The GIFT International Financial Services Centre ("GIFT IFSC") established in Gandhinagar, Gujarat is India's first international financial services center with the intent of catering to global MNCs and financial institutions in alignment with international standards of business. To ensure that utmost benefits can be provided, the entire zone has been equipped with world class infrastructure akin to global standards. This newsletter navigates the journey of GIFT IFSC, and the International Financial Services Centres Authority ("IFSCA") set up under the International Financial Services Centres Authority Act, 2019.
IFSCA as a unified regulator is also head quartered at GIFT IFSC and is committed to providing a sound and well-structured regulatory environment by providing a single window clearance system. The IFSCA has been able to achieve this through unification of the powers previously held by four separate regulators: Reserve Bank of India ("RBI"), Securities and Exchange Board of India ("SEBI"), Insurance Regulatory and Development Authority of India ("IRDAI"), and Pension Fund Regulatory and Development Authority of India ("PFRDAI").
We are providing transactional updates including a bird's eye view on legal and regulatory updates related to the GIFT IFSC.
UK University of Surrey to open a Campus in Gujarat IFSC
January 28, 2025 – The University of Surrey, UK, is set to establish an International Branch Campus in GIFT IFSC. This initiative will be implemented in partnership with the transnational education group, GUS Global Services ("GGS").
The Indian campus of the UK-based University of Surrey will focus on teaching and research excellence in areas such as business, international finance, computer science, cybersecurity, and other fields aligned with IFSC's strategic vision in collaboration with GGS India. All teaching and academic quality will be delivered and overseen by the University of Surrey's staff.
Source: Times Now
Edinburgh University to tie up with industries in GIFT IFSC
January 21, 2025 – The University of Edinburgh, Scotland is set to collaborate with biotech, fintech and pharma industries in Gujarat. This international collaboration aims to strengthen research connection between Edinburgh and Gujarat and drive forward the global field of biotechnology.
Source: The Indian Express
Successful Conclusion of the Inaugural Edition of Global Securities Markets Conclave 1.0 at GIFT IFSC
January 17, 2025 – On January 16, 2025 and January 17, 2025, IFSCA, in collaboration with the Market Infrastructure Institutions ("MIIs") operating within GIFT IFSC—namely NSE International Exchange ("NSE IX"), India International Exchange ("India INX"), NSE International Clearing Corporation ("NSE ICC"), India International Clearing Corporation ("India ICC"), India International Depository ("IIDI"), and India International Bullion Exchange ("IIBX"), successfully inaugurated its flagship securities market event in the Global Securities Market Conclave at GIFT IFSC .
The conclave, themed "Building an Innovative & Sustainable Securities Markets Ecosystem in GIFT IFSC," convened over 250 participants in person. This diverse gathering included policymakers, industry leaders, and market practitioners from India, other International Financial Services Centres, and across the globe.
The key highlights of this conclave is stated below:
- The conclave was inaugurated by Shri K. Rajaraman, Chairperson of IFSCA, along with senior MII management. In his keynote, he outlined IFSCA's shift from onshoring India-centric overseas businesses to supporting India's 'Viksit Bharat 2047' vision. Shri V. Anantha Nageswaran, Chief Economic Advisor, highlighted the evolution of Indian financial markets, praised the vision behind GIFT IFSC, and emphasized its potential amid India's growing economic influence.
- The two-day conclave featured a comprehensive agenda comprising over 20 sessions. These sessions focused on a range of critical topics, including emerging trends in capital markets, cross-border financial services, sustainable finance, fund management, the landscape of private investments, the bullion and precious metals ecosystem, and the evolving role of GIFT IFSC as a global financial hub.
- Numerous industry leaders and subject matter experts contributed their insights on diverse subjects, such as new business models and emerging growth areas, enhancing investor confidence, leveraging the Indian diaspora, and harnessing emerging technologies for market growth. IFSCA officials also presented key regulatory developments and opportunities within the IFSC capital markets domain.
- The discussions throughout the conclave explored the journey and progress of GIFT IFSC to date, while also examining its potential to become a leading destination for fundraising, trading, and investments. The importance of high-quality human capital and the availability of social infrastructure in GIFT IFSC, comparable to established financial centers, were highlighted as key factors in further solidifying GIFT IFSC's position as a preferred international financial center.
Source: GIFT IFSCA website [Press release dated January 17, 2025]
Extension of timeline for implementation of the Circular titled "Complaint Handling and Grievance Redressal by Regulated Entities in the IFSC"
January 13, 2025 – One of the major objectives of a financial sector regulator is to protect the interests of the financial consumers. To ensure that the regulated entities in GIFT IFSC have an efficient and effective mechanism for handling of complaints and redressal of grievances of their consumers, IFSCA vide circular no. IFSCA-LPRA/3/2024-Legal and Regulatory Affairs dated December 02, 2024 ("Original Circular") set out the norms and requirements for the complaint handling procedures of the regulated entities in GIFT IFSC. As per the Original Circular, the regulated entities were required to implement these norms and requirements till January 15, 2025.
Subsequently, IFSCA received requests from regulated entities seeking an extension of the timeline, citing operational challenges in implementing the norms and requirements outlined in the Original Circular. In response, IFSCA, through circular no. IFSCA-LPRA/3/2024-Legal and Regulatory Affairs, extended the implementation deadline from January 15, 2025, to August 01, 2025.
Source: GIFT IFSCA website [Circular dated January 13, 2025]
IFSCA cautions the public on phishing attempts impersonating IFSCA employees
January 13, 2025 – IFSCA acknowledges that a series of phishing attempts have been made to the regulated entities in GIFT IFSC. These attempts involve fraudulent emails impersonating IFSCA senior management being sent from e-mail addresses that do not belong to IFSCA.
To ensure the legitimacy of any email communication supposedly from IFSCA, IFSCA vide press release advised that all official communications with the regulated should occurs solely through e-mail addresses with the domain "@ifsca.gov.in." Any e-mail claiming to be from IFSCA personnel using a different domain name should be considered suspicious and disregarded. Further, IFSCA advised everyone to verify the authenticity of any unexpected email, especially those requesting personal or financial information.
Source: GIFT IFSCA website [Press Release dated January 13, 2025]
IFSCA kickstarts the IFSCA (Informal Guidance) Scheme, 2024
January 01, 2025- IFSCA through circular no. IFSCA-LPRA/11/2024-Legal and Regulatory Affairs dated December 02, 2024 introduced the "IFSCA (Informal Guidance) Scheme, 2024". This initiative aims to assist financial institutions and individuals planning to establish operations in the International Financial Services Centre (IFSC). The Scheme provides a structured framework for seeking clarity and guidance on business activities, transactions, and legal matters under IFSCA's regulatory scope. It is designed to simplify decision-making, improve efficiency, and offer an easy process for obtaining informal guidance on potential or ongoing business operations.
The said scheme was scheduled to be operational from January 01, 2025. IFSCA through press release specified the format for seeking the said informal guidance.
* It may be noted that the applicant can only seek either the No-Action letter or Interpretative Guidance letter under a single request
Source: GIFT IFSCA website [Press Release dated January 1, 2025.
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