Comprehensive legal framework soon to make GIFT City global hub for accounting, financial back-office functions: FM

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Union Finance Minister Nirmala Sitharaman on Saturday said a comprehensive legal framework will soon be in place to enable accounting, auditing and taxation professionals to provide services from GIFT City, turning it into a global hub for accounting and financial back-office functions.

Chairing a review meeting on the growth and development of GIFT-IFSC at Gujarat International Finance Tec-City (GIFT City), Sitharaman also emphasised using the maximum potential of the Indian International Bullion Exchange IFSC (IIBX) — launched in Gandhinagar in 2022 — in ensuring disintermediation and efficient price discovery.

She asked the Reserve Bank of India to pilot the import of tariff rate quota (TRQ) gold under the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates through IIBX to pave the way for Indian banks efficiently using the IIBX platform, an official release stated.

The Union minister exhorted both the International Financial Services Centres Authority (IFSCA) and the Insurance Regulatory and Development Authority of India (IRDAI) “to proactively engage with leading global insurance companies to establish GIFT as a premier global hub for insurance and reinsurance,” it added.

The Union minister said that priorities should be set out for attracting more and more business and creating large-scale investment.

She emphasised on the need for all stakeholders to elevate GIFT City as a premier financial hub so that it stands out as the best among its contemporaries on the global scale.

“As envisioned by Prime Minister Narendra Modi, GIFT City should emerge not only as a lively international centre but also as a global leader in devising solutions to intricate financial challenges, especially in the climate of the current global economic headwinds,” the release quoted her as saying.

Sitharaman mentioned that sunrise niche areas such as logistics for precious metals, global insurance, and aircraft-and-ship leasing should expand the portfolio of services provided out of GIFT City.

Sitharaman appreciated swift actions in streamlining approvals and accelerating infrastructure development, especially for the two Australian universities in line with the Budget 2022-23 announcements.

“This has helped in garnering interest from numerous global universities in the GIFT-IFSC,” stated the release.

The Union Finance Minister also asked that the direct listing of Indian shares on IFSC exchanges already approved by the Government of India must be advocated amongst relevant stakeholders.

She visited IFSCA headquarters in GIFT City and addressed the members of the IFSC Authority along with secretaries of the Ministry of Finance and Ministry of Corporate Affairs. P

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