Gujarat International Finance Tech-city (GIFT) SEZ is India's first International Financial Services Centre (IFSC) under the Special Economic Zone Act of 2005. It is designed to be a global hub for financial services, providing a conducive environment for domestic and international finance businesses.
2. When did GIFT IFSC commence operations?
GIFT IFSC commenced operations in April 2015, aligning with the vision to develop a premier global financial services hub.
3. What are the benefits of operating in GIFT IFSC?
GIFT IFSC offers numerous advantages including a competitive tax regime as outlined in the Union Budget 2016, single-window clearance, relaxed company law provisions, and an international arbitration center. These benefits collectively facilitate ease of doing business for financial entities.
4. How many financial entities are operating in GIFT IFSC?
As of a few years into its operation, GIFT IFSC hosts over 125 financial entities. These entities are licensed by major Indian financial regulators such as RBI, SEBI, and IRDAI.
5. What is the role of the International Financial Services Centres Authority (IFSCA)?
Established in April 2020, the IFSCA serves as a unified authority to develop and regulate financial products, services, and institutions in the IFSC. It aims to provide a world-class regulatory environment and promote ease of doing business by integrating the operations of various national financial regulatory bodies.
6. Where is IFSCA headquartered?
IFSCA is headquartered in GIFT City, Gandhinagar, Gujarat. This centralization supports its mission to oversee and streamline financial regulatory processes within the IFSC.
7. What was the regulatory framework before IFSCA?
Before the establishment of IFSCA, the regulation of financial activities in IFSCs was managed by India’s domestic financial regulators, including RBI, SEBI, PFRDA, and IRDAI, each regulating specific segments of financial services.
8. What is the vision behind establishing IFSCA?
The creation of IFSCA is driven by the need for a high degree of inter-regulatory coordination due to the dynamic nature of business in IFSCs. The authority’s holistic vision helps in fostering an environment that attracts significant global and domestic financial activities.
These FAQs aim to provide a comprehensive understanding of GIFT SEZ and IFSCA, highlighting their roles, functions, and the opportunities they offer within the landscape of global and Indian financial services.
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