InvestorQ : What are the major advantages that NRIs and FPIs would get by trading through the GIFT City in Gandhinagar?
Riya Dwivedi made post

What are the major advantages that NRIs and FPIs would get by trading through the GIFT City in Gandhinagar?

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Rutuja Nigam answered.
2 years ago
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In fact, there are a plethora of benefits of the Gift City. Let us look at some key benefits.

· Businesses operating from GIFT City enjoy 10-year tax holiday. This means; a tax holiday from all kinds of taxes including income tax, capital gains tax and any other taxes excluding STT.

· If the FPI is established in IFSC it will be deemed to have met the jurisdiction criteria for foreign portfolio investors.

· GIFT City exemptions are is not just about income tax or GST but about exemptions from income-tax, LTCG, STCG, dividend distribution or minimum alternate tax. Another way to avoid paying STT is to trade on the BSE and NSE exchanges established in GIFT City, where STT is not applicable.

· GIFT City helps you to avoid the exchange risk. In GIFT City, all trades are denominated in dollars. FPIs can trade derivative contracts in GIFT City and buy shares on the NSE and BSE in Mumbai. It will be similar to trading Nifty futures on the SGX.

· SEBI has relaxed other registration and KYC norms for FPIs, coming through the GIFT City route. Even participatory notes, a form of ODI, can be issued by FPIs from Gift city. But, adherence to the Prevention of Money Laundering Act (PMLA) is mandatory.

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