GIFTCITY 2 LAST (BCM2)

Of the 886 acres allotted to GiftCity, about 250 acres Of the 886 acres allotted to GiftCity, about 250 acresare for the IFSC which will be treated like a special economiczone. IFSC-like centres are operating in Dubai, Singapore andHong Kong. According to estimates, in the absence of an IFSCs, thecountry has lost around 50 per cent market share in therupee-dollar futures contracts traded on the Dubai Gold &Commodities Exchange and the Nifty futures traded on theSingapore Exchange. It is estimated that Rs 1,400 crore per day, or Rs twotrillion per year, of trades in rupee derivatives is takingplace in locations outside the country, according to aFebruary concept note prepared by the National Institute ofPublic Finance and Policy for the finance ministry. In March, markets regulator Sebi approved guidelines forIFSCs that would allow domestic and foreign exchanges,clearing corporations and depositories to set up subsidiariesto undertake their business in such centres. Also, reinsurance business worth Rs 7,300 crore iscurrently going outside the country, but can now come to IFSC,according to Irda chairman TS Vijayan. IFSCs are seen as a significant contributor to GDP. PTIBEN DKANURDS