{"id":27009,"date":"2024-07-13T23:20:14","date_gmt":"2024-07-13T17:50:14","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=27009"},"modified":"2025-10-09T17:22:21","modified_gmt":"2025-10-09T11:52:21","slug":"international-financial-services-centre-in-gift-city","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/international-financial-services-centre-in-gift-city\/","title":{"rendered":"International Financial Services Centre in GIFT City"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69eaf108c7761\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69eaf108c7761\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/international-financial-services-centre-in-gift-city\/#Overview_on_International_Financial_Services_Centre_in_GIFT_City\" title=\"Overview on International Financial Services Centre in GIFT City\">Overview on International Financial Services Centre in GIFT City<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/international-financial-services-centre-in-gift-city\/#Resident_Indians_and_the_IFSC\" title=\"Resident Indians and the IFSC\u00a0\">Resident Indians and the IFSC\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/international-financial-services-centre-in-gift-city\/#Services_Provided_by_an_International_Financial_Services_Centre_in_GIFT_City\" title=\"Services Provided by an International Financial Services Centre in GIFT City\">Services Provided by an International Financial Services Centre in GIFT City<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/international-financial-services-centre-in-gift-city\/#What_Changed_related_to_CAs_in_GIFT_City\" title=\"What Changed related to CAs in GIFT City\">What Changed related to CAs in GIFT City<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/international-financial-services-centre-in-gift-city\/#ICAI_clearing_the_way_for_CAs_to_work_in_GIFT_City\" title=\"ICAI clearing the way for CAs to work in GIFT City\">ICAI clearing the way for CAs to work in GIFT City<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/international-financial-services-centre-in-gift-city\/#Implications_Considerations-_CAs_in_GIFT_City\" title=\"Implications &amp; Considerations- CAs in GIFT City\">Implications &amp; Considerations- CAs in GIFT City<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/international-financial-services-centre-in-gift-city\/#Impact_for_Chartered_Accountants\" title=\"Impact for Chartered Accountants:\">Impact for Chartered Accountants:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/international-financial-services-centre-in-gift-city\/#Finance_Minister_Launches_Foreign_Currency_Settlement_System_FCSS_at_GIFT_IFSC_Gujarat\" title=\"Finance Minister Launches Foreign Currency Settlement System (FCSS) at GIFT IFSC, Gujarat\">Finance Minister Launches Foreign Currency Settlement System (FCSS) at GIFT IFSC, Gujarat<\/a><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-27010\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/Gift-City-.jpg\" alt=\"Gift City\" width=\"1138\" height=\"1770\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/Gift-City-.jpg 823w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/Gift-City--193x300.jpg 193w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/Gift-City--658x1024.jpg 658w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/Gift-City--768x1194.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/Gift-City--800x1244.jpg 800w\" sizes=\"(max-width: 1138px) 100vw, 1138px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Overview_on_International_Financial_Services_Centre_in_GIFT_City\"><\/span><span style=\"color: #000080;\"><strong>Overview on International Financial Services Centre in GIFT City<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>An International Financial Services Centre (IFSC) is a jurisdiction that caters to customers outside the domestic economy, dealing with the flow of finance, financial products, and services across borders. The Gujarat International Finance Tec-City (GIFT City) is India&#8217;s first IFSC, located in Gandhinagar, Gujarat.<\/p>\n<p>NRIs and foreign investors enjoy favorable tax rates on investments made in the IFSC this is the basic Benefits for NRIs and Foreign Investors, Numerous AIFs have been established in GIFT City, specifically catering to NRIs, providing them with diversified investment opportunities.<\/p>\n<p>Investing in AIFs in GIFT City offers several benefits, including access to diverse and sophisticated investment products, tax incentives, and the ability to invest in a jurisdiction designed to attract international finance.