Permissible Activities of IFSC Banking Units and Regulatory Relaxations for FPIs at GIFT City
I. Permissible Activities of International Financial Services Centre (IFSC) Banking Units (IBUs)As per Section 6(1) of the Banking Regulation Act, IBUs are permitted to engage in the following business activities, subject to the conditions outlined in the licence issued to them: II. Foreign Portfolio Investment (FPI): Overview and Regulatory Framework Foreign Portfolio Investment (FPI) refers…
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Regulatory Framework to Establish IFSC Banking Units (IBUs) in India
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…
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Investment Opportunities at GIFT City: India’s Emerging International Financial Services Hub
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,…
Read article Scope and Role of International Financial Services Centres (IFSCs) in India
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…
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IFSC facilitates LRS remittances besides across the border financial products and financial services
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
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…
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