You are here: Home » Markets » News
Business Standard

IFSCA in process to set up International Arbitration Centre in GIFT IFSC

The International Financial Services Centres Authority (IFSCA) is in the process of setting up an International Arbitration Centre in the GIFT IFSC for speedy resolution of any dispute

GIFT City | GIFT City IFSC | International Arbitration Centre

Press Trust of India  |  Mumbai 

Srinivas said there is a huge opportunity in the area of real-time settlement of multi-currency settlement

The International Financial Services Centres Authority (IFSCA) is in the process of setting up an in the GIFT IFSC for speedy resolution of any dispute, its Chairperson Injeti Srinivas said on Friday.

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

"In a financial centre, speedy dispute resolution is very critical. We are making some headway (in that direction) and are close to setting up an in the GIFT IFSC," Srinivas said.

He was speaking at the Confederation of Indian Industry's (CII) financial summit.

The centre will be on the lines of the Singapore International Arbitration Centre, or the London Commercial Arbitration Centre, he said.

Srinivas said the IFSCA has already prepared a proposal and is in discussion with the law ministry to be able to bring this international arbitration.

The unified authority is also looking at setting up the International Bullion Exchange and has already come up with the regulations for it, he said.

Srinivas said BSE, NSE (National Stock Exchange), Central Depository Services Ltd (CDSL), National Securities Depository Ltd (NSDL) and Multi Commodity Exchange of India Ltd (MCX) have come together to establish a holding company for the bullion business in the IFSC.

"They have already floated the subsidiary The Bullion Exchange, which will function as they exchange and also as the clearing and settlement cooperation," he said.

The detail by-laws and the guidelines for the bullion exchange have been brought out, he added.

Srinivas said an effective trade finance arrangement can help small and medium enterprises (SMEs) get access to foreign capital.

"Today, large corporates can access foreign capital and external commercial borrowings but small and medium-sized companies find it very difficult. I feel that the IFSC can become a hub for SMEs to access trade finance," he said.

Srinivas said there is a huge opportunity in the area of real-time settlement of multi-currency settlement.

The NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement) are very effective for domestic for remittances but in terms cross border remittances, there's a huge cost attached to it, he noted.

"We can emerge as a National Financial Laboratory for experimenting capital account convertibility in a phased manner. We are in discussion with the Reserve Bank of India for many of such proposals, including a possibility of having a Central Bank Digital Currency (CBDC) offshore INR," he said.

Srinivas said FinTech is an important area and the authority wants to leverage its strength with respect to cross border FinTech.

"We can become a gateway and we have taken some steps in the direction for foreign FinTech companies looking at market access in India, and for Indian FinTech companies, which are looking at market access overseas," he said.

IFSCA is in the process of building out a FinTech incentive scheme, he added.

(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.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, September 17 2021. 21:35 IST