The GIFT International Financial Services Centre ("GIFT IFSC") established in Gandhinagar, Gujarat is India's first international financial services center with the intent to cater 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 is a unified regulator is also headquartered 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.
Infosys founder NR Narayana Murthy visits GIFT City
June 27, 2025 – Infosys founder, N.R. Narayana Murthy, visited GIFT City, where he praised its rapid development into a world-class financial tech ecosystem. He commended the global infrastructure on site, the growing presence of international firms, and GIFT City's potential to emerge as a global FinTech powerhouse. During his visit, he met key officials from GIFT City and IFSCA, highlighting the importance of academia-industry collaboration in sustaining long-term growth. He also interacted with students from local schools and offshore university campuses, encouraging them to "dream big, work hard, and strive for excellence". Further, he also noted the newly inaugurated Infosys development centre, capable of hosting over 1000 employees for its role in delivering advanced TechFin solutions globally.
Source: The Economic Times [dated June 27, 2025]
Visit by Sri Nirmala Sitaraman to GIFT City
June 26, 2025 - Union Finance Minister Nirmala Sitharaman, during her visit to GIFT City's IFSC in Gandhinagar on June 26–27, 2025, urged swift implementation of reforms to elevate its global competitiveness and align it with India's "Viksit Bharat @ 2047" vision. She emphasized leveraging India's technological strengths and vast domestic market to attract foreign capital—particularly from sovereign and pension funds—as well as high-net-worth individuals. Sitharaman also advocated for scaling up the India International Bullion Exchange, aligning talent development initiatives to IFSC growth, and enhancing cost effectiveness and ease of doing business. Her vision extends beyond finance, calling for GIFT City's transformation into a sustainable, smart city with world-class infrastructure to draw global professionals.
Source: Live Mint [dated June 26, 2025]
24th IFSCA Authority Meeting
June 24, 2025 – At its 24th meeting, the IFSCA approved several key initiatives to strengthen GIFT IFSC's regulatory and operational landscape. These included the introduction of a Framework for Transition Bonds to help hard-to-abate sectors raise capital for decarbonization efforts, and amendments to enable Third Party Fund Management Services, allowing registered entities to manage funds on behalf of global managers without requiring their physical presence. They also cleared the IFSCA (TechFin and Ancillary Services) Regulations, 2025, aimed at consolidating and streamlining the provision of technology and support services in financial markets, enhancing innovation and global competitiveness.
Additionally, the authority adopted updated procedures for regulation-making to further institutionalize stakeholder consultations, extending them to include subsidiary instruments like circulars and guidelines. In a significant recognition of its growing global role, IFSCA was also inducted as a Governing Member of the International Organisation of Pension Supervisors (IOPS), reflecting its expanding influence in international financial regulation.
Source: GIFT IFSCA website [Press release dated June 24, 2025]
Amendment to the 'Directions to IBUs for operations of the Foreign Currency Accounts (FCA) of Indian resident individuals opened under the Liberalised Remittance Scheme (LRS)'
June 23, 2025 – The IFSCA, through a circular dated June 23, 2025, has amended its earlier directions (issued on December 13, 2024) concerning the operation of Foreign Currency Accounts by Indian resident individuals under the LRS scheme in IFSC Banking Units (IBUs). The amendments require IBUs to obtain a declaration from the account holders confirming that funds used or remitted from their FCAs are either for the purposes initially declared under LRS or for purposes permitted under LRS.
Source: GIFT IFSCA website [Circular dated June 23, 2025]
First Direct Listing on NSE IX in GIFT City Expected in Next Two Quarters
June 20, 2025 - NSE International Exchange (NSE IX) in GIFT City anticipates enabling the first direct listing of stocks within the coming two quarters, as the necessary regulations are currently being finalized. The exchange is actively engaging with both Indian and international companies for these potential listings, expecting a robust response from its growing base of registered Indian and foreign investors. This development builds upon the successful trading operations at NSE IX, which commenced in July 2023, now boasting monthly trade volumes of approximately $105-110 billion and bond listings totaling $70-80 billion. Separately, the National Stock Exchange (NSE) itself awaits a no-objection certificate from SEBI for its own Initial Public Offering (IPO), with preparatory work for its Draft Red Herring Prospectus (DRHP) yet to commence.
