IFSC in SEZ

  • Defination of IFSC as per SEZ Act: As per Section 2 (q) of SEZ Act, 2005, “International Financial Services Centres” means an International Financial Services Centre which has been approved by the Central Government under sub-section (1) of Section 18 of SEZ Act, 2005.
  • As per Sub section (1) of Section 18 of SEZ Act, 2005, The Central Government may approve the setting up of an International Financial Service Centre in a Special Economic Zone and may prescribe the requirements for setting up and operation of such centre. Provided that the Central Government shall approve only one International Financial Services Centre in a Special Economic Zone.
  • As per Sub section (2) of Section 18 of SEZ Act, 2005, The Central Government may, subject to such guidelines as may be framed by the Reserve Bank, the Securities and Exchange Board of India, the Insurance Regulatory and Development Authority and such other concerned authorities, as it deems fit, prescribe the requirements for setting up and the terms and conditions of the operation of Units in an International Financial Services Centre. Accordingly Stock Exchange board of India has recently issued guidelines dated 27.03.2015 named as SEBI (International Financial Services Centres) Guidelines, 2015
  • SEBI (International Financial Service Centres) Guidelines, 2015 has been issued to facilitate and regulate financial services relating to securities market in an International Financial Services Centre set up under section 18 (1) of SEZ Act, 2005
  • Such guidelines will facilitate setting up and operations of units in country’s first IFSC at GIFT City, Gujarat.
  • SEBI (International Financial Service Centres) Guidelines, 2015 shall come into force w.e.f April 01, 2015
  • Replace as: RBI would permit the setting up of IFSC Banking units (IBUs) in International Financial Services Centres (IFSC) by banks in accordance with RBI regulations relating to Financial Institutions issued vide notification no. FEMA.339/2015 - RB dated March 02,2015.
  • IRDA of India would allow Life and Non-life Insurance services, health Insurance services and reinsurance services to set up a branch in IFSC.
  • Such guidlines would be referred to as Insurance Regulatory and Development Authority of India (International Financial Services Centre) Guidelines, 2015.
  • Insurance Regulatory and Development Authority of India (International Financial Services Centre) Guidelines, 2015 shall come into force w.e.f. April 06,2015.