Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
Recovery of Shares
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
The International Financial Services Centres Regulatory Authority (IFSCA) is the country’s first and only functioning International Financial Services Centre (GIFT-IFSC). It is overseeing the country’s first and only functioning International Financial Services Centre (GIFT-IFSC). This aims to create a financial environment where world-class services, transparent policies, and ease of doing business come together.
Recently, IFSCA has taken several reform steps, which have made fund management, investment opportunities, and governance structures simpler and more attractive. These changes have modernized the regulatory framework and made GIFT-IFSC more trustworthy and competitive to international investors. In this discussion, we will learn in detail about IFSCA’s vision, key reforms undertaken, GIFT-IFSC’s position in the global competition, and its plans.
The long-term plan of IFSCA is to develop GIFT-IFSC as a world-class financial centre that will provide transparent, reliable, and innovative solutions to investors. It will be easy to invest and do business here, with clear policies and the highest level of technology use.
The organization aims for the regulatory framework of GIFT-IFSC to be on par with top financial Centres such as Singapore, Dubai, or London. A competitive business environment, a fast approval system, and suitable opportunities for a variety of investors are being created. This vision will help develop India’s financial sector and increase the country’s participation in global capital flows.
The IFSCA has introduced several key reforms to make the GIFT-IFSC more efficient and investment-friendly. These changes range from fund management to investor types and governance structures. It has increased business opportunities and made the processes much more flexible.
The new rules have reduced the minimum corpus for non-retail venture capital and restricted schemes from USD 5 million to USD 3 million. This will also allow smaller funds to start operations here. In addition, the period of the private placement memorandum has been extended from 6 months to 12 months. This will provide more flexibility in the time frame for launching schemes.
A special angel investment framework has been introduced to support startups and early-stage businesses. In addition, a separate facility has been created for sovereign wealth funds so that large institutional capital can easily enter. The introduction of a new category of accredited investors allows high-net-worth or experienced investors to participate in specific products, diversifying the investment landscape.
Non-Resident Indian (NRI) and Overseas Citizen of India (OCI) investors will be able to contribute 100%, which will further increase capital inflows from NRIs. At the same time, a “platform play” or third-party fund management model has been introduced, where external fund managers can launch schemes through a fund management entity registered with GIFT-IFSC without opening their own office. This framework has a cap of USD 50 million and strict governance for investor protection.
The new rules will allow venture capital and restricted schemes to make joint investments through Special Purpose Vehicles (SPVs). Investments can be initiated before approval, but term sheets must be submitted within 45 days. This will enable faster decision-making and protect the interests of investors.
Together, these reforms are preparing GIFT-IFSC for international competition and making it more attractive to global investors.
GIFT-IFSC is now better prepared to compete with international financial centres with regulatory reforms. Reduced minimum capital requirements, flexible fund structures, and free access to foreign capital are increasing the attractiveness of the region. Third-party fund management and special investment structures are facilitating the participation of international fund managers.
In addition, a clear tax structure and a fast approval process are increasing investor confidence. GIFT-IFSC is gradually becoming a competitive and credible destination with a combination of world-class infrastructure and technology-driven service delivery. So, not only is foreign direct investment increasing, but it also has a multifaceted impact on the local economy.
GIFT-IFSC will aim to create world-class opportunities in emerging sectors such as green finance, sustainable investment, and digital asset management. The plan is to make the investment process more transparent and efficient through continued policy reforms and the addition of technology-based solutions. Cooperation with regulatory agencies of various countries will be strengthened to enhance international partnerships.
Projects such as infrastructure development, a fast-track licensing system, and skilled manpower development are already underway. So, GIFT-IFSC will be able to emerge as not just a financial centre but a global hub for innovative and sustainable investments.
The recent reforms have taken GIFT-IFSC to new heights, where investors can conduct their activities in a fast, secure, and flexible environment. The policy and structural changes are expected to increase the flow of domestic and foreign capital significantly.
