Gujarat International Finance Tec-City – International Financial Services Centre (GIFT IFSC)

27.01.2024

Gujarat International Finance Tec-City – International Financial Services Centre (GIFT IFSC) , Daily Current Affairs , RACE IAS : Best IAS Coaching in Lucknow 

Why in the news?

Recently, the Government allowed the direct listing of securities by public Indian companies on International Exchanges of GIFT IFSC.

Key Point

• In pursuance of the announcement on July 28, 2023, by Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman to enable direct listing of Indian Companies at GIFT- IFSC exchanges in the first phase , The Department of Economic Affairs (DEA), Ministry of Finance, has amended Foreign Exchange Management (Non-debt Instruments) Rules, 2019, and notified the ‘Direct Listing of Equity Shares of Companies Incorporated in India on International Exchanges Scheme’.

About GIFT IFSC:-

• It is the maiden international financial services centre of India that connects India with global opportunities.
• It aims to attract the top talent in the country by providing the finest quality of life.
• It enables the Indian economy to connect with the global financial system and allows a seamless and easy flow of global capital into India.
• It aspires to cater to the dynamic development needs of GIFT IFSC, the unified statutory regulatory authority, the International Financial Services Centres Authority (IFSCA) has taken significant steps in accelerating global sustainable capital flows by providing an agile and world-class regulatory and business environment in GIFT IFSC.
• GIFT IFSC aspires to become India’s gateway for inbound and outbound requirements of international financial services.

Benefits:-

• Central Government’s proactive support to develop the country as a hub of international financial services, the GIFT City has emerged as the preferred location for national and multinational firms.
• Tax exemptions also make it lucrative for investment.
• Job creation will occur in huge numbers.

                                                           Source: PIB