Cash and cash equivalents will include major foreign currencies as may be decided by the clearing corporation from time to time, term deposit receipts and bank guarantees issued by bank branches located in IFSC.
"Clearing corporations in IFSC shall be permitted to accept cash and cash equivalents, Indian securities held with foreign depositories, foreign securities including units of liquid mutual funds and gold, as eligible collateral for trades in all product categories," Sebi said in a circular
However, cash and cash equivalents would form at least 50 per cent of the total liquid assets at all times, it added.
GIFT (Gujarat International Finance Tec-City) has been set up by the state government as India's first IFSC that brings together world class infrastructure, connectivity, people and technology on a single platform for businesses across the world.
IFSC at GIFT City is probably the first such centre to be launched after the 2008 global financial crisis.