Regulator unveils framework for lawyers, consultants and others at GIFT

Circular covers eligibility and other norms for providing ancillary services in such centres

The regulator for international financial services centres on Wednesday announced a framework for those providing ancillary services in such jurisdictions.
 

The International Financial Services Centres Authority (IFSCA) framework covers services including legal, compliance, secretarial, audit, accounting, consulting and assets management support services among others. The IFSCA is the regulatory body for International Financial Services Centres (IFSCs). The government established it in April 2020.
 

The regulatory body on Wednesday has issued rules for service providers who want to set up operations in such centres.

Any existing or newly incorporated entity set up in the centre can provide these services. An Indian or foreign entity can also provide it by establishing a branch or subsidiary at the centre, according to the circular.

They can provide services to entities already set up there. They can also target foreign entities who are conducting business at the IFSCs or ‘other related activities overseas’.  Services can also be provided to Indian entities setting up at the IFSC or foreign jurisdiction so long as the fees are paid in a freely convertible foreign currency.  The Indian rupee (INR) can be used for meeting administrative expenses.
 

“Service providers shall transact in freely convertible foreign currency only. However, the service providers may defray their administrative expenses in INR by maintaining an INR account,” said the circular.
 

The government has set up the first IFSC at the Gujarat International Finance Tec-City, better known as the GIFT city. It is located in Gandhinagar, Gujarat.