Millennium Post

Sebi, RBI to issue IFSC guidelines this month: Sinha

The new guidelines for setting up the country's first International Financial Services Centre (IFSC) in Gujarat's GIFT City will be put in place this month, markets regulator Sebi said on Friday.

"GIFT has been announced in the Budget and the timeframe has also been given, effective April 1. We are in constant touch with RBI," Sebi Chairman U K Sinha said. "RBI and Sebi will come out with formulations before April 1," he added. Finance Minister Arun Jaitley had announced in the Budget last month that India's first IFSC would be set up in GIFT City in Gujarat.

Sinha said there are some challenges and discussions are continuing to resolve them. "There are some challenges... How do you treat this territory? Is it an Indian territory or foreign territory in the technical term. Will Foreign Exchange Management Act (FEMA) apply or not? All those things are there. "We are in the process (of discussion), I'm not in a position to disclose the final outcome except that it would be out before April 1," Sinha said.

Presenting the Union Budget for 2015-16, Jaitley had said that appropriate regulations for IFSCs would be issued in March, which would be on the lines of global financial centres of Singapore and Dubai.

"Even though India produces some of the finest financial minds, including in international finance, they have few avenues in India to fully exhibit and exploit their strength to the country's advantage," he had said.       
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