The establishment of IFSC Banking Units (IBUs) is governed by the International Financial Services Centres Authority (IFSCA). IBUs are specialized banking branches set up within an International Financial Services Centre (IFSC), such as GIFT City, Gujarat, with the objective of providing banking services to global clients and conducting offshore transactions. Key Guidelines for Setting Up…
IntroductionRecognising the potential of India’s financial sector on the global stage, the Government of India initiated the development of Gujarat International Finance Tec-City (GIFT City) in 2007. The project was envisioned as a smart city designed to serve as a hub for international financial services and high-end commercial activities. In the Union Budget for 2015–16,…
IntroductionAn International Financial Services Centre (IFSC) is a jurisdiction that caters to customers outside the domestic economy, focusing on cross-border flows of finance, financial products, and services. IFSCs aim to attract global financial institutions and facilitate international financial transactions by offering a business-friendly ecosystem under a regulatory framework aligned with global standards. The scope of…
An international financial services centre (IFSC) caters to customers outside the jurisdiction of the domestic economy, dealing with flows of finance, financial products and services across borders. The IFSC brought back the financial services and transactions that are earlier carried out in offshore financial centres by Indian corporate entities and overseas branches/subsidiaries of Financial Institutions…
A meeting of the Sub-Committee of the Financial Stability and Development Council (FSDC) was held today (January 13, 2021) in Mumbai through video conference. RBI Governor Shri Shaktikanta Das, chaired the meeting. In the meeting, topics of the major impact on global and domestic economy as well as financial financial stability were discussed. The following…
International Financial Services Centre (IFSC) caters to customers outside the jurisdiction of the domestic economy dealing with flows of finance, financial products and services across borders. It is also known as an offshore financial centre since it deals with the flow of finance, financial products and services across borders. IFSC set up in India can…
Foreign Currency Convertible Bonds (FCCBs) are hybrid financial instruments that combine features of both debt and equity. Issued by companies seeking to raise capital from international markets, FCCBs are denominated in a foreign currency and offer investors the option to convert their holdings into equity shares of the issuing company under specified conditions. Key Features…
The Foreign Exchange Dealers’ Association of India (FEDAI) was established in 1958 as an association of banks dealing in foreign exchange in India—commonly referred to as Authorised Dealers (ADs). FEDAI operates as a self-regulatory body and is incorporated under Section 25 of the Companies Act, 1956 (now Section 8 of the Companies Act, 2013). FEDAI’s…
With the increasing globalization of financial markets and ongoing deregulation, the role of self-regulatory organizations like FEDAI has evolved significantly. Today, FEDAI plays a catalytic role in ensuring the smooth functioning of India’s foreign exchange markets by fostering collaboration among key stakeholders, including: Here is a structured comparison of FEDAI with other key financial market…
IntroductionDerivatives are critical financial instruments used for hedging, speculation, and risk management. In India, the regulatory framework for derivative products is governed by the Reserve Bank of India (RBI) and supported by the Foreign Exchange Dealers’ Association of India (FEDAI). In January 2022, the RBI issued updated Master Directions on OTC derivatives, establishing a modern…
