In a strategic move to enhance the financial landscape, the union government has announced the incorporation of additional financial services within the International Financial Services Centre (IFSC) situated in GIFT City. The development, revealed through a recent Gazette notification, marks a significant expansion of services catering to bookkeeping, accounting, taxation, and financial crime compliance.
The Gazette notification, issued under the authority granted by sub-clause (xiv) of clause (e) of sub-section (1) of section 3 of the International Financial Services Centres Authority Act, 2019 (50 of 2019), reflects the government's commitment to fortify the capabilities of IFSCs.
The Gazette notification
According to the notification, these financial services will be provided by units within an International Financial Service Centre, regulated by the International Financial Services Centres Authority. Importantly, these services are designated for non-residents whose business is not established through the splitting up, reconstructing, or reorganizing of existing businesses in India.
The notification explicitly states, "The units shall not offer the services by way of transferring or receiving existing contracts or work arrangements from their group entities in India." This measure ensures that the newly introduced financial services within IFSC do not interfere with established business structures within the country.
This strategic expansion aligns with the government's vision to position GIFT City's IFSC as a robust financial hub, offering a comprehensive suite of services to international clients while maintaining regulatory prudence.
"As GIFT City continues to evolve as a global financial destination, these additional financial services are poised to attract a diverse range of businesses seeking a dynamic and well-regulated financial ecosystem," said an official of GIFT City.