The Gujarat International Finance Tech-city (GIFT) SEZ represents India's inaugural International Financial Services Centre (IFSC) established under the Special Economic Zone Act of 2005. This ambitious project is envisioned as a global hub for financial services, catering to both domestic and international financial enterprises.
GIFT IFSC officially began its operations in April 2015. This initiative aligns with India's broader vision to cultivate a premier global financial services hub, enhancing its competitive position in the international market.
Operating within GIFT IFSC offers a plethora of advantages. Key benefits include:
These benefits collectively enhance the ease of doing business for financial organizations.
Currently, GIFT IFSC hosts over 125 financial entities. These organizations are licensed by prominent Indian financial regulators, including the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Insurance Regulatory and Development Authority of India (IRDAI).
Established in April 2020, the IFSCA acts as a unified authority tasked with developing and regulating financial products, services, and institutions within the IFSC. Its mission is to provide a world-class regulatory environment while promoting ease of doing business by integrating operations across various national financial regulatory bodies.
The IFSCA is headquartered in GIFT City, Gandhinagar, Gujarat. This central location supports its goal of overseeing and streamlining financial regulatory processes within the IFSC.
Prior to the establishment of IFSCA, the regulation of financial activities in IFSCs was managed by India's domestic financial regulators, including the RBI, SEBI, the Pension Fund Regulatory and Development Authority (PFRDA), and the IRDAI. Each body was responsible for specific segments of the financial services sector.
The creation of the IFSCA was motivated by the necessity for enhanced inter-regulatory coordination, given the dynamic nature of business operations in IFSCs. The authority's vision aims to foster an environment conducive to attracting significant global and domestic financial activities.
Q1. What is GIFT SEZ and its significance?
Answer: GIFT SEZ is India's first International Financial Services Centre, designed to be a global hub for financial services, enhancing both domestic and international finance operations.
Q2. When did GIFT IFSC commence operations?
Answer: GIFT IFSC began its operations in April 2015, marking a significant step towards establishing a global financial services hub in India.
Q3. What are the benefits of operating in GIFT IFSC?
Answer: Benefits include a competitive tax regime, single-window clearance, relaxed company law provisions, and access to an international arbitration center, enhancing the ease of doing business.
Q4. How many financial entities operate in GIFT IFSC?
Answer: GIFT IFSC currently hosts over 125 financial entities, licensed by major regulators such as RBI, SEBI, and IRDAI, facilitating diverse financial activities.
Q5. What is the role of IFSCA?
Answer: The IFSCA regulates financial products and services in the IFSC, aiming to provide a world-class regulatory environment and promote ease of doing business.
Question 1: What is the primary purpose of GIFT SEZ?
A) To promote agriculture
B) To serve as a financial services hub
C) To enhance tourism
D) To develop manufacturing industries
Correct Answer: B
Question 2: When was IFSCA established?
A) 2010
B) 2015
C) 2020
D) 2023
Correct Answer: C
Question 3: Which authority regulates financial activities in GIFT IFSC?
A) RBI
B) SEBI
C) IFSCA
D) All of the above
Correct Answer: D
Question 4: Where is the headquarters of IFSCA located?
A) Mumbai
B) Gandhinagar
C) New Delhi
D) Bangalore
Correct Answer: B
Kutos : AI Assistant!
