.
Corporate Affairs Ministry has created a new framework for GIFT City, not only for companies, also for the governments — for central government, for states and for municipalities. 
Currently Conducting Road-Shows across Major global International Centres as above to attract Investors and Businesses.
Idea of Raising Funds from “Japanese housewives to Royal Families of Gulf & New Wealthy Persons in Gulf ”.
It is through Masala Bonds, or Foreign Currency Bonds or Equities.
Connectivity through Strong IT network.

____________________________________________________________________

International Banking from India

Yes Bank, Federal Bank, ICICI, KOTAK ,INDUSIND, IDBI International Banking units(IBU) are operational in International Financial Services Center(IFSC) at Gujarat International Financial Tec City (GIFT) Company Ltd.  Gandhinagar, Gujarat. 
SBI, PNB,  and few more are allotted Space for IBU.

Hence it includes approval of IRDA, SEBI & others

Through IBU  Corporates can be: Multi-Locational, Multilingual, adopting Multi Culture more easily: 

The Indian Corporate may be New to Country, to Environment, Statutes and Laws, and finally Culture. and still interested in establishing unit in a Foreign Location.

Much Advantageous to Big Indian Groups TATA,Reliance,Aditya Birla, ESSAR, etc.

Multi pronged Possibility of having Business Relationship in Most Backward South African Countries to Most Advanced USA, China etc.

Indian Corporate is new

                                      Two Way advantageous: Other hand a Foreign Corporate may be interested  in setting up a Company in India.

• This would be advantageous to Companies having presence in more than One Country or the Companies Interested in Expanding Business in Multi Countries Locations.

• Permissions:- RBI and Concerned SEZ Commissioner's permission(Being set up as a part of SEZ) is absolutely essential and would be at par with Foreign Exchange Branch of an Indian Bank to be open in International Financial Services Center(IFSC) with Minimum Capital of US$ 20Million permitted to deal Mainly with Corporate s: Individuals and Retail Banking Exclusively prohibited.

•  Sources:-Liquidity, Interest Rate and Risk Management as  applicable to Overseas Branch of Indian Bank.Hence Books of Accounts including Annual Accounts would be in Foreign Currency. All Deposits,Liabilities, Borrowing must be in Foreign Currency and have Maturity of More than One year. Transactions specially payments would be through Transfers only. Acceptance of Deposits are subject to provisions of FEMA-1999 and Combating of Financial Terrorism Act.

• Regulations:- Comprehensive Overnight Limit for each Currency must be fixed.

•  Exclusive Advantages to IBU:-    

1. No Requirement of opening of Foreign Branches:only Representative Office may be opened. 
2. A Complete Banking Partner of Customers with Global Aspirations.
3. Raising Resources in Foreign Countries and Foreign Currencies.
4. Providing Universal Banking Products to Customers in India as well as Abroad. Serving Indian Companies Subsidiaries abroad.Mergers and Acquisitions are also possible. It is a Very good Platform to cultivate cooperative working relationship with Foreign Govt Agencies.
5.   In due course it may receive SEBI approval for Currency Derivatives,NIFTY futures and Depository Receipts. Comprehensive Investment Banking Business of Under-writing,dealing in Corporate Bonds,Equities and other type of Securities. 
6. Even possibility of acquisition of Foreign Exchange Branches of weak Indian Banks by IBU may be explored.
7. IBU may promote Full line of Financial Services by collaboration with Foreign Banks and their Subsidiaries.
8. Overseas Customers may receive Project Finance and Trade Finance including Companies buy-outs in India.
9. The concept is popular in Singapore,Dubai and Japan.  Doha Bank Dubai having operations in Eighteen Countries through IBU and even without opening Branches only Representative Office is sufficient.
10. IBU would have advantage of Expertise,Alliances with Foreign Financial Institutions. The Indian IBU may be granted status of Financial Holding Company by Foreign Governments.
11. IBU are getting 100% Tax Exemption for First Five years,thereafter 50% Profit for Next Five years. 

Reader's comments are cordially invited through comments on this Article over E-mail ashok.agarwal8@gmail.com:7228805981: