This is about international financial sevices centre

1. GIFT INTERNATIONAL FINANICAL SERIVCES CENTRE
Development Presentation
Dec. 2022

2. Vision of the Prime Minister for GIFT
IFSC
“The vision of India's future is associated with the GIFT
City”
“GIFT City is an important gateway to connect India with
global opportunities. When you integrate with GIFT City, you
will integrate with the whole world."
Hon’ble Prime Minister in GIFT IFSC
29th July 2022
"IFSCA will not only become an enabler but will also
support innovation and will also act as a catalyst for growth
opportunities."
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3. Dedicated & Unified
Financial Regulator
(IFSCA)
Attractive Tax Regime
Separate Financial Jurisdiction
within India
(Full Convertibility)
.
Full-fledged financial ecosystem with
global connects
Sovereign support, including special
carve outs from domestic laws
Best-in-class regulations
(Internationally Aligned)
GIFT
International
Financial
Services Centre
India’s International Finanical Services Centre (IFSC): Key Features

4. GIFT IFSC: Government of India Initiative
April 2015 Dec. 2019 Oct. 2020 Dec. 2022
India’s 1st IFSC became
operational with RBI, SEBI
and IRDAI notifying
regulations
IFSC Authority Act, 2019
passed by Union
Parliament
IFSCA assumes power to
develop and regulate IFSCs
in India from 1st Oct 2020
IFSCA notified 20+ Regulations
/Frameworks for to various
financial services
The latest Global Financial Centers Index, London Report (March 2022) puts IFSC in GIFT City at the top amongst 15
centers globally, which are likely to become more significant over the next 2 to 3 years
1ST Commercial building
inaugurated at GIFT City
Jan. 2013

5. GIFT CITY
1. Domestic Tariff Area
Caters to Domestic
Economy
IT & Finance Hub
2. Multi-Service Special
Economic Zone (SEZ)
Export Oriented
Notified as India’s 1st
International Financial
Services Centre (IFSC)
Export of IT & Other
Services
GIFT CITY: Structure

6. INTERNATIONAL FINANCIAL SERVICES
CENTRES AUTHORITY
IFSCA has been established as a unified financial regulator by the Government of
India under the IFSCA Act, 2019
The Authority is mandated to develop and regulate Financial Institutions, Financial
Services and Financial Products in the International Financial Services Centre (IFSC)
in India
To develop and regulate IFSC’s in India, IFSCA has been vested with powers of four
sectoral regulators namely- RBI*, SEBI*, IRDAI* & PFRDA*
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*RBI- Reserve Bank of India, *SEBI- Securities and Exchange Board of India, *IRDAI- Insurance Regulatory and Development Authority & *PFRDA- Pension Fund
Regulatory and Development Authority

7. Overview - IFSC
BUSINESS ACTIVITIES
BANKS
● Indian banks
● Foreign banks
INSURANCE
● Indian Insurer
● Indian Reinsurer
● Indian Broker
● Foreign Insurer
● Foreign Reinsurer
CAPITAL MARKET
● Stock/Commodity Exchanges
● Clearing Corporation
● Depository
● Broker Dealer
Other Financial Institutions
● Finance Company
● Global Corporate Treasury
Centre
● International Trade Finance
Services Platform
ASSET MANAGEMENT
● Alternate Investment Fund
● Investment Advisers
● Wealth Management
● Portfolio Manager
● Custodial Services
Emerging Activities
● Global Fintech Hub
● Global inhouse centres
● International Bullion Exchange
● Aircraft Leasing & Financing
● Ship Leasing & Financing
● Sustinable Finance
● Professional Service Providers

8. IFSCA: New Regulatory Architecture
Banking Regulations
2020
Bullion Exchange
Regulations 2020
Global In-House
Regulations 2020
FinTech Entity
Framework 2022
Issuance and Listing
of Securities
Regulations, 2021
Finance Company
Regulations, 2021
Market Infrastructure
Institutions
Regulations 2021
Framework For
Aircraft 2022
Framework for
Ancillary Services
2021
Framework for
Global Corporate
Treasury Centres in
IFSC 2021
International Trade
Financing Services
Platform (ITFS) 2021
Fund Management
(Regulations) 2022
Capital Market
Intermediaries
Regulations, 2021
Registration of
Insurance Business
Regulations, 2021
Insurance
Intermediary
Regulations, 2021
Setting up and
Operations of
Foreign University
Regulations 2022
FinTech Incentive
Scheme 2022
Framework for Ship
lease 2022
Framework for
Global
Administrative
Office 2022
AML, CFT and KYC
Guidelines 2022
IFSC Regulations Benchmarked with International Best Practices

