Services Centre About GIFT City 2 A Greenfield Smart City developed on 886 Acres of land The financial gateway of India for inbound amp outbound investment Developed by Government of Gujarat and supported by Govt of India ID: 1029268
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1. GIFT City: International Financial Services Centre
2. About GIFT City2A Greenfield Smart City developed on 886 Acres of landThe financial gateway of India for inbound & outbound investment Developed by Government of Gujarat and supported by Govt. of IndiaRanked 1st in the March 2021 report by the Global Financial Centres Index, London as one of the IFSC which could become more significant in next few yearsGovernment of India operationalized GIFT City as an IFSC in 2015
3. Master PlanSouthern Bridge Access RoadBapasitaram JunctionShahpur BridgeBuilding UseCommercial : 67% (42 Mn SqFt)Residential : 22% (14 Mn SqFt)Social : 11% (6 Mn SqFt)Non-Processing areaSEZProcessing areaSEZTotal – 62 Mn SqFt BUA
4. State of Art Infrastructure at GIFT City
5. Water Treatment PlantUtility TunnelDistrict Colling PlantAutomated Waste Collection & Segregation Plant
6. www.giftgujarat.inCity Command and Control Centre (C4)
7. INTERNATIONAL FINANCIAL SERVICES CENTRE (IFSC)
8. International Financial Services Centre at GIFT CityIn India, an IFSC is approved and regulated by the Government of India under the Special Economic Zones Act, 2005Government of India has approved GIFT City as a Multi Services Special Economic Zone (‘GIFT SEZ’) and has also notified this zone as India’s IFSCThe launch of the IFSC at GIFT City is the first step towards bringing financial services transactions relatable to India, back to Indian shoresIFSC unit is treated as a non-resident under extant Foreign Exchange Management regulationsIFSC inIndia
9. Overview - IFSCBUSINESS ACTIVITIESBANKSIndian banks Foreign banksINSURANCEIndian InsurerIndian ReinsurerIndian BrokerForeign InsurerForeign ReinsurerCAPITAL MARKETStock/Commodity ExchangesClearing CorporationDepositoryBroker DealerOther Financial Institutions Finance CompanyGlobal Corporate Treasury CentreInternational Trade Finance Services PlatformASSET MANAGEMENTAlternate Investment FundInvestment AdvisersWealth ManagementPortfolio ManagerCustodial ServicesEmerging ActivitiesGlobal Fintech HubGlobal inhouse centresInternational Bullion ExchangeAircraft Leasing & FinancingAncillary Services/Professional Service Providers
10. Overview - IFSCCOMPETITIVE TAX REGIME100% Tax Exemption (for 10 out of 15 years)Minimum Alternate Tax* @ 9%No CTT**/STT**/GST**/Stamp DutyNo Capital Gain TaxWithholding tax @4% on interest paid on Debt InstrumentsCompetitive AIF Tax RegimeIncentives under Gujarat IT/ITes Policy (2022-27)* MAT provisions not applicable for companies opting for concessional tax rate under Sec. 115 BAA of Income Tax Act, 1961**CTT- Commodity Transaction Tax, STT- Securities Transaction Tax, GST- Goods and Service Tax
11. 3. Cost AdvantageKey Benefits of office at GIFT City1. Unified Regulator2. Tax Regime4. Ease of Doing Business5. High Quality Talent9. Physical & Social Infrastructure8. Walk to work concept7. Proximity to National and International Airport6. Supporting Ecosystem10. High Standard of livingGIFT IFSC
12. IFSC Banking Unit in GIFT IFSC
13. IBUs in GIFT IFSC
14. Regulatory FrameworkIFSCA Banking Regulations 2020 notified IFSCA Banking Handbook issued in Aug 2021, became effective from January 1, 2022.