Source: The Hindu Business Line [dated June 20, 2025]
NSE International Exchange Signs Strategic MoU with Cyprus Stock Exchange
June 16, 2025 - NSE International Exchange (NSE IX) in GIFT City and the Cyprus Stock Exchange (CSE) have entered into a strategic Memorandum of Understanding (MoU) aimed at fostering cross-border financial collaboration between the Indian and European capital markets. This pivotal agreement was formalized in Limassol during Prime Minister Narendra Modi's official visit to Cyprus. The MoU outlines key areas of cooperation, including cross and dual listings of financial instruments, joint development of innovative financial products, collaborative research and knowledge-sharing, capacity building programs, and enhanced fintech engagement. This alliance is designed to strengthen financial ties between India and Cyprus, supporting India's strategic vision for GIFT City as a premier global financial hub and promoting capital market innovation and global investor access for both nations.
Source: The Economic Times [dated June 16, 2025]
Fund Houses Plan Retail-Focused Schemes at GIFT City for Overseas Play
June 16, 2025 - At least five mutual fund (MF) houses, including prominent names like Mirae Asset Investment Managers (India) and Tata Asset Management, are poised to introduce retail-focused schemes in the Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC). This strategic move aims to cater to both Non-Resident Indians (NRIs) and resident Indian individuals seeking exposure to international markets. These upcoming schemes would represent the first retail offerings from GIFT IFSC, which has historically attracted interest predominantly from alternative investment funds. While two fund houses have solidified their launch plans for the coming months, three additional entities have approached the IFSCA for approvals. Investors will have the opportunity to utilize their annual Liberalised Remittance Scheme (LRS) limit of $250,000 to invest through these new schemes.
Source: Business Standard [dated June 16, 2025]
NTPC Secures $750 Million Loan from IFSC Banking Units of Bank of Baroda and HDFC Bank
June 13, 2025 - NTPC has successfully secured a $750 million foreign currency loan from the IFSC Banking Units (IBUs) of Bank of Baroda and HDFC Bank, situated in GIFT City. This unsecured, syndicated External Commercial Borrowing (ECB) facility comprises a $500 million base amount and a $250 million greenshoe option, featuring a door-to-door tenor of 10 years and an average maturity of 7 years. The proceeds from this loan are earmarked to finance NTPC's capital expenditure for ongoing and forthcoming capacity expansion projects, including crucial flue gas desulphurisation (FGD) systems, renewable energy, and hydro-based initiatives, as well as to refinance existing ECBs, all in strict adherence to Reserve Bank of India's (RBI) ECB guidelines. This landmark transaction represents the largest foreign currency lending extended by Bank of Baroda and marks HDFC Bank's inaugural foreign currency loan to NTPC, further supporting NTPC's ambitious target of achieving a diversified energy portfolio exceeding 130 GW by 2032 with a strong emphasis on reducing its carbon footprint.
Source: The Financial Express [dated June 13, 2025]
IFSCA Announces Fee Structure for KYC Registration Agencies in IFSC
June 13, 2025 - The International Financial Services Centres Authority (IFSCA) has formally released the fee structure for entities seeking registration as KYC Registration Agencies (KRAs) within the IFSC. This announcement follows the notification of the IFSCA (KYC Registration Agency) Regulations, 2025, on April 16, 2025. The prescribed fees include an Application Fee of USD 1,000, a Registration Fee of USD 5,000, and an Annual Fee of USD 5,000. The Application Fee is due upon submission of the application. Following the intimation of provisional or in-principle approval from the Authority, the Registration Fee must be paid by the applicant within 15 days. The Annual Fee is payable subsequent to obtaining registration, calculated on a pro-rata basis for the remaining months of that financial year, and is due within 15 days of registration. For all subsequent financial years, the annual fee is required by April 30th of the respective financial year (e.g., the annual fee for FY 2026-27 is due by April 30, 2026).
Source: GIFT IFSCA website [Circular dated June 13, 2025]
S&P Global Ratings Singapore PTE Becomes First Foreign Credit Rating Agency to Set Up Base in GIFT City
June 11, 2025 - S&P Global Ratings Singapore PTE Ltd has established its presence in GIFT City, Gujarat, marking it as the largest foreign credit rating agency to operate from this international financial hub. The IFSCA recently granted the necessary permission for its operations. This development signifies a notable achievement for GIFT City, as S&P Global becomes the first major international credit rating agency to set up shop in the special economic zone. This follows the precedent set by CareEdge Global IFSC Ltd, a subsidiary of CARE Ratings Ltd, which became the first overall credit rating agency to establish a presence in GIFT City in October 2024 and has already commenced releasing sovereign ratings for global economies.
