Zee Media Bureau
New Delhi/Gandhinagar: India's first International Financial Services Centre (IFSC) at GIFT City in Gujarat has become operational with Finance Minister Arun Jaitley unveiling the rules and regulations for this global financial hub.
The regulations are aimed at creating a vibrant IFSC on the lines of those in Dubai and Singapore and check the flight of trading in rupee and Indian securities to such offshore financial hubs.
Here are five things you want to know about the IFSC.
1. IFSC rules allow companies incorporated outside India to raise money in foreign currencies by issuance and listing of their equity shares on stock exchanges within the IFSC.
2. Individual and institutional investors from India and abroad, including NRIs, would be allowed to trade.
3. The IFSC regulatory regime allows Indian and foreign stock exchanges to set up separate bourses within IFSC as subsidiaries.
4. The capital and other requirements have been relaxed for some time for exchanges, clearing corporations and depositories to set shop in the IFSC.
5. Mutual funds and Alternative Investment Funds set up in the IFSC can also invest in the securities listed there.
With PTI Inputs