“There was a suggestion that in order to further scale up operations at Gift City and compete at a global level, public sector banks (PSBs) can consolidate their businesses. We sought views from banks, and it is being looked at," an official said.
Banks step up in opening Gift accounts; companies considering alternative US banks too.
The Reserve Bank of India (RBI) allowed domestic investment in a GIFT City fund using the Liberalised Remittance Scheme (LRS), under which a resident Indian can invest up to $250,000 a year in stocks and properties abroad. But administrators of category 3 AIFs receiving such LRS money may have a tough time dealing with the taxman.
But the new rules mandated that courses and degrees/diplomas/certificate offered in Indian campuses of foreign universities and institutes must be identical to foreign campuses and must enjoy the 'same recognition and status' as if they were conducted by the parent entity in its home jurisdiction.
At least three top lenders - Axis Bank, HSBC and State Bank of India (SBI) - are likely to extend the loan, which could be raised in the Gujarat GIFT City.
Costs could come down by as much as $50 a kilogram initially, people familiar with the matter told ET, as the Bullion Exchange (IIBX) at GIFT City becomes the favoured platform for gold consignments in a country where the yellow metal has beaten all competing asset classes as the traditional store of value.
Banks including State Bank of India and Axis Bank have doubled consolidated balance sheet size to $35 billion in the last two years since the unified regulator assumed formal status. Prime Minister Narendra Modi is likely to visit GIFT City this Friday after a gap of five years, launching a host of new initiatives.
Narendra Modi is likely to formally launch the operations of JPMorgan Chase, Deutsche Bank and Japan's MUFG at the International Financial Services Centre (IFSC) on July 15
Internationalisation of Indian Finance Services industry through the GIFT City and the Cross border resolution framework changes suggested in the IBC Code will help India Inc CFOs achieve sustainable growth.
Overseas listings are likely to help Indian startups raise funds at good valuations abroad, where demand may be higher.
Among other benefits, the VCC structure allows funds some concession from short-term and long-term capital gains tax on returns on equities. The onus of paying tax, as per the standard VCC structure, falls on the investors in these entities.
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