GIFT INTERNATIONAL FINANICAL SERIVCES CENTRE

Development Presentation

Dec. 2022
 Vision of the Prime Minister for GIFT IFSC
1
“The vision of India's future is associated with the GIFT City”

“GIFT City is an important gateway to connect India with

global opportunities. When you integrate with GIFT City, you
will integrate with the whole world."

2
"IFSCA will not only become an enabler but will also support
innovation and will also act as a catalyst for growth
opportunities."

Hon’ble Prime Minister in GIFT IFSC

29th July 2022
India’s International Finanical Services Centre (IFSC): Key Features

Dedicated & Unified

Full-fledged financial ecosystem
Financial Regulator
with global connects
(IFSCA)

Separate Financial GIFT Best-in-class regulations

Jurisdiction within India International (Internationally Aligned)
(Full Convertibility) Financial
. Services Centre

Sovereign support, including

Attractive Tax Regime special carve outs from
domestic laws
 GIFT IFSC: Government of India Initiative
The latest Global Financial Centers Index, London Report (March 2022) puts IFSC in GIFT City at the top
amongst 15 centers globally, which are likely to become more significant over the next 2 to 3 years

IFSC Authority Act, IFSCA notified 20+

1ST Commercial building
2019 passed by Regulations /Frameworks for
inaugurated at GIFT City
Union Parliament to various financial services

Jan. 2013 April 2015 Dec. 2019 Oct. 2020 Dec. 2022

India’s 1st IFSC became IFSCA assumes power to

operational with RBI, SEBI develop and regulate
and IRDAI notifying IFSCs in India from 1st
regulations Oct 2020
 GIFT CITY: Structure

GIFT CITY

1. Domestic Tariff Area 2. Multi-Service Special

Caters to Domestic Economic Zone (SEZ)
Economy Export Oriented
IT & Finance Hub

Notified as India’s 1st

International Financial Export of IT & Other
Services Centre (IFSC) Services
 INTERNATIONAL FINANCIAL SERVICES
CENTRES AUTHORITY

1 IFSCA has been established as a unified financial regulator by the Government of

India under the IFSCA Act, 2019

The Authority is mandated to develop and regulate Financial Institutions, Financial

2 Services and Financial Products in the International Financial Services Centre (IFSC)
in India

To develop and regulate IFSC’s in India, IFSCA has been vested with powers of four
3 sectoral regulators namely- RBI*, SEBI*, IRDAI* & PFRDA*

*RBI- Reserve Bank of India, *SEBI- Securities and Exchange Board of India, *IRDAI- Insurance Regulatory and Development Authority & *PFRDA- Pension
Fund Regulatory and Development Authority
Overview - IFSC
BUSINESS ACTIVITIES

BANKS CAPITAL MARKET ASSET MANAGEMENT

●Indian banks ●Stock/Commodity Exchanges ●Alternate Investment Fund
●Foreign banks ●Clearing Corporation ●Investment Advisers
●Depository ●Wealth Management
●Broker Dealer ●Portfolio Manager
●Custodial Services

INSURANCE
●Indian Insurer Other Financial Institutions Emerging Activities
●Indian Reinsurer ● Finance Company ● Global Fintech Hub
●Indian Broker ● Global Corporate Treasury ● Global inhouse centres
●Foreign Insurer Centre ● International Bullion Exchange
●Foreign Reinsurer ● International Trade Finance ● Aircraft Leasing & Financing
Services Platform ● Ship Leasing & Financing
● Sustinable Finance
● Professional Service Providers
IFSCA: New Regulatory Architecture
IFSC Regulations Benchmarked with International Best Practices

Issuance and Listing

Banking Regulations Bullion Exchange Global In-House FinTech Entity
of Securities
2020 Regulations 2020 Regulations 2020 Framework 2022
Regulations, 2021

Framework for
Market Infrastructure Framework for
Finance Company Framework For Global Corporate
Institutions Ancillary Services
Regulations, 2021 Aircraft 2022 Treasury Centres in
Regulations 2021 2021
IFSC 2021

