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GIFT City: India’s International Financial Services Centre

The Gujarat International Finance Tec-city (GIFT City) hosts India's premier International Financial Services Centre (IFSC), offering competitive regulation, tax incentives, and global market access under IFSCA

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Banks (International Banking Units) – cross-border banking, treasury, trade finance

Insurance Offices & Brokers – underwriting, risk transfer, insurance distribution, reinsurance,

Global In-house Centres (GICs) – shared services, back-office, fintech support

Services & Entities at GIFT City IFSC

Who operates here and the services they access under IFSCA regulation

Leasing Companies – aircraft and ship leasing financial services

Global Regional Treasury Centre –centralized group treasury operations

Foreign Universities – global higher‑education and research services

Payment System Operators (PSO) –payment gateway, Settlement Services, Cross-Border Payments

Global Administrative Offices (GAOs) – accounts administration, treasury management, trade finance support

Representative Offices – client liaison, market research, business development

Non-Banking Financial Companies (NBFCs) – lending, factoring & forfeiting, investment & security operations, Derivative trading & risk management

International Trade Finance Service Platform (ITFS) - Supply chain financing, digital trade finance

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Fund Management Entities (FMEs) – AIFs, PMS, Venture Capital Scheme, Exchange Traded Fund, Investment Trust, ETF, Family Investment Funds (FIFs)

Services & Entities at GIFT City IFSC

Who operates here and the services they access under IFSCA regulation

Investment Banker and Advisers – Listing Process, Capital Raising, Debt Syndication, Underwriting, M&A, Financial Advisory

Stock Exchange– India International Exchange (India INX), NSE International Exchange (NSE IFSC / NSE IX), India International Bullion Exchange (IIBX)

Listing Activity –Initial Public Offering (IPO), equity listing, debt listing, private placement listing, primary listing, secondary listing, rights issue listing

Book-keeping, Accounting, Taxation and Financial Crime Compliance( BATF) Services Providersaccounting services, book-keeping, financial reporting, tax advisory, regulatory compliance, Audit Support, Anti-Money Laundering (AML)

FinTech Activity – digital payments, blockchain solutions, regtech services, AI-based analytics, cross border fintech services

Broker-Dealers– capital markets access, execution, advisory

Global Access Provider (GAP) –market connectivity, cross-border trading access, brokerage facilitation, investor onboarding, Clearing & Settlement Access

Clearing and Settlement Services– foreign currency settlement services, real time settlement, trade settlement

Credit Rating Agencies (CRAs) and Research Entities - credit assessment, risk evaluation, rating issuance, financial research, market intelligence,

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Eligibility: Indian resident HNIs may invest offshore subject to LRS limit of USD 250,000 per annum and FEMA rules

Allowed channels: IFSCA-registered funds via Retail and Non-Retail schemes; PMS through IFSCA-registered Fund Management Entities

Eligible fund types: mutual funds, venture capital schemes, alternative investment structures

Compliance: adhere to FEMA regulations and LRS documentation and reporting requirements

Benefits in GIFT City: regulatory clarity, tax incentives, diversified asset exposure for Indian HNIs

Summary: use IFSCA-registered vehicles within USD 250,000 LRS cap while ensuring FEMA compliance

Indian HNIs: Offshore Investment Eligibility & Opportunities

Channels, eligible funds, compliance limits and GIFT City benefits for Indian residents

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Access to IFSCA-registered funds and Fund Management Entities (FMEs)

Tax advantages: TDS exemption on mutual fund investments and tax-free interest on deposits

Open foreign-currency accounts with International Banking Units (IBUs)

Participate in Alternative Investment Funds (AIFs) and portfolio management services

Operate within favorable regulatory frameworks to optimize global portfolios

Maintain compliance while leveraging cross-border banking and investment opportunities

NRIs & OCIs: Investment & Banking Access at GIFT City

Key services, regulatory access and tax advantages for cross-border investors

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Investor types: global citizens, foreign banks, FinTechs, institutional investors

Fund categories: Authorised FMEs for accredited investors; schemes for venture capital, retail, restricted investors

Minimum thresholds: accredited investor entry USD 75,000 to USD 250,000

Entity options: International Banking Units (IBUs) or Global In‑house Centres (GICs)

Benefits: regulatory clarity, streamlined compliance, tax incentives

Compliance: due diligence and adherence to IFSCA, home and Indian regulations required

Summary: choose structure (FME, IBU, GIC) based on investor profile, capital threshold and cross‑border compliance

GIFT City IFSC: Investor Structures & Compliance

How global investors, banks and FinTechs can enter via funds, IBUs or GICs while meeting IFSCA and home‑jurisdiction rules

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Authorized scope: IBUs operate in freely convertible foreign currencies under IFSCA, regulated as non-resident entities under FEMA

Client eligibility: Indian HNIs and global investors, residents and non-residents can use foreign currency accounts

Core services: foreign currency accounts, trade finance, loans against FCNR deposits, wealth management

Cross-border efficiency: streamlined FX transactions and trade settlement for global clients

Compliance & capital: banks must meet capital and compliance requirements per IFSCA framework

