Active outreach initiatives are on to attract global players to GIFT City, says IFSCA chairman

The outreach programme with the officials of the shipping sector of Greece was done with a specific intent of creating awareness about the opportunities related to setting up of ship-leasing units at GIFT City.A

As part of its attempts to enhance traction and attract more global entities at GIFT City, regulatory body International Financial Services Centers Authority (IFSCA), has been actively engaging in outreach programmes with various overseas companies and jurisdictions.

According to IFSCA Chairman K Rajaraman, GIFT City offers a lot of benefits to companies across sectors and hence the policy makers are continuously carrying out outreach programmes with various overseas companies.

“Since GIFT City is a new jurisdiction, we have to keep meeting people and tell them about the benefits,” said Rajaraman, while speaking at an event at BSE on Wednesday.

He further elaborated about a specific outreach programme wherein the regulatory body was engaged in discussions with representatives of the shipping industry of Greece, which has of one of the world’s largest merchant fleets -- the country controls over 20 percent of the global merchant fleet capacity.

The outreach programme with the officials of the shipping sector of Greece was done with a specific intent of creating awareness about the opportunities related to setting up of ship-leasing units at GIFT City.

Incidentally, the recent past saw Great Eastern Shipping Company taking the first step towards establishing a ship leasing unit at GIFT City. On March 15, the board of the company approved setting up a subsidiary with an authorised share capital of Rs 50 crore for setting up a ship leasing unit at the Gujarat-based IFSC.

Also Read | Rules for direct listing in GIFT City to be out in June, says IFSCA chairman

Meanwhile, a recent statement from IFSCA had stated that the expected growth in Indian trade from $1.6 trillion to about $4 trillion by 2030 is set to bring in a huge demand for shipping services.

“There are lot of benefits that GIFT IFSC provides for ship leasing companies like streamlined regulatory processes, robust legal framework, ease of doing business, competitive cost, availability of skilled talent, tax incentives, and others,” said the release.

The recent past has seen IFSFCA assuming a very active role in terms of attracting newer entities and foraying into newer segments as well.
In May, the watchdog constituted an Expert Committee under the chairmanship of Rajeev Kher, former Commerce Secretary and a member of the Competition Appellate Tribunal, that will suggest steps to develop commodity trading at GIFT City.

According to IFSCA, allowing and enabling commodity trading at GIFT City will “facilitate business integration of IFSC financial ecosystem with global trade flows” and will further help in capitalising on the “integration opportunities with major commodity hubs and attract global investment flows into IFSC.”

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