By Admin
12 Jan, 2023 32
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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.