The Unit Approval Committee of GIFT SEZ Wednesday met to consider those proposals as the special economic zone is set to launch a bullion exchange in the next few weeks amid growing investor interest.
Individual applicants could not be contacted immediately for comments.
“We have seen a steady growth in the number of entities commencing their operations in GIFT IFSC,” said Tapan Ray, managing director at GIFT City. “One of the significant developments is the application for setting up India’s first international bullion exchange.”
The bullion exchange is expected to evince interest from international investors as well. Local traders are also eyeing tax incentives through participation here.
In the Union Budget 2020, the finance minister announced such a proposal to launch a bullion exchange from GIFT City.
Last month, more than a dozen entities including JP Morgan, Punjab National Bank, and KPMG applied to open shop at Gujarat GIFT City in the latest round, ET reported on September 9.
The number of entities at GIFT City SEZ rose to 280 this year from 140 in 2019 with banking transactions exceeding $110 billion in value by August. The authorities are likely to approve the applications cited above, taking the count to 285, said people aware of the matter.
There has been a 70 per cent rise in the number of entities setting up operations in GIFT City SEZ in the past year.
The International Bullion Exchange shall be the “Gateway for Bullion Imports into India,” wherein all the bullion imports for domestic consumption shall be channelized through the exchange, the finance ministry said in a note in August
National Stock Exchange (NSE), the Multi Commodity Exchange (MCX), India INX International Exchange (INDIA INX), National Securities Depository (NSDL) and the Central Depository Services (CDSL) have joined hands to form the holding company India International Bullion Holding IFSC Ltd. (IIBH) to set up and operationalise International Bullion Exchange, Bullion Clearing Corporation and Bullion Depository in IFSC, GIFT City.
