IN GIFT IFSC

OVERVIEW

• The Securities and Exchange Board of India (Sebi) is set to ease norms for merchant bankers looking to establish a presence in GIFT City’s International Financial Services Centre (IFSC).
• The regulator plans to waive the requirement for a No-Objection Certificate (NOC) for domestic investment banks, simplifying the registration process.
• This move is expected to support the expansion of merchant bankers in the region, particularly as GIFT City prepares for new listings.

Merchant Banking Growth

• 4 merchant banks registered in GIFT City as of September 2024: ICICI Bank, HSBC, Pantomath Global Financial Services, and SPEC Finance.
• Sebi’s upcoming reforms will lower entry barriers, encouraging more banks and institutions to set up.
• Opportunity for growth: Expansion of investment banking and financial services, driven by new listings in GIFT City.

New Listing Opportunities

• Direct listings: In August 2024, the IFSCA issued final regulations allowing both domestic and foreign companies to list directly on GIFT City exchanges.
• Target: Startups and companies looking to raise global capital through India’s offshore jurisdiction.
• GIFT City provides a competitive edge for international companies to tap into India’s growing financial markets.

Sebi’s Impact on GIFT IFSC

• With lower entry requirements, GIFT City will attract more investment bankers, financial advisors, and market intermediaries.
• Enhanced financial services: Reforms are expected to contribute to a more vibrant capital market, aiding in global fundraising.
• More opportunities for cross-border capital flow as India strengthens its position as a global financial hub.

CONCLUSION

• With Sebi’s reform efforts, GIFT City is set to become a more accessible and attractive destination for financial institutions.
• The move to simplify the entry process and regulations signals a growing confidence in the region’s potential.
• As GIFT City evolves, it is poised to become a central hub for innovation, fostering cross-border investments and enhancing India’s role in the global financial landscape.

About Adi

• We are a One-Stop solution offering a wide range of corporate business services to entities operating out of Gujarat International Finance Tech City (GIFT City IFSC) and across India.
• Our customized solutions range from business set-up, accounting, audit support, tax advisory, legal advisory, secretarial, ROC compliance, SEZ compliance, IFSCA compliance support services and other business auxiliary services.
• We are registered with IFSCA as an ancillary service provider at GIFT CITY-IFSCA.
• We harness our market-leading expertise to help your vision become a thriving reality.