9. Business Highlights: GIFT IFSC
200% Rise
$20.8 Bn
Stock Exchanges Avg. daily
turnover* in Nov. 2022 compared to $
3.4 Bn in Sept. 2020
$ 323 Bn
Cumulative Banking transactions till Nov.
2022 compared to $ 45 Bn in Sept. 2020
$ 480 Bn
Cumulative Derivative transactions by
Banks till Nov. 2022 compared to $ 22 Bn in
Sept. 2020
5000+
$ 10 Bn
Total amount committed by
Alternative Investment Funds
(AIFs) till Nov. 2022
$ 33 Bn
Total Banking Asset Size in Nov. 2022
compared to $ 14 Bn in Sept. 2020
Employment in GIFT SEZ in Nov. 2022
compared to 2500 + employment in Sept. 2020
*Notional Turnover Value
129
Upto Sept 2020 Upto Nov. 2022
391
Growth in IFSC Firms

10. Overview - IFSC
COMPETITIVE TAX REGIME
● 100% Tax Exemption (for 10 out of 15 years)
● Minimum Alternate Tax* @ 9%
● No CTT**/STT**/GST**/Stamp Duty
● Withholding tax @4% on interest paid on Debt Instruments
● Competitive Tax Regime for Funds
● Incentives under Gujarat IT/ITes Policy
(2022-27)
* MAT provisions not applicable for companies opting for concessional tax rate
under Sec. 115 BAA of Income Tax Act, 1961
**CTT- Commodity Transaction Tax, STT- Securities Transaction Tax, GST- Goods
and Service Tax

11. Banking Ecosystem

12. 1. GIFT IFSC: Banking Ecosystem
9 Foreign Banks
14 Indian Banks
Banking Handbook
14 14
23
33
Number of Banks Banking Asset Size
Upto Sept. 2020 Upto Nov. 2022

13. Capital Market Ecosystem

14. 2. Capital Market Highlights:
Key Developments
1
Retail Indian Investors provided with opportunity to trade in
select US Stocks on NSE IFSC platform via Unsponsored
Depository Receipts
NSE IFSC-SGX Connect Live: Daily Open Interest of $ 7 Bn
Issuance and
Listing of
Securities
(Regulations)
2021
Initial Public Offering
(IPO) by Indian & Foreign
Cos
Listing of Depository
Receipts (DRs)
Listing by Special
Purpose Acquisition
Company (SPACs)
Listing of Debt
Securities
Environmental, Social, and
Governance (ESG) Debt
Securities
Listing by SMEs and
Start-Ups
India INX Global Access subsidiary of India INX has been
granted approval to access all global markets (130 +)
through international brokers
Two Operational International Exchanges

15. Funds Ecosystem

16. 3. Fund Management
• No. of Fund Management Entities: 47*
• No. of Funds (AIFs): 38
• Total Commitment amount: USD 10.07 Billion
• Large Funds (more than $ 500 Mn) – Kedaara,
Kotak, A91 Partners, Multiples PE and True
North
• Foreign fund: 2 (Light Rock Capital & Investcorp
– Private Equity)
• ADIA, GIC, Temasek, CPPIB have invested in
funds at IFSC
• The entire Fund ecosystem is available at IFSC
including Trusteeship firms, Custodians, Fund
Administrators, Law firms, Auditors etc
*includes 4 Standalone Portfolio Management Services (PMS)
0 1
3
13
22
30
47
0 1
3
13
24
32
38
0
0.8 Bn
2.2 Bn
4.1 Bn
5.8Bn
7.7 Bn
10.07 Bn
0
2
4
6
8
10
12
0
5
10
15
20
25
30
35
40
45
50
31-Oct-20 31-Mar-21 31-Jul-21 31-Dec-21 31-Mar-22 31-Jul-22 30-Nov-22
Fund Management Entities AIF Capital Commitment (USD Billion)

