Finance minister Nirmala Sitharaman has announced a slew of measures to enhance business activities in GIFT IFSC (International Financial Services Centre) in Gujarat including delegating powers under the SEZ Act to IFSCA to avoid dual regulation.
In the Union Budget 2023-24, the government also announced setting up a single window IT system for registration and approval from IFSCA, SEZ authorities, GSTN, Reserve Bank of India, Securities and Exchange Board of India and Insurance Regulatory Development Authority.
It has also proposed to permit acquisition financing by IFSC Banking Units of foreign banks/
A subsidiary of EXIM Bank would be established for trade re-financing,
The government will amend the IFSCA Act for statutory provisions for arbitration, ancillary services, and avoiding dual regulation under SEZ Act.
It will also recognise offshore derivative instruments as valid contracts. “For countries looking for digital continuity solutions, we will facilitate setting up of their Data Embassies in GIFT IFSC,” the finance minister said.