Budget 2021 sops likely to bring rupee trading from offshore to GIFT

Foreign banks at IFSC likely to focus on non-deliverable forward business, say experts

The non-deliverable forward (NDF) market is expected to get a boost and gradually shift to GIFT City-based International Financial Services Centre (IFSC) with the Union Budget exempting overseas investors from paying income tax, if they hedge their currency risk in the form of NDF with banks set up at the IFSC.

Already, some leading foreign banks have started their business from GIFT City IFSC. Early this month, Barclays Bank received permission to start a business at IFSC. The bank had made a presentation to the SEZ development commissioner in which the NDF business was a major focus, according to a