The right direction, regulatory compliance, and strategic planning are essential when you want to start a business or investment in GIFT-IFSC. Enterslice will provide you with complete support from regulatory approvals to business structure formation, everything. Join us now and start your global finance journey.
GIFT-IFSC, or Gujarat International Finance Tec-City International Financial Services Centre, is India's first operational IFSC. It has been set up to bring offshore financial activities to the country. It has international standard regulations, tax benefits, and advanced infrastructure. It attracts foreign and domestic investors, increases capital inflows, and creates employment opportunities. At the same time, it is helping India to take a strong position in the global financial services sector.
IFSCA, or the International Financial Services Centres Authority, is the sole regulatory body of GIFT-IFSC. It formulates policies, licenses, and supervises all financial activities, including banking, insurance, capital markets, and fund management. Through a unified regulatory framework, IFSCA ensures transparency and efficiency. This makes GIFT-IFSC more reliable and competitive for foreign businesses and investors.
The new regulations have reduced the minimum corpus for non-retail venture capital and restricted schemes from USD 5 million to USD 3 million, which reduces the entry barrier. In addition, the tenure of the Private Placement Memorandum has been increased from 6 months to 12 months so that it is easier for fund managers to manage their time. These changes simplify the process of doing business and bring it in line with international standards.
The new rules allow NRI and OCI investors to invest 100% through the FPI route. This will allow NRIs to be more deeply involved in the country's financial system. This initiative is bringing in fresh capital, injecting international experience and expertise into the Indian market, and making GIFT-IFSC more globally competitive.
Platform Play or Third-Party Fund Management is a mechanism where external fund managers can launch restricted schemes using the infrastructure of a registered Fund Management Entity without setting up their own office. There is a cap of USD 50 million and good governance policies, which ensure investor protection. It reduces costs and entry barriers for small and foreign managers.
The Angel Scheme introduced by IFSCA will allow early-stage investors to co-invest capital within a regulated framework. It will provide the necessary initial financing to startups. It also includes transparency and compliance policies to protect investors. This framework will encourage innovation and make GIFT-IFSC a global launchpad for startups.
Through the Special Scheme, venture capital and restricted schemes can co-invest using Special Purpose Vehicles (SPVs). Here, managers can start investing capital before formal approval, provided that term sheets are submitted within 45 days. This provides flexibility for time-sensitive investments while also maintaining monitoring and investor protection.
Recent reforms have made GIFT-IFSC a strong contender among international financial centres. Simplified fund management rules, diversified investor participation, and new structures such as platform play have made it easier to do business. It is gaining global credibility through increased registered FMEs, committed capital, and onshore investment flows
Variable Capital Companies (VCC) structure may be introduced in the future, which will provide more flexible fund models. In addition, work is underway to incorporate fintech and regtech, expand green finance, and develop cybersecurity policies. GIFT-IFSC will remain in tune with global trends by maintaining close cooperation with international financial institutions.
Enterslice provides full advisory services in GIFT-IFSC from inception to operation. This includes regulatory approvals, fund structuring, tax-benefit planning, and ensuring compliance. Leveraging deep financial law knowledge and experience in the IFSCA framework, they ensure smooth entry and sustainable operations for investors. You can realize the full potential of GIFT-IFSC.
The International Financial Services Centres Regulatory Authority (IFSCA) is the country's firs...
Reserve Bank of India (Co-Lending Arrangements) Directions, 2025, issued by the Reserve Bank of...
The Alternative Investment Fund (AIF) market in India is expanding, and there is a need to intr...
The startup ecosystem in India is very energetic and dynamic. Whether it's disruptive technolog...
The importance of NBFCs, or Non-Banking Financial Companies, has increased in the Indian financ...
Are you human?: 1 + 1 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Recently International Financial Services Centres Authority Bill 2019 has been approved by the union cabinet to set...
24 Jun, 2023
9870310368 
8860712800