International Financial Services Centre was established in GIFT City Gandhinagar in April 2020 under the IFSC Authority Act passed by the Indian Parliament. IFSCA has the regulatory powers of four financial services regulators in India – Reserve Bank of India (RBI), Securities Exchange Board of India (SEBI), Insurance Regulatory Authority of India (IRDAI) and Pension Fund Regulatory Development Authority (PFRDA).
IFSC at GIFT City is considered a global hub for financial services. The idea is to connect the Indian diaspora globally to India. India is one of the fastest growing economies of the world. The establishment of IFSC at Gandhinagar is done with the idea of connecting to the global markets and having an easy flow of funds. With IFSC, there are multiple opportunities to global investors to set up businesses in the sectors of banking, insurance, reinsurance, investments, capital markets and asset management. The IFSC in GIFT City (GIFT IFSC) seeks to bring back those financial services transactions that are currently carried on outside India by overseas financial institutions and overseas branches/ subsidiaries of Indian financial institutions to the Indian shores.
GIFT IFSC provides numerous benefits to the entities who wish to set up their operations within. There is a robust legal framework and regulatory environment. Various fiscal incentives and tax exemptions in the SEZ make it a favourable place for business. Being a smart city, GIFT city offers advanced and modern communication systems and internet infrastructure. The state of the art infrastructure of IFSC is at par with any other global financial centres.
The IFSCA is a unified authority for development and regulation of financial products, financial services and financial institutions in the International Financial Services Centre in India in the areas of banking, insurance, securities and funds management. The aim is to tap the global capital flows which would result in India’s development and simultaneously provide a globally competitive financial platform for the full range of international financial services at the regional and global level.
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