The Anil Ambani-led Reliance Capital Ltd (RCL) on Wednesday announced plans to set up an international commodity exchange (ICEX) and business operations in international asset management and broking at the country's first International Financial Services Centre (IFSC) in the Special Economic Zone within GIFT City.
The board of directors of Gujarat International Finance Tech - City Company Ltd (GIFT City) has approved the allotment of 500,000 square feet of area to the company for offices (300,000 sqft) and residential space (200,000 sqft) in the IFSC.
Reliance Capital will invest about Rs 200 crore over three years towards setting up the office and residential facilities. The unit will provide employment to about 2,500 people.
Sam Ghosh, Executive Director, Reliance Capital Ltd, said the company will start some of the international businesses being done at other global financial centres such as Singapore, Dubai and Tokyo.
"We have about $1.7 billion of offshore funds being operated from Singapore. From some of the emerging businesses our Alternate Investment Funds, which has a size of Rs 2,000 crore at present. Also, a business unit at GIFT will open up opportunities to undertake wealth management and retail broking business in non-rupee currencies," said Ghosh. The wealth management portfolio has about Rs 1,500 crore AUM at present.
The regulatory approvals for its products and ICEX will be obtained in about six months, following which the company will begin operations.
Through the International Commodity Exchange, Reliance Capital hopes to tap international business for commodities ranging from metals, agri commodities, and bullion to currency swaps.
"A unit at GIFT will be better for us to centralise our operations as our businesses are spread across Tokyo, Dubai, Singapore, the US and Europe," Ghosh added.
In April the National Commodity & Derivatives Exchange Ltd (NCDEX) had announced setting up an International Commodity Exchange at the IFSC. "We have received about 60 applications to set up units in IFSC. This is the largest space taken by a private sector company in IFSC till date," said Ramakant Jha, MD and Group CEO, GIFT Company.
About 13.4 million sqft of built-up area has been allotted to various companies for commercial, residential and social purposes so far attracting investment commitment of Rs 9,650 crore in GIFT City, including the SEZ and domestic area.