Modi's push for offshore financial hubs to rival Singapore spurs derivatives plans

Hong Kong

PRIME Minister Narendra Modi's dream of offshore financial hubs in India that will rival Singapore and Hong Kong is attracting interest from currency-derivative designers.

Commercial banks operating in India's international financial services centres - the first of which will be Gift City in the province of Gujarat that Mr Modi once governed - will be allowed to offer structured products with prior approval from their board of directors, according to Reserve Bank of India rules issued on Nov 10. That looks set to allow banks that focused on equity-linked securities to expand into foreign- currency contracts, according to Care Ratings.