- a) The International Financial Services Centre in India located in Gandhinagar, Gujarat.
Enrich Your Learning:
What is the International Financial Services Centre?
- International Financial Services Centre (IFSC) is set up at Gujarat International Finance Tec-City (GIFT City) near Gandhinagar. The aim is to establish a Global Financial Hub in India. It caters to customers outside the jurisdiction of the domestic economy, dealing with flows of finance, financial products and services across borders.
- London, New York and Singapore are examples of Global Financial Hubs.
- The Special Economic Zone (SEZ) Act 2005 allows setting up an IFSC in an SEZ or as an SEZ after approval from the central government.
What are the Location factors for an IFSC?
- The rational legal regulatory framework, Sustainable local economy, Stable political environment, Developed infrastructure, Strategic location and Good quality of life.
What are the services an 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.
- 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.
- Risk management operations such as insurance and reinsurance.
- Merger and acquisition activities among trans-national corporations.
GIFT-IFSC found a place in the top 15 emerging Global Financial Centres across the world. In September 2017 edition of Global Financial Centres Index 22 (GFCI) – London, GIFT-IFSC was featured at the tenth place.
The government announced a Unified Regulator for IFSC in India.