Value proposition: consolidated foreign-currency banking, investor access, and regulatory clarity in GIFT City

International Banking Units (IBUs): Cross‑Border Banking Hub

IFSC-authorized foreign/Indian bank units in GIFT City serving global & Indian clients in foreign currency

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Exchanges: NSE IX, India INX, and India International Bullion Exchange (IIBX)

Broker‑Dealers licensed by IFSCA operate on these exchanges

Investor eligibility: Indian residents, NRIs, global citizens, and institutional investors

Products: global equity, debt, commodity, currency derivatives, and bullion

IIBX: trading in Gold, Silver, other bullion; net worth thresholds waived to broaden participation

Compliance: mandatory KYC, AML, FEMA adherence and exchange/IFSCA norms

Outcome: seamless capital market access within GIFT City ecosystem

Broker‑Dealers: GIFT City Market Access

Trading via NSE IX, India INX and India International Bullion Exchange (IIBX)

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Eligibility: IFSCA-registered Investment Advisers and Fund Management Entities (FMEs) serving resident and non-resident investors including HNIs, NRIs, corporates, startups, global entities

Minimum ticket: USD 75,000 per PMS offering

Investment scope: access to domestic, IFSC, and foreign jurisdictions with diversified asset allocations

Tax treatment: Capital gains taxed at 20% with indexation benefits for long-term holdings

Compliance & oversight: mandatory KYC, AML, and regulatory compliance under IFSCA; professional portfolio governance

Client benefit: professionally managed portfolios aligned with global best practices

PMS in GIFT City: Eligibility, Scope, Tax & Compliance

IFSCA-registered advisers and FMEs offering professionally managed, cross-jurisdictional portfolios

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Core activities: IPO underwriting, bond issuances, M&A advisory, structured fund‑raising

Client eligibility: Indian HNIs, NRIs, global investors, institutional clients

Market access: Transactions executed under GIFT City’s IFSCA regulatory framework

Investor protections: Capital Market Intermediaries regulations enforced by IFSCA

Compliance essentials: KYC, AML standards and applicable repatriation rules for seamless capital flow

Summary: IFSCA‑registered bankers enable diversified capital raising and cross‑border investment under robust investor safeguards

Investment Banking via IFSCA-Registered Firms

Capital market access in GIFT City for issuers and investors

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Core services: trade finance, lending, factoring, syndication, investment in AIFs

Client eligibility: Indian resident HNIs, NRIs, global entities, banks (subject to IFSCA & RBI rules)

Enable access to international markets via GIFT City's favorable regulatory environment for wealth management and FIFs

Operational pillars: KYC, AML, capital adequacy to ensure prudent practices and market integrity

Supports comprehensive financial planning and family investment funds (FIFs) under IFSCA oversight

NBFCs in GIFT City: Roles & Investor Access

How NBFCs enable cross-border finance, wealth services and regulated access

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Offerings: life, health, property, casualty insurance, and corporate risk management solutions

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Eligible clients: non-resident Indians, global citizens, institutional clients; services in freely convertible foreign currencies

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Restriction: Indian resident HNIs currently restricted from direct insurance access in GIFT City under prevailing regulations

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Compliance framework: mandatory KYC and AML norms enforced by IFSCA

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Benefits: tax incentives and streamlined governance attract international clients

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Summary: IFSC-registered insurers offer broad cross-border products with currency flexibility, strict compliance, and incentives; Indian resident HNIs remain excluded

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Insurance & Reinsurance in GIFT City: Offerings and Eligibility

IFSC-registered carriers serve global clients in foreign currency with strict compliance and tax incentives

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Adhere to IFSCA, RBI, and SEBI frameworks

Implement robust KYC, AML, and CFT controls

Comply with FEMA and Liberalised Remittance Scheme (LRS) limits for activities related to mainland India

Maintain proper licenses, documentation and periodic reporting

Ensure alignment with home jurisdiction regulations for investors

Adopt transparent reporting to protect investors and audit readiness

Use periodic reviews and internal controls for operational resilience

Regulatory Compliance & Operations for IFSC Participants

Key requirements under IFSCA for smooth cross‑border activity. RBI, FEMA and SEBI for activities related to mainland India

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Significant advantages in cost efficiency and scale

Enhanced international capital access and growth potential

Compelling hub for international financial services

Suitable for expansion of cross-border products

Outcome & opportunity: value proposition

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Alignment with IFSC compliance mandates required

Robust KYC/AML and operational controls expected

Licensing and regulatory approvals for activity scope

Ongoing reporting and governance obligations

Strategic requirements: compliance & due diligence

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Indian HNIs and domestic institutional investors

Global fintechs and offshore entities

Fund managers, banks, insurance firms, advisers

Institutional investors seeking diversified access

Who can participate: investor mix

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Progressive regulatory environment for international finance

Tax incentives and cost-efficiency for operators

Access to global capital markets and counterparties

Operational flexibility across banking, insurance, funds

Platform strengths: IFSC advantages

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Summary & Strategic Outlook: Investing in GIFT City

Progressive IFSC, tax incentives, global market access, and operational flexibility for diverse investors