Financial Services Centres Authority (IFSCA)

👉An IFSC enables bringing back the financial services and transactions that are currently carried out in offshore financial centres by Indian corporate entities and overseas branches/subsidiaries of Financial Institutions (such as banks, insurance companies, etc.) to India.

👉It offers a business and regulatory environment that is comparable to other leading international financial centres in the world like London and Singapore.

👉IFSCs are intended to provide Indian corporates with easier access to global financial markets, and to complement and promote further development of financial markets in India.

👉The International Financial Services Centres Authority (IFSCA), headquartered at GIFT City, Gandhinagar Gujarat, has been established under the International Financial Services Centres Authority Act, 2019.

👉The SEZ Act 2005 allows setting up an IFSC in an SEZ or as an SEZ after approval from the central government.

❇️IFSC can provide:

✔️Fund-raising services for individuals, corporations and governments.

✔️Asset management and global portfolio diversification undertaken by pension funds, insurance companies and mutual funds.

✔️Wealth management and Risk management operations such as insurance and reinsurance.

✔️Global tax management and cross-border tax liability optimization, which provides a business opportunity for financial intermediaries, accountants and law firms.

✔️Global and regional corporate treasury management operations that involve fund-raising, liquidity investment and management and asset-liability matching.

✔️Merger and acquisition activities among trans-national corporations.

👉An IFSC caters to customers outside the jurisdiction of the domestic economy.


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