Source: The Hindu Business Line [dated June 11, 2025]
HFTs Shift to GIFT City to Save on Stamp Duty and Transaction Costs
June 11, 2025 - High-frequency trading (HFT) firms, traditionally favoring proximity to stock exchanges for optimal latency, are increasingly opting to establish offices in GIFT IFSC. Two prominent HFTs, Jump Trading and Tower Research, have already commenced operations there, with further firms expected to follow suit. This migration is primarily driven by substantial cost efficiencies derived from a 100 percent stamp duty refund on broking transactions offered by the Gujarat government to eligible brokers in GIFT City.
This incentive is particularly advantageous for HFTs, given their extensive trading volumes, where transaction costs can accumulate significantly. While these firms remain regulated by SEBI and conduct trades on domestic exchanges, the recent streamlining of the stamp duty refund mechanism has greatly enhanced the appeal of this location over the past 18 months. To capitalize on these benefits, HFTs are required to register their share-broking offices within GIFT City, carry out actual trading operations from there, maintain minimum staffing levels, ensure robust connectivity and infrastructure (including disaster recovery), and physically locate all traders, dealers, and associated trading infrastructure within the city. This governmental initiative is designed to reduce transaction costs and solidify GIFT City's standing as a premier international financial services hub for stockbroking activities. Additionally, SEBI recently permitted stockbrokers to operate in GIFT City IFSC without requiring prior approval.
Source: Business Standard [dated June 11, 2025]
IFSCA Invites Bids for New Enterprise Resource Planning (ERP) System
June 11, 2025 - The IFSCA is initiating the implementation of a comprehensive, modern Enterprise Resource Planning (ERP) System. This strategic undertaking aims to significantly enhance internal process efficiencies, ensure seamless integration across its various departments, and bolster data-driven decision-making capabilities within the Authority. The forthcoming ERP platform is designed to streamline core functions such as Finance, Human Resources, Procurement, Project Management, and Asset Management, emphasizing automation, transparency, and operational agility. To this end, IFSCA has issued a Request for Proposal (RFP) to engage an IT System Integrator (SI) responsible for the comprehensive design, development, implementation, operation, and maintenance of this new ERP System.
Source: GIFT IFSCA website [Press Release dated June 11, 2025]
Banks from France, UAE Queue Up at GIFT City
June 10, 2025 - GIFT City, Gujarat, is currently experiencing a notable increase in interest from foreign banks seeking to establish a presence. Specifically, Credit Agricole Corporate and Investment Bank, Natixis, and Societe Generale are the first three financial entities from France to express intent to set up IFSC Banking Units (IBUs), while two banks from the United Arab Emirates (UAE)—First Abu Dhabi Bank PJSC and Mashreq Bank PSC—have also submitted similar applications. This influx follows Qatar National Bank, which became the first financial institution from the Middle East and Africa region to establish a base in GIFT City last month.
Currently, a total of 31 banks operate IBUs in GIFT City, with 14 being foreign banks. Since Yes Bank established the first IBU in October 2015, the IBUs collectively held cumulative assets of $88.5 billion as of March 2025, encompassing investments, trade finance, commercial loans, retail loans, and interbank placements.
Source: The Hindu Business Line [dated June 10, 2025]
IFSCA Issues Request for Proposal for Digital Regulatory Reporting (DRR) System
June 09, 2025 - The IFSCA is embarking on a significant initiative to implement a cutting-edge Information Technology (IT) platform. This ambitious project is designed to enhance the Ease of Doing Business (EoDB) for all stakeholders, reduce compliance costs for supervised entities, and solidify IFSCA's position as a progressive regulator equipped with a best-in-class Supervisory Technology (SupTech) system. The envisioned SupTech system will holistically cover administrative, compliance, supervision, and enforcement frameworks pertinent to its regulated entities. To achieve this, IFSCA has issued a Request for Proposal (RFP) to engage an IT Solution Provider (SP) responsible for the comprehensive design, development, implementation, operation, and maintenance of its Digital Regulatory Reporting (DRR) Solution.