15. IFSCA Handbook - General Directions (01)Licensing of IBU UnitMinimum Capital of USD 20 mn (Base Capital Requirement) to be maintained at Parent levelUndertaking by the Parent entityNOC from Home regulator)GovernanceParent shall form a Governing Body of the IBU with at least 3 membersGovernance body shall approve frameworks regarding governance, risk management, controls and business strategyControlled and Designated FunctionsControlled functions refers to those functions of an IBU carried out by individuals approved by the Authority such as CEO, Compliance officer, non-executive governanceNOC from Home regulator)
16. IFSCA Handbook - Prudential Directions (02)*With the Authority’s permission, the NSFR and LCR may be maintained at the Parent Bank level*Lender of Last Resort : Not availableCapital Adequacy: IBU to adhere to Capital Adequacy requirements of Home Regulator subject to meeting minimum regulatory capital under IFSCA regulationsLiquidity Coverage Ratio (LCR)* : Higher of Minimum LCR prescribed by Home Regulator or IFSCANet Stable Fund Ratio (NSFR)* :Higher of Minimum NSFR prescribed by Home Regulator or IFSCAReserve Requirement :Exemption from CRR for deposits raised from other than individual resident in India or outside India.Retail Deposit Reserve Ratio (RDRR) on daily basis at 3% of the deposits raised from individuals or Professional clients such as sovereign, , financial institutions as defined in COB Handbook
17. IFSCA Handbook - Conduct of Business Directions (03)Permitted ActivitiesAcceptance of DepositsBorrowing & lendingTrust ServicesCredit EnhancementEquipment Leasing and Hire PurchaseFactoring and Forfaiting ServicesUnderwritingProviding Investment Advisory ServiceTrading and Clearing member of Stock ExchangeActing as FX Prime brokerageReferral ServicesActing as Portfolio ManagerCustodianOTC DerivativeFPIMerchant BankerOther enablersITFS Issuance of CDsStructured DepositsETP & Voice BrokersIFRS Work in ProgressTransfer of Stressed AssetsRegional Administrative Office
18. Key Business opportunities for IBU18IBU may undertake all activities mentioned u/s 3(1)(e) of the IFSCA Act and section 6 of B R Act, 1949 *ECB and Trade financeFactoring services Guarantee and indemnity business Equipment leasingOffer structured depositsCredit Enhancement / InsuranceRisk ParticipationCommercial BankingInvestment BankingAct as Primary DealerDerivatives including NDFs: Market MakerTrading & Clearing members of IFSC Stock Exchanges Raising of CapitalInvestments in global and IFSC exchange Capital MarketPrivate & Wealth Bankingstructured depositsDistributor of MF units, Insurance and other financial productsInvestment advisory servicesRetail BankingUnderwriting the subscription of fundsCustodian of securitiesTrustee and Fiduciary servicesPMSServices Importation of Bullion through IBELeasing, Market Making, Hedging and Trading in Spot/Derivative in BullionBullion Depository Receipt FinancingGold Saving Account & Gold Accumulation Plans (Retail)International Bullion Exchange & Precious Metals FPIEFIReferral ServicesRegional Administrative Office*RemittanceOthers
19. Employment Generation Incentive -50% of one month employment cost to company (one-time)Atmanirbhar Rojgar Sahay (ARS) -Reimbursement of employer contribution to PF upto 12% (5 years)15% of OPEX (available for 5 years)Upto INR 40crs with GFCI>INR 250 cr.Upto INR 20crs with GFCI<INR 250 cr.Capital subsidy – 25% of Eligible CAPEX (one-time)Upto INR 200 crs with GFCI > INR 250crs (Mega Project)Upto INR 50 crs with GFCI < INR 250crs Provision of direct benefit transfers of up to INR 50,000 for courses in information and communication technologyARS and EGI benefit available even for employees working from home within GujaratGovernment of Gujarat IT/ITeS Policy (2022-27)Key Incentiveswww.giftgujarat.in
20. CONTACT US:Gujarat International Finance Tec-City Company Ltd.Reg. Office: EPS - Building no. 49A, Block 49, Zone 04, Gyan Marg, GIFT City, Gandhinagar – 382355. GujaratVisit us: http://www.giftgujarat.in GIFT SEZ LTD. IFSC DepartmentGIFT House, Zonal Facility Center, Road 1-D, Zone - I,GIFT SEZ, GIFT City, Gandhinagar - 382355, Gujarat.Phone: +91 079-61708300 Sandip.shah@giftgujarat.in India's 1st Operational Smart City & IFSC2020