Govt. expands financial services scope at IFSC
- The government has expanded the scope of activities that can be undertaken at the International Financial Services Centre (IFSC)
- services such as bookkeeping, and accounting have now been included in it.
Key Highlights
- As per a gazette notification issued by the Ministry of Finance, various services, including
- Book-keeping
- Accounting
- Taxation
- Financial crime compliance has been included as part of financial services.
- Financial services shall be offered by units in an International Financial Service Centre regulated by the International Financial Services Centres Authority (IFSCA)
- They offer to non-residents whose business is not set up either by splitting up of business already in existence in India
- Or reconstructing/reorganising of business already in existence in India
- The notification stipulates that these units should not offer services by way of transferring or receiving existing contracts or work arrangements from their group entities in India.
International Financial Services Centre
- An IFSC enables bringing back the financial services and transactions that are currently carried out in offshore financial centres by Indian corporate entities
- And overseas branches/subsidiaries of Financial Institutions (such as banks, insurance companies, etc.) to India.
- It offers a business and regulatory environment that is comparable to other leading international financial centres in the world like London and Singapore.
- IFSCs are intended to provide Indian corporates with easier access to global financial markets, and to complement and promote further development of financial markets in India.
- The first IFSC in India has been set up at the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar.
Prelims Takeaway
- GIFT City
- IFSCs