Source: GIFT IFSCA website [Press Release dated June 09, 2025]
Amendment to Framework for Finance Company/Finance Unit Undertaking Global/Regional Corporate Treasury Centres Activities
June 09, 2025 - The IFSCA has officially amended its 'Framework for Finance Company/Finance Unit undertaking the activity of Global/ Regional Corporate Treasury Centres' (GRCTC Framework). This amendment, effective June 9, 2025, introduces a crucial proviso under clause 3(2)(ii) of the GRCTC Framework. Responding to valuable stakeholder feedback, the Chairperson of the Authority is now empowered to grant a relaxation from a specific condition for a period not exceeding one year from the commencement of operations, upon a formal request from an applicant. This relaxation will be judiciously considered based on the permissible activities proposed by the applicant and their anticipated business volume.
Source: GIFT IFSCA website [Circular dated June 09, 2025]
Infosys Sets Up Development Centre in GIFT City with 1,000 Employee Capacity
June 07, 2025 - Infosys has inaugurated a new development centre within GIFT City designed to accommodate over 1,000 employees in a hybrid working model. This state-of-the-art TechFin hub is poised to deliver advanced digital solutions to global Banking, Financial Services, and Insurance (BFSI) clients, with a specialized focus on areas such as digital banking and regulatory affairs. The facility is conceived as a future-ready hybrid workplace, prioritizing enhanced productivity and fostering social capital among its workforce. Leveraging cutting-edge technologies, including artificial intelligence (AI) and generative AI (GenAI), cloud computing, application programming interface (API), cybersecurity, and blockchain, the center aims to provide seamless cross-border digital services and reinforce client proximity, thereby strengthening India's standing as a global financial technology powerhouse.
Source: The Economic Times [dated June 07, 2025]
IFSCA Lays Down Policies for Payment Service Providers in International Payment Systems
June 06, 2025 - The IFSCA has issued new policies governing the participation of Payment Service Providers (PSPs) in international payment systems, effective June 6, 2025. These policies clarify that PSPs may participate as members of international payment systems for transactions with banks and financial institutions outside IFSC, provided they secure prior approval from the Authority. Furthermore, any international payment system facilitating payments among PSPs or other financial institutions within IFSC that consequently affect domestic transactions will necessitate authorization from IFSCA under the Payment and Settlement Systems Act, 2007.
PSPs are permitted to join such international payment systems for payments with other PSPs or IFSC financial institutions only after ensuring the system complies with the aforementioned authorization requirement and obtaining prior IFSCA approval. All PSPs are mandated to review their involvement in international payment systems in light of these new policies and notify the Department of Banking Supervision of their compliance within 30 days of the circular's issuance, also submitting a comprehensive list of all international payment systems they participated in as of May 31, 2025.
Source: GIFT IFSCA website [Circular dated June 06, 2025]
Modifications to International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022
June 05, 2025 - The IFSCA has announced significant modifications to its Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF), and Know Your Customer (KYC) Guidelines, 2022. Effective June 5, 2025, these revisions incorporate amendments from the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, specifically Gazette notification G.S.R. 419 (E) dated July 19, 2024, alongside other related adjustments.
Key changes include the removal of "city council tax receipts" as a valid document for proof of address. The guidelines now mandate that customers providing alternative proof of address (other than Post Office or bank statements) must submit updated Officially Valid Documents (OVDs) with their current address within three months. Furthermore, the process for Regulated Entities to retrieve and utilize KYC Identifiers from the Central KYC Records Registry (CKYCR) for client onboarding and ongoing due diligence has been detailed and updated. Specific entities, including Payment Service Providers, Finance Companies, and IFSC Banking Units, among others, are now required to comply with these enhanced KYC Identifier requirements, ensuring timely updates to CKYCR. Revisions also clarify the submission of KYC records to CKYCR for Indian nationals and the acceptance of documents for foreign nationals. All other provisions of the Guidelines remain unchanged.
Source: GIFT IFSCA website [Circular dated June 05, 2025]
Amendments to the ITC(HS) Codes for the Import of Gold and Silver Through IIBX
June 02, 2025 - The circular announces critical amendments to the ITC (HS) codes applicable to the import of gold and silver via the India International Bullion Exchange (IIBX). These adjustments stem from Notification No. 08/2025-26, issued by the Directorate General of Foreign Trade (DGFT) on May 19, 2025, which involved the deletion of certain existing codes and the introduction of new ones under the Import Policy Conditions, in alignment with the Finance Act, 2025. The circular specifically modifies previous IFSCA circulars concerning the import of gold and silver by Qualified Jewellers, entities holding India-UAE CEPA TRQ, and Indian Banks, by updating the permissible ITC(HS) codes for various forms of gold and silver. These amendments are effective immediately.
Source: GIFT IFSCA website [Circular dated June 02, 2025]
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