Mumbai, Nov. 2 -- GIFT City is pursuing a stronger position as an international financial centre through simpler business approvals, wider access to overseas investments and new routes for companies to raise capital. Industry leaders discussed the measures at the Business Standard BFSI Summit in Mumbai, where representatives of the International Financial Services Centres Authority (IFSCA), NSE International Exchange, India INX and Price Waterhouse & Co LLP assessed the centre's progress.
The regulatory framework has expanded beyond conventional capital markets to include banking and other financial services. An IFSCA-nominated development commissioner has been appointed within the special economic zone, reducing the need for entities to secure separate approvals under both the zone and IFSCA frameworks. A single-window system now allows applications for relevant approvals, with letters of approval issued in around 15-16 days on average.
NSE International Exchange said the migration of offshore Nifty trading to GIFT City in 2023 helped establish GIFT Nifty as a platform for international investors. IFSCA and the Securities and Exchange Board of India have formed an implementation group to develop a framework for Indian issuers seeking international capital through GIFT City, with operating guidelines expected soon. Companies and investment bankers have expressed interest, and some issuances have been filed.
The centre has also attracted Indian broking firms offering retail investors access to overseas securities. However, market activity remains at an early stage, with participants calling for stronger inbound and outbound flows, clearer rules for Indian unlisted companies raising funds, and simpler know-your-customer procedures. Restrictions on participation in initial public offerings and limited eligibility for some investor categories remain additional concerns.
Industry representatives identified insurance, aircraft and ship leasing, fund management, exchange-traded funds and emerging financing activities as areas with potential for growth. They also sought a more favourable outbound tax regime and greater coordination between IFSCA and domestic regulators. Regulatory certainty under Indian law, improved infrastructure and consultation with market participants were seen as important to attracting global businesses and expanding the centre's role.
Published by HT Digital Content Services with permission from Construction World.