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By Admin 12 Jan, 2023 32 Comments

Capital Market Instruments Available in GIFT City

GIFT City offers a wide range of capital market instruments, providing NRIs with diverse investment opportunities. Some of the key instruments include:

Equity

Based on current trends and projections, India is poised to continue its upward trajectory. Several factors suggest that India could become one of the world's leading economies by 2030 :

  • Stocks : Investors can buy and sell shares of listed companies on the stock exchanges operating in GIFT City.
  • Mutual Funds : Mutual funds offer a diversified portfolio of stocks, managed by professional fund managers.
  • Exchange-Traded Funds (ETFs) :ETFs track the performance of an underlying index, providing exposure to a basket of securities.

Debt

While real estate has been a popular choice, equity and mutual funds offer several advantages for NRIs:

  • Corporate Bonds : Bonds issued by corporations, offering fixed or variable interest rates.
  • Government Bonds :Bonds issued by the Indian government, considered relatively safe investments.
  • Debt Mutual Funds :Mutual funds that invest primarily in debt securities.

Life Insurance Policies

While GIFT City primarily focuses on capital market instruments, life insurance policies can also be offered through GIFT City. This allows NRIs to invest in life insurance products while enjoying the benefits of the SEZ.

Key Benefits of Investing in Life Insurance through GIFT City

  • Tax Benefits : Investors may be eligible for tax benefits on life insurance premiums and payouts.
  • Regulatory Framework : Life insurance products offered in GIFT City are subject to the regulatory oversight of the Insurance Regulatory and Development Authority of India (IRDAI).
  • Access to Global Products : GIFT City may offer access to a wider range of life insurance products, including those from international insurers.

Conclusion

GIFT City provides a comprehensive range of capital market instruments, including equity, debt, and derivatives. Additionally, life insurance policies can also be offered through GIFT City, providing NRIs with diverse investment options and potential tax benefits. By exploring the various investment opportunities available in GIFT City, NRIs can capitalize on the growth potential of India's financial sector.

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