GIFT City: Our Home
GIFT City: A Gateway to India's Growth Story
SPEC Finance Statement on IFSCA Framework and Foreign Currency Operations in GIFT City
We are pleased to inform you that SPEC Finance (IFSC) Pvt Ltd is a registered Finance Company operating within the GIFT City International Financial Services Center (IFSC), under the regulatory supervision of the International Financial Services Centers Authority (IFSCA) – the unified regulator for financial services in India’s IFSCs.
GIFT City IFSC is a designated offshore jurisdiction within India, with its own distinct financial regulations and tax framework, governed solely by IFSCA. Entities Operating within this jurisdiction—including banks (as International Banking Units), finance companies, insurance entities, and capital market participants—are permitted to undertake financial transactions exclusively in specified foreign currencies. Link to IFSCA Circulars are IFSCA Banking Regulations and Amendment to Include 4 Additional Specified Foreign Currencies
We would like to highlight the following key features relevant to our operations:
1. Foreign Currency Operations:
As per the IFSCA (Finance Company) Regulations, SPEC Finance is permitted to carry out borrowing and lending transactions only in specified foreign currencies approved by IFSCA. Indian Rupees (INR) are not permitted for financial transactions in the IFSC, except for limited operational use.
2. Approved Currencies:
All financial dealings in the IFSC must be conducted in one or more of the foreign currencies approved by IFSCA. The list of such currencies is enclosed as Annexure-A.
3. International Banking Units (IBUs):
Banks operating in the IFSC are known as International Banking Units (IBUs). These units are treated as separate and distinct entities from their onshore Indian counterparts, with separate Nostro accounts, books of accounts, regulatory reporting, and internal systems. IBUs are authorized to accept deposits and make payments in any of the approved foreign currencies and engage in international banking transactions with non-residents and other IFSC entities, including finance companies like ours.
4. Independent Jurisdiction and Regulatory Oversight:
All financial institutions operating in the IFSC fall under the exclusive regulatory authority of IFSCA. This makes GIFT City operationally and legally distinct from India’s domestic financial system, ensuring a globally aligned and liberalized regulatory environment.
We encourage international banks, exporters, importers, and institutional counterparties to explore structured financial arrangements with IFSCA-registered entities like SPEC Finance and leverage the cross-border capabilities offered within this unique offshore jurisdiction.
Should you require further details about our services or IFSCA regulations, please feel free to reach
out to us.
GIFT City: A Gateway to India's Growth Story
Strategic Location
- Proximity to Major Markets: GIFT City’s geographical advantage allows easy access to major Indian and international markets.
- Global Connectivity: World-class infrastructure, including high-speed internet and air connectivity, facilitates seamless global transactions.
Business-Friendly Environment
- Special Economic Zone (SEZ) Benefits: Companies in GIFT City enjoy benefits like duty-free imports, single window clearances, and simplified regulatory procedures.
- Tax Advantages: The IFSC status offers tax exemptions on corporate tax, minimum alternative tax (MAT), and Goods and Services Tax (GST) for specific services, making operations cost-effective.
Regulatory Framework
- International Standards: The International Financial Services Centres Authority (IFSCA) regulates GIFT City,ensuring adherence to global financial regulations.
- Investor Protection: A robust legal framework safeguards investor interests and fosters a transparent business environment.
World-Class Infrastructure
- Smart City Design: GIFT City boasts state-of-the-art infrastructure, including high-tech business complexes,residential areas, and social amenities, creating a vibrant work-life balance.
- Focus on Sustainability: The city prioritizes sustainable practices, making it an attractive location for environmentally conscious corporations.
Tailored Opportunities
- Financial Services Hub: GIFT City caters specifically to the financial services sector, housing banks, insurance companies, stock exchanges, and fintech firms.
- Fintech & Innovation: A supportive ecosystem fosters innovation in financial technology, making it an ideal launchpad for new-age financial solutions.
GIFT City as a Springboard
GIFT IFSC Advantage
Onshore International financial services business from offshore centres such as London, Singapore, New York, Dubai and Hong Kong.
Serves as dominant gateway for channelizing global capital.
