JPMorgan Chase & Co. established a unit to create derivative products in India's newest international center, which is a first for any global bank.
According to those who asked not to be named citing private information, the US bank will support the offers created by the Gujarat International Finance Tec-City, also known as GIFT City, and promote the items to customers in Asia-Pacific and Europe. According to the people, it intends to appoint five individuals to oversee the hub's efforts during the next 12 months.
The GIFT City operation complements the lender's centers in Hong Kong and London for superior product development, sales, and support.
The move taken by JPMorgan will support New Delhi's efforts to establish GIFT City, which is situated in Gujarat state on the western coast of India, as a substitute trading hub for Singapore and Dubai. According to the people, it demonstrates how top-notch product development can be carried out from the hub that can serve foreign banks' international operations in addition to their transactions pertaining to India.
At least one other international bank has indicated interest in establishing a comparable unit. In order to take advantage of chances to provide services that are not allowed in India, such as acquisition financing and derivatives trading, HSBC Holdings Plc, BNP Paribas, and Sumitomo Mitsui Banking Corp. have created branches in GIFT City. They are also serving their affluent clientele.
In 2022, JPMorgan established its international business unit in GIFT City, where it is permitted by the regulator's economic zone exemptions to offer services to its group companies outside of the free trade zone without creating any obligations to its balance sheet.
