Scope and Role of International Financial Services Centres (IFSCs) in India

Foreign Exchange

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…

What is an IFSC and how does it work for the international financial market

Information Technology

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…

IFSC facilitates LRS remittances besides across the border financial products and financial services

Foreign Exchange

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…

Understanding Foreign Currency Convertible Bonds (FCCBs): A Hybrid Capital-Raising Instrument

Capital Market, Foreign Exchange

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…

Overview: FEDAI with Other Regulatory Organisations in India

Foreign Exchange, Legal and Regulatory aspects of banking

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…

Derivative Products in India: RBI and FEDAI Guidelines

Foreign Exchange

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…

India’s Exchange Control Framework: An Overview

Foreign Exchange, Reserve Bank Functions and news

India’s exchange control regime is primarily governed by the Foreign Exchange Management Act, 1999 (FEMA). This legislation regulates foreign exchange transactions with the objective of facilitating external trade and payments while promoting the orderly development and maintenance of the foreign exchange market in India. The Reserve Bank of India (RBI), in consultation with the Government…