India, on Wednesday, called upon banks in the Gulf countries to register themselves as Foreign Institutional Investors (FIIs) so that they can trade in equity markets here.
“FIIs from Gulf countries should actively look at investing in the Indian stock markets,” Union Commerce Minister Kamal Nath said in a presentation at the valedictory function of the 3rd India-Gulf Cooperation Council Industrial Forum.
Mr Kamal Nath said registering as FIIs in India would help Gulf banks deliver benefits to their high-networthclients. The Gulf Cooperation Council comprises of Bahrain, Kuwait, Oman , Qatar, Saudi Arabia and the UAE.
Investment avenues
At the end of the two day conclave, the two sides identified investment opportunities in infrastructure and the agro-processing industry in India and the Gulf countries.
In addition to investing in stocks, Mr Kamal Nath noted that the service sector was another important area of India-GCC cooperation, especially in telecom, IT, biotechnology, tourism and pharmaceutical.
“Services are one of the most important areas for India-GCC cooperation in trade and investment. Transfer of technology will also go a long way in realising the potential of India-GCC trade,” he added.
Further, he said, GCC nations can also look at actively supplying capital goods, raw material, intermediate products and finished goods to India.
Both India and GCC have also agreed to speed up talks for a free trade agreement (FTA) between them.
Free trade pact
“There is no problem from the Indian side to expedite the FTA process,” Department of Industrial Policy & Promotion Secretary Ajay Dua said.
Mr Kamal Nath had said that the FTA could be clinched in the next one year. The Gulf countries are also discussing similar agreements with several countries, including Pakistan and Singapore, GCC Assistant Secretary General for Economic Affairs Mohamad Obiad Almazroai said.
“We have one negotiation team talking with all,” Mr Obaid Almazroai said. “Once the FTA with European Union is in place, the FTA with India would be the next,” the GCC envoy pointed out.
India and the Gulf countries would set up an investment company for facilitating small and medium enterprises (SMEs) to open operations in both the regions. The company would be set up with an investment of US$50-70 million.

CONTRACTS FROM JUNE 7
Rupee to trade on Dubai bourse
Dubai, PTI: Investors in the Middle East can now trade in Indian currency with Dubai Gold & Commodity Exchange (DGCX), on Wednesday, announcing the launch of world’s first Rupee Currency Contract.
DGCX said in a statement here that it would launch trading in the rupee contract on June 7. The DGCX Indian Rupee contract will for the first time in history enable individuals and companies to have the opportunity to hedge and trade their Indian Rupee risk on transparent and equal basis that an exchange provides, DGCX Chairman Colin Griffith said.
So far, the only market available to hedge Rupee risk is the non-deliverable forward inter-bank market but that is not accessible to everyone.
The recent appreciation in the Rupee has necessitated the need for an efficient and easily accessible to all, risk management tool, which is exactly what this DGCX contract would provide, it said. “As Indian economy continues to grow at record pace; so will the need for this contract,” DGCX said.
Each DGCX Indian rupee contract would represent Rs 2 million. The prices would be quoted in the US cents per Rs 100, with a minimum price fluctuation of 0.000001 US$ per Rupee ($2 per contract).
At any point in time DGCX will list the current and next two calendar months, plus the next three calendar quarterly months. DGCX would also hold a mock trading session in rupee contract on June 2.