India’s first IFSC becomes operational at GIFT city: India’s first International Financial Services Centre (IFSC)

India’s first International Financial Services Centre (IFSC) at GIFT city near Gandhinagar in Gujarat became operational on April 10, 2015 and Finance Minister Arun Jaitely unveiled rules and regulations for this global financial hub.
ESBI chairman U K Sinha, RBI deputy governor R Gandhi, IRDAI Chairman T Vijayan, Gujarat Chief Minister Anandiben Patel and Gujarat Finance Minister Suarabh Patel were also present
The regulations are aimed at creating a vibrant IFSC on the lines of those in Dubai and Singapore and check the flight of trading in rupee and Indian securities to such offshore financial hubs. IFSC rules allow companies incorporated outside India to raise money in foreign currencies by issuance and listing of their equity shares on stock exchanges within the IFSC, where individual and institutional investors form India and abroad, including NRIs, would be allowed to trade.

The IFSC regulatory regime allows Indian and foreign stock exchanges to set up separate bourses within IFSC as subsidiaries, while market entitles from India and abroad would be allowed to operate there by providing issuance and trading in depository receipts and debt securities of domestic as well as overseas companies.

The capital and other requirements have been relaxed for some time for exchanges, clearing corporations and depositories to set shop in the IFSC. Mutual funds and alternative investment funds set up in the IFSC can also invest in the securities listed there.