Gandhinagar: The International Financial Services Centres Authority (IFSCA) was established by the Government of India as a statutory unified regulatory authority on April 27, 2020, and granted the powers of the four domestic financial sector regulators, viz. RBI, SEBI, IRDAI and PFRDA, with the mandate to develop and regulate the financial services market in the International Financial Services Centres in India and for matters connected therewith or incidental thereto.

In the short span of its existence, IFSCA has taken various initiatives to successfully position GIFT-IFSC on the global financial landscape. With its principle-based regulatory framework, instituted with a highly consultative approach and benchmarked with global best practices, alongside the conventional financial businesses, such as banking, capital markets, insurance, etc., IFSCA has also created a niche for itself by enabling alternative lines of business activities in IFSC, such as FinTech, aircraft leasing, global in-house centres, trade financing, etc.

As on June 2022, a total of over 310 entities have set up their operations under the regulatory ambit of IFSCA, exhibiting a remarkable growth of 140% since IFSCA assumed power. Further, 22 banks under IFSCA’s regulatory purview have created a consolidated asset base of approx. USD 32+ Billion while facilitating cumulative banking transactions of approx. USD 207 Billion.

The 2 international stock exchanges in IFSC collectively handle an average daily turnover of approx. USD 11 Billion. All these metrics reflect the momentum and global interest generated by IFSCA, which has also been acknowledged in the Global Financial Centres Index, London in their latest report, wherein GIFT IFSC has been rated at the top 15 centres globally, which are likely to become more significant over the next 2 to 3 years.

PM Modi’s upcoming visit

PM Shri Narendra Modi will visit Gujarat International Finance Tec-City (GIFT City), India’s maiden International Financial Services Centre (IFSC), on July 29, 2022. The occasion will also be graced by Shri Bhupendra Patel, CM of Gujarat, Shri Amit Shah, Union Minister of Home Affairs and Co-operation, Smt. Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs, Shri Kanubhai Desai, Minister of Finance and Energy, Government of Gujarat, Dr. Bhagwat Kishanrao Karad, Union Minister of State for Finance and Shri Pankaj Chaudhary, Union Minister of State for Finance.

PM Modi, during his visit, will lay the foundation stone of the Headquarters Building of the International Financial Services Centres Authority (IFSCA), the unified regulator for the development and regulation of financial products, financial services and financial institutions in International Financial Services Centres (IFSCs) in India. The headquarters building of IFSCA has been conceptualised as an iconic structure, reflective of the growing prominence and stature of GIFT-IFSC as a leading International Financial Centre.

The Prime Minister will launch India International Bullion Exchange (IIBX), India’s first International Bullion Exchange in GIFT-IFSC. IIBX will facilitate efficient price discovery with the assurance of responsible sourcing and quality, apart from giving impetus to the financialisation of gold in India. This shall empower India to gain its rightful place in the global bullion market and serve the global value chain with integrity and quality. This also re-enforces the commitment of the Government of India towards enabling India to be able to influence global bullion prices as a principal consumer.

The Prime Minister will also launch NSE IFSC-SGX Connect. Under this Connect all orders on NIFTY derivatives placed by members of Singapore Exchange Limited (SGX) will be routed to and matched on the NSE-IFSC order matching and trading platform. The said Connect will deepen liquidity in derivative markets at GIFT-IFSC, bringing in more international participants and creating a positive impact on the financial ecosystem in the GIFT-IFSC. Broker-Dealers from India and across international jurisdictions are expected to participate in large numbers for trading derivatives through the Connect.

Several other key announcements will also be made during the visit of the Prime Minister.