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IFSCA issues norms for setting up, operating ITFS to provide trade finance

The International Financial Services Centres Authority (IFSCA) on Monday released a framework for setting up and operating an international trade finance services platform

financial services | IFSC

Press Trust of India  |  New Delhi 

The need for setting up International Financial Services Centres in India was felt in the mid-2000s.

The International Centres Authority (IFSCA) on Monday released a framework for setting up and operating an international trade finance services platform (ITFS) to provide trade finance services at international centres (IFSCs).

The framework will enable exporters and importers to avail various types of trade finance facilities at competitive terms, for their international trade transactions through a dedicated electronic platform ITFS, an official statement said.

This will help in their ability to convert their trade receivables into liquid funds and to obtain short-term funding, IFSCA said.

"This framework will provide an opportunity to the participants to avail trade finance facilities for trade transactions such as export invoice trade financing, reverse trade financing, bill discounting under letter of credit, supply chain finance for exporters, export credit (packing credit), insurance/ credit guarantee, factoring and any other eligible product, on the ITFS platform," it said.

IFSCA was established in April last year under the International Centres Authority Act, 2019. It is headquartered at GIFT City, Gandhinagar.

IFSCA is a unified authority for the development and regulation of financial products, financial services and financial institutions at the International Financial Services Centre (IFSC) in India. Currently, GIFT is the maiden international financial services centre in India.

Prior to the establishment of IFSCA, the domestic financial regulators RBI, Sebi, PFRDA and IRDAI regulated the business in .

The main objective of IFSCA is to develop a strong global connect and focus on the needs of the Indian economy as well as to serve as an international financial platform for the entire region and the global economy as a whole.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mon, July 12 2021. 19:38 IST