International Trade Fund Management Capital Market Registration of Insurance

Financing Services (Regulations) 2022 Intermediaries Insurance Business Intermediary
Platform (ITFS) 2021 Regulations, 2021 Regulations, 2021 Regulations, 2021

Setting up and Framework for

Operations of FinTech Incentive Framework for Ship Global AML, CFT and KYC
Foreign University Scheme 2022 lease 2022 Administrative Office Guidelines 2022
Regulations 2022 2022
Business Highlights: GIFT IFSC Growth in IFSC Firms

$20.8 Bn $ 10 Bn 391

Stock Exchanges Avg. daily Total amount committed by

turnover* in Nov. 2022 Alternative Investment Funds 200% Rise
compared to $ 3.4 Bn in Sept. (AIFs) till Nov. 2022
2020

$ 33 Bn $ 323 Bn
Cumulative Banking transactions till
Total Banking Asset Size in Nov. Nov. 2022 compared to $ 45 Bn in
2022 compared to $ 14 Bn in Sept. Sept. 2020 129
2020

$ 480 Bn 5000+
Cumulative Derivative transactions
Employment in GIFT SEZ in Nov. 2022
by Banks till Nov. 2022 compared to Upto Sept 2020 Upto Nov. 2022
compared to 2500 + employment in
$ 22 Bn in Sept. 2020
Sept. 2020
*Notional Turnover Value
COMPETITIVE TAX REGIME
Overview - IFSC
●100% Tax Exemption (for 10 out of 15 years)

●Minimum Alternate Tax* @ 9%

●No CTT**/STT**/GST**/Stamp Duty

●Withholding tax @4% on interest paid on Debt

Instruments

●Competitive Tax Regime for Funds

●Incentives under Gujarat IT/ITes Policy

(2022-27)

* MAT provisions not applicable for companies opting for concessional tax rate
under Sec. 115 BAA of Income Tax Act, 1961
**CTT- Commodity Transaction Tax, STT- Securities Transaction Tax, GST-
Goods and Service Tax
Banking Ecosystem
1. GIFT IFSC: Banking Ecosystem

Banking Handbook 33 9 Foreign Banks

23

14 14

Number of Banks Banking Asset Size

Upto March 22 Upto Nov. 2022

14 Indian Banks
Capital Market Ecosystem
2. Capital Market Highlights:
Key Developments Two Operational International Exchanges

Retail Indian Investors provided with opportunity to

1 trade in select US Stocks on NSE IFSC platform via
Unsponsored Depository Receipts

Listing by SMEs and

Listing by Special Initial Public Offering
Start-Ups
Purpose Acquisition (IPO) by Indian &
NSE IFSC-SGX Connect Live: Daily Open Interest of $ Company (SPACs) Foreign Cos
2 7 Bn
Issuance and
Listing of
Securities
(Regulations)
India INX Global Access subsidiary of India INX has been
2021
3 granted approval to access all global markets (130 +)
through international brokers Listing of Depository
Environmental, Social, and
Receipts (DRs)
Governance (ESG) Debt Listing of Debt
Securities
Securities
Funds Ecosystem
3. Fund Management

• No. of Fund Management Entities: 47*

• No. of Funds (AIFs): 38
50 12
47
• Total Commitment amount: USD 10.07 45 10.07 Bn
Billion 7.7 Bn
10
40
38
• Large Funds (more than $ 500 Mn) – 35
32 8
Kedaara, Kotak, A91 Partners, Multiples 30
5.8Bn 30
PE and True North
22 24
25 6
4.1 Bn
• Foreign fund: 2 (Light Rock Capital & 20

Investcorp – Private Equity) 15 2.2 Bn 13 13

4

• ADIA, GIC, Temasek, CPPIB have 10

0.8 Bn
2

invested in funds at IFSC 5

1
3 3
0 0 1
0 0 0
• The entire Fund ecosystem is available 31-Oct-20 31-Mar-21 31-Jul-21 31-Dec-21 31-Mar-22 31-Jul-22 30-Nov-22

at IFSC including Trusteeship firms, Fund Management Entities AIF

Custodians, Fund Administrators, Law Capital Commitment (USD Billion)

firms, Auditors etc

*includes 4 Standalone Portfolio Management Services (PMS)

