India’s first IFSC becomes operational at GIFT City in Gujarat
India’s first International Financial Services Centre (IFSC) became operational at Gujarat International Finance Tec (GIFT) City in Gandhinagar district of Gujarat.
It became operational after Union Finance Minister Arun Jaitley unveiled the rules and regulations for this global financial hub.
Key facts of IFSC rules and regulations
- Aim at creating a vibrant IFSC on the lines of those in Dubai and Singapore.
- They also seek to check the flight of trading in rupee and Indian securities to such offshore financial hubs.
- These rules will allow companies incorporate outside India to raise money in foreign currencies by issuance and listing of their equity shares on stock exchanges within the IFSC.
- They will also allow individual and institutional investors from India and abroad, including NRIs to trade.
- Allows foreign and Indian stock exchanges to set up separate bourses within IFSC as subsidiaries.
- Relaxes capital and other requirements for some time in order to facilitate exchanges, clearing corporations and depositories to set shop in the IFSC.
- Allows alternative investment funds and mutual funds that have set up in the IFSC to invest in the securities listed there.