Develop expertise in niche sectors such as fintech, Aircraft and ship leasing, global treasury centres, commodity markets.
Attractive Tax regime.
No Capital Control.
Full convertibility with 15 currencies.
Large access to huge hinterland Indian market.
Availability of large Talent pool.
India’s First International Financial Centre:
Competitive Tax Regime
Relaxed Company Law
Strategic Time Zone
International Arbitration Centre
Offshore Banking
Capital Markets
Insurance
Finance Company
Global Inhouse Centre
What GIFT City Brings to the Table:
Opportunity: To be a part of a Global Financial & Technology Hub
Govt. of Gujarat incentives: No stamp duty and registration charges, Development Incentives
A Plug & Play Infrastructure
An Introduction and Welcome by SPEC Finance, a GIFT City India Merchant Bank and Finance Company.
Global Finance Companies, corporations and investors are choosing GIFT City as their international financial hub.
GIFT City, located in Gandhinagar, Gujarat in western India is the first International Financial Center of India created by an act of Indian Parliament with modern and progressive regulations placing it as par with competitive financial hubs of the world.
With unique advantages of cost effective access to the most significant global brain trust of highly educated Indian youth and professionals, GIFT city is more than just the platform Indian market. It is a true international financial center that bridges Global North and South and creates a competitive, cost effective and tax efficient hub for global investments and finance.
The unique features of GIFT City International Financial Center (IFSC)
Modern and progressive Regulations:
The IFSC Authority [IFSCA] is a unified and one instance regulator for all financial services, including banking, insurance, capital markets, fin-tech and education.
Freedom with Money:
Business in 15 foreign currencies, no controls on how much money can be brought in or taken out.
Globally Bench-marked Rules:
The rules and regulations in GIFT City are designed to meet international standards and at par (or better) with other global financial centers. This makes it a trusted and secure place for global investors.
The Brain Trust and Business Presence:
Gujarat has provided the world with leading thinkers, lawyers, business persons. The Gujarat diaspora professionals hold leading positions in International Commerce and FInance. GIFT City has attracted leading business of the world already and best of Indian talent is moving to Gandhnagar for GIFT city opportunities. GIFT CIty already hosts wide range of businesses, including Fund Management Entities, Investment funds, Banks and finance companies, and three exchanges. This creates a vibrant and diverse environment for growth and innovation.
Tax Benefits
Major Tax Savings:
Businesses can get a 10-year income tax break
NO VAT/ GST:
There are no taxes on transactions (like STT or CTT), and no GST ( Goods and Services Tax), no VAT or customs duties on most or all activities.
Ease Of Business:
The process for getting all approvals from single regulator through a digital platform is transparent, prompt and simple. There is no red tape and fewer reporting requirements under corporate law.
Ease Of Business:
The process for getting all approvals from single regulator through a digital platform is transparent, prompt and simple. There is no red tape and fewer reporting requirements under corporate law.
A Fast Growing City
GIFT City is a massive fast developing construction zone with numerous ultra modern facilities alrAeady in place or coming up.
Located near Ahmedabad and Gandhinagar. The Sardar Patel Airport of Ahmedabad is newly built and handles over 2 dozen international flights per day. It is connected to all major Indian cities. GIFT City is close to an international airport and will have a Mumbai-Ahmedabad Bullet- Train station.
Talent
There are a dozen technical colleges and universities in the Ahmedabad – Gandhinagar area including an Indian Institute of Technology (IIT), Indian Institute of Management (IIM), law, petrochemicals, biotech and defense universities. The safety and quality of life of Tri-City [ Ahmedabad, Gandhinagar, GIFT CIty ] makes it attractive for Indian professionals to relocate. This enables access to highly skilled professionals and youth.
Innovation
GIFT City is realisation of the vision of Prime Minister Narendra Modi and is a center for innovations in finance, sustainability, ease of business, education and financial technology (FINTECH) with dedicated incubation centers and a focus on research, constantly encouraging new ideas and growth.
GIFT City – A Gateway to Global Business
Gift City: www.giftgujarat.in
IFSCA: www.ifsca.gov.in