3. Fund Industry Ecosystem:

AIFs ( Venture Capital Funds, Private Equity Funds & Hedge Funds)

Portfolio Managers/Investment Advisors

Insurance Ecosystem
4. Insurance & Reinsurance
Regulatory Ecosystem
• IFSCA (Registration of Insurance
Business) Regulations (Oct 2021)
• IFSCA (Insurance Intermediary)
Regulations, 2021 (Oct 2021)
• IFSCA (Insurance Web Aggregator)
Regulations, (Feb 2022)
Business Activities Enabled
• Internationally aligned insurance
regulations for onboarding global
industry players.
• Introduction of new business such
as Managing General Agents (MGA)
• IFSC Insurance Offices permitted to
do allied activities related to
(re)insurance.
• Enabling retail participation through
Insurance Web Aggregators
Re(insurance) Ecosystem
• Re-insurer: 6
• Intermediaries: 17
• Gross Premium Booked by IIOs: $
158 Mn. (Sept. 2022)
• Re(insurance) premium arranged
by Insurance intermediaries: $ 515
Mn. (Sept. 2022)
Aircraft Leasing Ecosystem
 5. Aircraft Leasing & Financing Hub

 Process and Regulations: Customs, SEZ, DGCA

 Industry: Aircraft Lessors, Engine Lessors,
Airlines, Financiers, Investors, Asset Managers,
360 Degree
Manufacturers
Approach
 Fleet size ~ 700
 Leased fleet ~ 80 %
 Annual lease paid ~ $2 Bn Growing Aviation  18+ Leasing Companies
 Leading Aviation market with Industry Leasing
 11+ Aircrafts Leased
Order Book ~700 Ecosystem
 End Use: Heli-tourism, Flight
Training, Corporate Jets

Legal and
Policy Going
Enablers Forward  Regional Aviation Leasing Hub
 “Aircraft lease” defined as a financial
 Develop complete aviation leasing
product
ecosystem with leading Lessors, Asset
 Tax Incentives announced in Union Budget Managers and Financiers
 IFSCA issued “Aircraft Leasing framework
for Operating and Financial Lease”
FinTech Hub
 6. Creating a world-class FinTech hub

Fintechs & TechFins

 Inter-Operable Regulatory Sandbox
 Direct Authorization with Domestic India Regulators
 Limited-Use Authorization (IoRS)
FinTech Entity FinTech
 IFSCA-MAS (FinTech Bridge with
Framework Bridges
Singapore)
2022

Six Categories of Grants

 Co-working spaces created
 FinTech Startup Grant (FinX Labs operational with 48
 Proof of Concept Grant FinTech Physical seats)
 Green FinTech Grant Incentive Infrastructure  Tie-ups with Incubators
 Listing Support Grants Scheme 2022
 Other Grants

 Flagship Event to establish

Investor Eco-
‘Thought Leadership’ Infinity Forum  Tieups with VCs
system
 Hackathon Series I-Sprint-21  Tieups with Angels, Private
and I-Sprint-22 Equity players.
7. Ancillary Services Ecosystem

Regulatory Ecosystem

1. IFSCA issued Ancillary Services Framework 2021 to develop Professional Services ecosystem in GIFT IFSC
2. Ancillary services include Legal Service, Asset Managers, Auditing & Accounting Firms, Management
Consultancy Service, Trusteeship Services, Secretarial Services, etc.
Growth in Ancillary Ecosystem

• 40 + Ancillary Services firms have been registered with IFSCA

International Collaboration: MoU’s

1. IFSCA is associate member of IOSCO and signatory to IOSCO’s MMoU

2. IFSCA is member of IAIS

Executed Inter-Regulatory MoU’s

ABU DHABI GLOBAL MARKET

LUXEMBOURG: COMMISSION DE DUBAI FINANCIAL SERVICES
SURVEILLANCE DU SECTEUR FINANCIER
FINANCIAL SERVICES REGULATORY AUTHORITY
AUTHORITY (ADGM-FSRA)

QATAR FINANCIAL CENTRE AUTHORITY Singapore

FI SWEDEN
Thank You