Wednesday, 8 April 2015

Securities and Exchange Board of India and the Reserve Bank of India issue guidelines for international financial services centres



 
To make India an International Financial Centre like Dubai and Singapore, the Finance Minister, Mr Arun Jaitley, while presenting the Union Budget 2015 on 28 February 2015, announced that appropriate guidelines will be issued to implement International Financial Services Centres (IFSCs) in India.
 
In this regard, the Securities and Exchange Board of India (SEBI) has on 27 March 2015, issued the SEBI (International Financial Services Centres) Guidelines, 2015 (SEBI IFSC Guidelines). These Guidelines have come into force with effect from 1 April 2015.
 
The SEBI IFSC Guidelines aim to provide a framework for setting up stock exchanges, clearing corporations, financial intermediaries, asset management companies and related capital market infrastructure in the IFSC, first of which has come up in Gujarat as Gujarat International Finance Tech City (GIFT).
 
The Reserve Bank of India (RBI) has also issued Foreign Exchange Management (International Financial Services Centre) Regulations, 20151 along with operational guidelines2 (RBI IFSC Guidelines) which prescribe that a financial institution or a branch of a financial institution set up in an IFSC shall be treated as a person resident outside India.
 
This alert summarizes the key features of the SEBI IFSC Guidelines and RBI IFSC Guidelines.

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