Page 3 - Ifsc

RBI permits international banking units at IFSC to settle NDDCs in rupee

The Reserve Bank on Tuesday permitted international banking units (IBUs) in GIFT City in Gujarat to settle non-deliverable foreign exchange derivative contracts (NDDCs) in Indian rupee. So far, derivatives are cash-settled in foreign currency. As per the notification, Authorised Dealer (AD) Category-I banks operating IBUs can offer NDDCs involving the Indian rupee to resident non-retail users for hedging. Such transactions shall be cash settled in Indian rupee. "The flexibility of cash settlement of NDDCs transactions between two AD Cat-I banks, and between an AD Cat-I bank and a person resident outside India in INR or any foreign currency," it said. This will help develop the onshore rupee NDDC market and provide residents with the flexibility to efficiently design their hedging programmes, it said. The RBI's decision to allow banks to offer Indian residents rupee NDDCs will help eliminate arbitrage between domestic and overseas markets. Banks in India, which operate Internation

IFSC relaxation may boost trade in foreign stocks at the GIFT City

RBI removed requirement of repatriating funds lying idle in FCA accounts

RBI removes restrictions on individuals from opening interest-earning FCAs

The long-awaited amendment by the RBI now puts IFSC at par with other jurisdictions when it comes to remittances

RBI's wider NDF access may require foreign exposure proof, say bankers

An IFSC Banking Unit or "IBU" is a bank permitted by the Reserve Bank of India to operate from an International Financial Services Centre (IFSC)

Direct tax: Budget gives a blueprint for sustained high-growth trajectory

Presently, no TDS is required on interest payable in the case of listed dematerialised securities

Govt paves way for IFSC units to issue P-notes to foreign investors

With an aim to boost business activities in the international financial hub GIFT IFSC, the government in the Budget paved the way for IFSC units to issue participatory notes or offshore derivative instruments to foreign investors. Participatory notes (P-notes) are issued by registered foreign Portfolio Investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process. Till December 2022, the value of P-note investments in Indian markets -- equity, debt, and hybrid securities -- was at Rs 96,292 crore, data with the Securities and Exchange Board of India (Sebi) showed. Finance Minister Nirmala Sitharaman in her Budget speech on Wednesday recognised "offshore derivative instruments (ODIs) as valid contracts" in order to enhance business activities in the Gujarat International Finance Tec-City (GIFT City). In line with the Budget's announcement, it is likely that ...

Budget 2023: GIFT City gets a big boost as govt announces several sops

The Budget provided acquisition financing by units of foreign banks set up at the IFSC-a move that will bring down the cost of financing for outbound mergers and acquisitions (M&A)

RBI circular permits resident entities to hedge gold price risks at IFSC

The Reserve Bank on Monday permitted resident entities to hedge their exposure to price risk of gold on exchanges in the International Financial Services Centre (IFSC). Resident entities in India are currently not permitted to hedge their exposure to price risk of gold in overseas markets. "On a review, it has been decided to permit eligible entities to hedge their exposure to price risk of gold on exchanges in the IFSC recognised by the International Financial Services Centres Authority (IFSCA)," the RBI said in a circular. An announcement in this regard was made by Reserve Bank Governor Shaktikanta Das while unveiling the bi-monthly monetary policy last week. Hedging refers to the activity of undertaking a derivative transaction to reduce an identifiable and measurable risk.

Indian entities can hedge gold price risk at IFSC, says RBI Guv Das

Indian entities can hedge their exposure to gold price risk in overseas markets on recognised exchanges in the International Financial Services Centre, Gujarat, said RBI Governor Shaktikanta Das

A step-to-step guide to transferring Amazon Pay balance to bank account

Note, however, that you can only do this if you have completed your KYC

ESMA withdraws recognition granted to Indian clearing corporations

Move on account of lack of cooperation arrangements between the EU regulator and Indian authorities

Insurance regulator Irdai proposes changes to reinsurance regulations

Seeks to revise order of preference while placing reinsurance business

Two years on, Sebi's sandbox initiative yet to find its feet

Most applications have either been withdrawn or stand rejected

FSDC discusses ways to ease inter-regulatory issues at IFSC-GIFT City

Council held meeting in Mumbai on Thursday, chaired by Union Finance Minister Sitharaman

India now in league of nations that shape global financial trends: PM Modi

Modi launches India's first international bullion exchange in Gujarat

Explained: How will India's International Bullion Exchange (IIBX) work

India's International Bullion Exchange (IIBX) will be open for jewellers with a net worth of Rs 25 crore and above to participate

Overture from foreign varsities in response to education policy push

While foreign universities are still non-committal on setting up campuses here, more delegations of higher education experts are expected to visit India to explore possibilities accorded by the NEP

Investing in global stocks through IFSC: Here's what investors should know

A certain number of NSE IFSC depository receipts are required to make up one underlying share

DBS Bank India migrates to new IFSC and MICR codes of erstwhile LVB

Following the amalgamation with DBIL, the IFSC & MICR codes of all branches of erstwhile LVB have changed. While the new codes have been active since October 25, 2021, the older IFSC codes will remain valid until February 28, 2022, to ensure customers' convenience and ease of transition. Customers will be required to use the new DBS IFSC code from March 1, 2022, onwards to receive funds through NEFT/RTGS/IMPS.The change was communicated to customers through physical letters, emails, and SMS as well as at the branches. They were requested to share the new IFSC code with business partners, associates and vendors to update their records, recurring payments and receivables well in time. All existing cheques issued to the third party will have to be replaced with new cheques before February 28, 2022. Any cheque with old MICR codes presented after the aforementioned date will not be honoured.New cheque books (with new MICR code) have been available since 1st November 2021. Customers ..

Bulking up IFSC: A wide-ranging expansion of its remit expected in Budget

FY23 will be aimed at making IFSC the centre to use rupee as a freely convertible currency