Reliance Capital to set up global commodity exchange at GIFT-City

The Anil Ambani-led Reliance Capital Ltd (RCL) plans to set up an international commodity exchange (ICEX) and international asset management and broking business operations at the Gujarat International Finance Tec-City (GIFT), the country's first International Financial Services Centre (IFSC).

Reliance Capital on Wednesday announced that GIFT, a Gujarat government project, has allotted 5,00,000 sq ft of space in the International Finance Service Centre (IFSC) Special Economic Zone, being set up under the GIFT project, to the company.

This is the largest space taken by any private sector company in IFSC under GIFT till date, Reliance Capital said.

The company plans to set up a host of emerging businesses, including alternate investment funds, commodity exchange business and other international businesses, in the GIFT facility, subject to requisite regulatory approvals.

The board of directors of GIFT-City has approved the allotment of 5,00,000 square feet of area to the company, which includes 3,00,000 sq ft for offices and 2,00,000 sq ft for residential purposes, in the IFSC.

Reliance Capital said it plans to use a part of its allotted space under GIFT for housing its employees.

Reliance Capital will invest about Rs200 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 Rs2,000 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, adding that the wealth management portfolio has about Rs1,500 crore AUM at present.

Reliance Capital expects regulatory approvals for its products and ICEX in about six months, following which the company will begin operations.

By operating in the International Commodity Exchange, Reliance Capital hopes to tap international business for commodities, including metals, agri commodities, and bullion as also currencies.

"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.

GIFT-City has so far received about 60 applications for setting up units in IFSC, including by the National Commodity & Derivatives Exchange Ltd (NCDEX) for setting up an International Commodity Exchange.

Reliance Capital is so far the biggest investor in the GIFT-City and the 5,00,000 sq ft area acquired by the company is the largest for any entity so far, according to  said Ramakant Jha, MD and Group CEO, GIFT-City.

"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," Jha said.

GIFT-City has so far allocated about 13.4 million sq ft of built-up area to various companies for commercial, residential and social purposes, attracting investment commitment of Rs9,650 crore, including in the SEZ and domestic area.