Financial Daily from THE HINDU group of publications
Tuesday, Apr 09, 2002

Port Info

Group Sites

Money & Banking - Events

Mumbai seen ideal as global financial centre

Our Bureau

MUMBAI, April 8

THE Confederation of Indian Industry (CII) has mooted development of Mumbai as an international financial centre.

At a seminar to discuss the `way forward' with regards to the regulatory, legal and infrastructure policies in this regard, CII has suggested that Mumbai is an ideal place for an international financial centre due to the presence of a large number of financial market players such as banks, insurance companies, stock exchanges, capital market intermediaries, etc.

Availability of high-quality support lawyers, accountants and the high level of connectivity to international destinations also work in Mumbai's favour, according to CII officials.

However, CII has said that to make Mumbai a successful model for an international financial centre will require changes in many of the regulatory policies and procedures required by Indian law.

Speaking at the seminar, the Maharashtra Chief Minister, Mr Vilasrao Deshmukh, said, "With the creation of an international or offshore financial centre, Mumbai could attract large funds which can be serviced by the human resources and infrastructure already available here." Through the CII Task Force, a core group with representatives from the State Government, RBI and other organisations has been set up to work out the details. Whatever model proposed will require a suitable dispensation from the Union Government and the RBI, said Mr Deshmukh.

The proposals will have to address issues like money laundering, taxation and banking regulations; and so, the Union Government and the RBI might prefer a gradual approach, he said. However, he added, that a gradual approach might leave India lagging behind in the world economic scene. "In developing an international or offshore financial centre here, we have international experiences to draw on," he said.

Mr Deshmukh said that the investment climate in Maharashtra has improved. The foreign direct investment that Maharashtra attracted in the last two-and-a-half years was almost equal to FDI approved in the previous eight years.

"There is a new stress on the creation of world-class infrastructure in partnership with the private sector. We want to have an Act to provide a transparent framework for public-private partnerships in infrastructure so that it will add confidence in investors," he said.

Send this article to Friends by E-Mail

Stories in this Section
Re down 6 paise; gilts fall

HDFC Standard Life achieves Rs 12-cr premium target
Jindal Vijaynagar mandate goes to ICICI-Lombard
ICICI Bank has most number of ATMs
Corpn Bank move on Ruia Cotex may hit Jessop sale
PNB business up 17.5 pc
Indian Bank Singapore branch licence
Good response to bonds auction
Alternative mechanism for NPAs urged
Mumbai seen ideal as global financial centre
Repco Bank seeks Govt nod to de-cooperatise

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line