IFSCA, the unified regulator, is set to initiate discussions with entrepreneurs who are looking for global operations to set up such financial services at IFSC.
“The move will help Indian players, especially both financial and non-financial services players, to make foreign investments in Indian IFSC and develop new line of business,” Dipesh said. ShahExecutive Director International Financial Services Center Authority,
As per the new foreign investment rules, financial services (F)S and non-FS entities in India can make foreign investments in FS, excluding banking and insurance, subject to fulfillment of certain conditions.
Further, to expedite and facilitate investment in an entity in IFSC, the approval of the domestic financial services regulator should be fixed within 45 days of the application, failing which it will be deemed approved and direct investment in IFSC allowed. Is. Even if the condition of net profit during the last three financial years is not fulfilled.
Earlier, Indian entities engaged in the FS sector were allowed to make FDI in the FS sector only.
“This is a path breaking reform by the government and reserve Bank of India Which will facilitate ease of doing business for financial services activities in GIFT IFSC,” said Shah, executive director.
Portfolio investment outside India is permitted for Indian companies listed on the basis of the net worth of the company. In addition, a person resident in India can contribute to an investment fund or special purpose vehicle set up in IFSC in the form of Foreign Portfolio Investment (OPI).
About three weeks ago Prime Minister Modi sought to double down on India’s efforts to onshore multi-billion financial services businesses, which are otherwise carried from Hong Kong, Dubai and Singapore as their homes in Asia.
IFSC has already opened banking units of Deutsche Bank, JP morgan and MUFG, and launched India International Bullion Exchange in GIFT – IFSC.