International Fin Services Centre regulations next month

To create International Financial Services Centres in India on the lines of Singapore and Dubai, the government will come out with detailed regulations next month, with GIFT City in Gujarat set to be the first IFSC.
Presenting the Union Budget for 2015-16, Finance Minister Arun Jaitley today said that appropriate regulations for IFCs would be issued in March.
"Even though India produces some of the finest financial minds, including in international finance, they have few avenues in India to fully exhibit and exploit their strength to the country's advantage," he said.
Under the new regime, rules and regulations different from those applicable outside these IFSCs.

"GIFT in Gujarat was envisaged as IFC (International Finance Centre) that would actually become as good an IFC as Singapore or Dubai, which, incidentally, are largely manned by Indians.
"The proposal has languished for years. I am glad to announce that the first phase of GIFT will soon become a reality. Appropriate regulations will be issued in March," Jaitley said.

GIFT Company Ltd's MD & Group CEO Ramakant Jha said IFSC regulations is a much needed step to save billions of dollars worth financial services business that India is losing out to other global hubs.
Gujarat International Finance Tec-City (GIFT City) would be the country's first IFSC.

"An estimated Rs 1,334 crore per day or Rs 2 lakh crore per year, for trading in rupee derivatives trading, is going to locations outside India.
"A substantial part of this trading can be captured by Indian firms, if appropriate regulatory and tax regime exists. A global financial SEZ/hub in India would also act as a major driver for the 'Make in India' efforts of the government of India," he noted.
According to him, creation of the IFSC would have a direct effect on the Indian economy through increased business growth leading to the creation of employment opportunities and significant contribution to India's GDP.

Leading bourse BSE's Managing Director and Chief Executive Officer Ashishkumar Chauhan said an international finance centre in Gift city is a welcome move.
"Setting up of IFC in Gift city was a part of the vision of Prime Minister Narendra Modi which was supported by BSE wholeheartedly.
"This would help establishing an IFC which can compete on rules, regulations and ease of business with other IFC such as Hong Kong, Singapore, Dubai and London," he said.