17. 3. Fund Industry Ecosystem:
AIFs ( Venture Capital Funds, Private Equity Funds & Hedge Funds)
Portfolio Managers/Investment Advisors

18. Insurance Ecosystem

19. 4. Insurance & Reinsurance
Regulatory Ecosystem Business Activities Enabled Re(insurance) Ecosystem
• IFSCA (Registration of Insurance
Business) Regulations (Oct 2021)
• IFSCA (Insurance Intermediary)
Regulations, 2021 (Oct 2021)
• IFSCA (Insurance Web Aggregator)
Regulations, (Feb 2022)
• Internationally aligned insurance regulations
for onboarding global industry players.
• Introduction of new business such as
Managing General Agents (MGA)
• IFSC Insurance Offices permitted to do allied
activities related to (re)insurance.
• Enabling retail participation through
Insurance Web Aggregators
• Re-insurer: 6
• Intermediaries: 17
• Gross Premium Booked by IIOs: $ 158 Mn.
(Sept. 2022)
• Re(insurance) premium arranged by
Insurance intermediaries: $ 515 Mn. (Sept.
2022)

20. Aircraft Leasing Ecosystem

21. Growing
Industry
Legal and
Policy
Enablers
Going
Forward
Aviation
Leasing
Ecosystem
360 Degree
Approach
Fleet size ~ 700
Leased fleet ~ 80 %
Annual lease paid ~ $2 Bn
Leading Aviation market with Order
Book ~700
“Aircraft lease” defined as a financial product
Tax Incentives announced in Union Budget
IFSCA issued “Aircraft Leasing framework for
Operating and Financial Lease”
5. Aircraft Leasing & Financing Hub
 18+ Leasing Companies
 11+ Aircrafts Leased
 End Use: Heli-tourism, Flight Training,
Corporate Jets
Regional Aviation Leasing Hub
Develop complete aviation leasing ecosystem with
leading Lessors, Asset Managers and Financiers
Process and Regulations: Customs, SEZ, DGCA
Industry: Aircraft Lessors, Engine Lessors, Airlines,
Financiers, Investors, Asset Managers, Manufacturers

22. FinTech Hub

23. FinTech Entity
Framework
2022
FinTech
Bridges
FinTech
Incentive
Scheme 2022
Physical
Infrastructure
Infinity Forum
Investor Eco-
system
6. Creating a world-class FinTech hub
Fintechs & TechFins
 Direct Authorization
 Limited-Use Authorization
Six Categories of Grants
 FinTech Startup Grant
 Proof of Concept Grant
 Green FinTech Grant
 Listing Support Grants
 Other Grants
 Flagship Event to establish ‘Thought
Leadership’
 Hackathon Series I-Sprint-21 and I-
Sprint-22
 Co-working spaces created (FinX Lab
operational with 48 seats)
 Tie-ups with Incubators
 Tieups with VCs
 Tieups with Angels, Private Equity
players.
 Inter-Operable Regulatory Sandbox with
Domestic India Regulators (IoRS)
 IFSCA-MAS (FinTech Bridge with Singapore)

24. 7. Ancillary Services Ecosystem
1. IFSCA issued Ancillary Services Framework 2021 to develop Professional Services ecosystem in GIFT IFSC
2. Ancillary services include Legal Service, Asset Managers, Auditing & Accounting Firms, Management Consultancy Service,
Trusteeship Services, Secretarial Services, etc.
Regulatory Ecosystem
• 40 + Ancillary Services firms have been registered with IFSCA
Growth in Ancillary Ecosystem

25. International Collaboration: MoU’s
Executed Inter-Regulatory MoU’s
ABU DHABI GLOBAL MARKET FINANCIAL
SERVICES REGULATORY AUTHORITY
(ADGM-FSRA)
LUXEMBOURG: COMMISSION DE
SURVEILLANCE DU SECTEUR FINANCIER
QATAR FINANCIAL CENTRE AUTHORITY
FI SWEDEN
DUBAI FINANCIAL SERVICES
AUTHORITY
Singapore
1. IFSCA is associate member of IOSCO and signatory to IOSCO’s MMoU
2. IFSCA is member of IAIS

26. Thank You