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    Question

    Which of the following types of companies are not permitted to set up operations in GIFT City's IFSC?

    A Banking companies Correct Answer Incorrect Answer
    B Insurance companies Correct Answer Incorrect Answer
    C Asset management companies Correct Answer Incorrect Answer
    D Manufacturing companies Correct Answer Incorrect Answer
    E All of the above are permitted Correct Answer Incorrect Answer

    Solution

    Explanation:   GIFT City's IFSC is primarily meant for financial services companies, and therefore, manufacturing companies are not permitted to set up operations in the IFSC.   The city mainly comprises banks, capital market entities, insurance companies and captive manufacturing units. As of date, there are 142 SEZ units which are operational and international exchanges dealing with an average turnover of $4 billion daily. Banking businesses in IFSC amount to $ 28 billion as of 2020 and iInsurance businesses upto $ 30 billion.   With over 200 companies setting shop in GIFT, key occupants in the SEZ area are – Bombay Stock Exchange (BSE) Brokers Forum and the National Stock Exchange (NSE); international banks like YES bank, Federal Bank, State Bank of India, Standard Chartered; and insurance companies like Edelweiss, New India Assurance, and Life Insurance Corporation of India (LIC).   Option E is correct.

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