<\/p>\n<p>NRIs and foreign investors can also engage in derivative trading within the IFSC, benefiting from the regulatory and tax advantages provided by the GIFT City framework.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Resident_Indians_and_the_IFSC\"><\/span><span style=\"color: #000080;\">Resident Indians and the IFSC\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Resident Indians do not receive tax breaks for investing through the IFSC. They can remit money to the IFSC through the RBI&#8217;s LRS, but investments can only be made in securities issued by entities outside India. Indian residents must report these holdings in the foreign assets schedule of their income tax return. Derivative trading is not permitted under LRS for resident Indians.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Services_Provided_by_an_International_Financial_Services_Centre_in_GIFT_City\"><\/span><span style=\"color: #000080;\"><strong>Services Provided by an <\/strong><strong>International Financial Services Centre in GIFT City<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Global Tax Management and Cross-Border Tax Liability Optimization Services i.e A business opportunity for financial intermediaries, accountants, and law firms.<\/li>\n<li>Merger and Acquisition Activities services For trans-national corporations.<\/li>\n<li>Fund-Raising Services to For individuals, corporations, and governments.<\/li>\n<li>Asset Management and Global Portfolio Diversification Services for pension funds, insurance companies, and mutual funds.<\/li>\n<li>Risk Management Operations services Including insurance and reinsurance.<\/li>\n<li>Wealth Management &amp; Comprehensive wealth management solutions.<\/li>\n<li>Corporate Treasury Management Operations services Involving fund-raising, liquidity investment and management, and asset-liability matching.<\/li>\n<\/ul>\n<p>GIFT City&#8217;s IFSC provides a conducive environment for international financial activities, benefiting both NRIs and foreign investors with its regulatory and tax incentives. However, resident Indians face limitations and reporting requirements when investing through the IFSC.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Changed_related_to_CAs_in_GIFT_City\"><\/span><span style=\"color: #000080;\"><strong>What Changed related to CAs in GIFT City<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Institute of Chartered Accountants of India has relaxed its exclusivity norms to allow CAs to set up \u201cmirror firms\u201d in the GIFT IFSC without jeopardizing their exclusivity rights in domestic India. A \u201cmirror firm\u201d means a firm in GIFT International Financial Services Centre that mirrors (or replicates) a CA\u2019s existing firm in India, with similar partner composition, but functioning under IFSC rules.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"ICAI_clearing_the_way_for_CAs_to_work_in_GIFT_City\"><\/span><span style=\"color: #000080;\"><strong>ICAI clearing the way for CAs to work in GIFT City<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Relaxation of Exclusivity Rule : Earlier, a CA who was a partner in one firm could not join another firm, due to rules ensuring exclusivity (especially for RBI and CAG empanelment). ICAI has clarified that setting up a mirror firm in GIFT IFSC (International Financial Services Centre) will not violate exclusivity in India.<\/p>\n<ul>\n<li>CA firms across India can now establish mirror firms in GIFT City to provide bookkeeping, accounting, taxation, and financial crime compliance services (BATF). This enables firms to operate internationally without losing domestic opportunities.<\/li>\n<li>ICAI has allowed CAs to obtain COP in other countries as well, so they can work globally.<\/li>\n<li>ICAI also announced that Indian Chartered Accountants can now hold dual Certificates of Practice (COPs), which allows them to operate not only in India but also in certain foreign jurisdictions (e.g. UK, Australia, Canada, New Zealand) without losing their Indian COP or affecting their domestic engagements.<\/li>\n<li>With GIFT IFSC introducing BATF regulations, GIFT City aims to emerge as a global financial hub. This will create significant job opportunities for CAs.<\/li>\n<li>ICAI is aligning with international practices, as many countries like the UK, Australia, Canada, and New Zealand allow similar global practice rights.<\/li>\n<li>India has about 4.30 lakh CA members and 3.0 lakh CA firms, expected to grow rapidly. CAs with multiple COPs will be able to serve clients both domestically and globally.<\/li>\n<\/ul>\n<p>These steps are intended to boost GIFT City as a global financial hub and attract CA firms nationwide to establish operations there.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Implications_Considerations-_CAs_in_GIFT_City\"><\/span><span style=\"color: #000080;\"><strong>Implications &amp; Considerations- CAs in GIFT City<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<td><span style=\"color: #000080;\"><strong>Positive Outcomes \/ Opportunities<\/strong><\/span><\/td>\n<td><span style=\"color: #000080;\"><strong>Potential Concerns \/ Things to Watch Out<\/strong><\/span><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>CA firms can expand operations into GIFT IFSC without losing domestic practice rights.<\/td>\n<td>Regulatory clarity will be needed on handling cross-jurisdictional compliance, tax, and oversight.<\/td>\n<\/tr>\n<tr>\n<td>Greater flexibility and global reach (dual COPs) for Indian CAs.<\/td>\n<td>Need to ensure that domestic exclusivity rules for RBI \/ CAG empanelments remain safeguarded.<\/td>\n<\/tr>\n<tr>\n<td>May encourage more CAs \/ firms to locate parts of their operations in IFSC, aiding the vision of GIFT City as a financial hub.<\/td>\n<td>Mirror firms must adhere to IFSC\/BATF regulations, which may differ from domestic norms.<\/td>\n<\/tr>\n<tr>\n<td>Boosts competitive positioning of Indian CA firms in the global market.<\/td>\n<td>Transition and implementation logistics (technical, licensing, regulatory) need to be ironed out.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Impact_for_Chartered_Accountants\"><\/span><span style=\"color: #000080;\"><strong>Impact for Chartered Accountants:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>More flexibility to operate globally.<\/li>\n<li>Opportunity to serve international clients via GIFT City.<\/li>\n<li>Boost in employment and firm growth.<\/li>\n<li>Indian CAs can now compete with global firms without restrictions of exclusivity.<\/li>\n<\/ul>\n<h2 data-start=\"138\" data-end=\"235\"><span class=\"ez-toc-section\" id=\"Finance_Minister_Launches_Foreign_Currency_Settlement_System_FCSS_at_GIFT_IFSC_Gujarat\"><\/span><span style=\"color: #000080;\"><strong data-start=\"142\" data-end=\"235\">Finance Minister Launches Foreign Currency Settlement System (FCSS) at GIFT IFSC, Gujarat<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"237\" data-end=\"404\">Finance Minister has officially launched the Foreign Currency Settlement System at the GIFT International Financial Services Centre in Gujarat.\u00a0Previously, all foreign currency transactions at IFSC were routed through correspondent banks located abroad, which typically required 36\u201348 hours for settlement.<\/p>\n<p data-start=\"584\" data-end=\"795\">The newly introduced FCSS will now enable seamless, real-time settlement of foreign currency transactions within GIFT IFSC itself, eliminating dependency on overseas correspondent banking networks.\u00a0With this development, GIFT IFSC joins a select group of global financial centres that offer local foreign currency settlement, enhancing India\u2019s competitiveness as an international financial hub.\u00a0This initiative is expected to:<\/p>\n<ul data-start=\"1039\" data-end=\"1258\">\n<li data-start=\"1039\" data-end=\"1106\">\n<p data-start=\"1041\" data-end=\"1106\">Significantly reduce transaction costs and settlement time,<\/p>\n<\/li>\n<li data-start=\"1107\" data-end=\"1187\">\n<p data-start=\"1109\" data-end=\"1187\">Boost liquidity and efficiency in financial operations at GIFT IFSC, and<\/p>\n<\/li>\n<li data-start=\"1188\" data-end=\"1258\">\n<p data-start=\"1190\" data-end=\"1258\">Strengthen India\u2019s position in the global financial ecosystem.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Overview on International Financial Services Centre in GIFT City An International Financial Services Centre (IFSC) is a jurisdiction that caters to customers outside the domestic economy, dealing with the flow of finance, financial products, and services across borders. The Gujarat International Finance Tec-City (GIFT City) is India&#8217;s first IFSC, located in Gandhinagar, Gujarat. NRIs and &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9909],"tags":[10162],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27009"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=27009"}],"version-history":[{"count":6,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27009\/revisions"}],"predecessor-version":[{"id":30167,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27009\/revisions\/30167"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=27009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=27009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=27009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}