IFSCA - Guide

International Financial Services Centres Authority (IFSCA)

The International Financial Services Centres Authority (IFSCA) was constituted on 27 April 2020 under the International Financial Services Centres Authority Act, 2019. Its establishment was formalized by Government of India notification S.O. 1384 (E), dated 27 April 2020, published in the Gazette of India, Extraordinary, Part II, Section 3(ii). The Authority is headquartered at GIFT City, Gandhinagar, Gujarat.

Mandate and Function

IFSCA serves as a unified regulator for financial services conducted in India’s International Financial Services Centres (IFSCs). It consolidates the powers of RBI, SEBI, IRDAI, and PFRDA for all financial sector activities in the IFSC jurisdiction. Its key objectives include:

  • Establishing a consistent regulatory regime for cross-border financial services.
  • Facilitating the development of IFSC as a global financial gateway.
  • Enabling capital raising, intermediation, and investment services aligned with international norms.

GIFT IFSC: Regulatory and Institutional Overview

GIFT IFSC is India’s first operational International Financial Services Centre, designed to attract offshore financial services and institutions. It offers:

  • A separate regulatory and tax framework for non-resident participants.
  • Transactions denominated in freely convertible foreign currencies.
  • Institutional infrastructure for banking, insurance, capital markets, and fund management.

The regulatory architecture allows for:

  • Offshore Banking Units licensed under the IFSCA (Banking) Regulations, 2020.
  • Capital Market Infrastructure: International exchanges and clearing corporations.
  • Fund Management Entities: AIFs, portfolio managers, mutual funds.
  • Insurance and Reinsurance Businesses: Licensed under the IFSCA (Insurance) Regulations.

IFSCA (Finance Company) Regulations, 2021

  • FinTech Entities operating under IFSCA’s innovation sandbox.

Institutional Characteristics

Key regulatory and operational features include:

  • Single Regulator: IFSCA oversees all financial sector activities within IFSC.
  • Currency Flexibility: Full capital account convertibility for non-residents.
  • Legal Infrastructure: International arbitration and dispute resolution facilities.
  • Taxation: Select exemptions under the Income Tax Act, 1961 applicable to IFSC units.

SPEC Finance (IFSC) Private Limited – Regulatory Status

SPEC Finance (IFSC) Private Limited is a registered entity under the Ministry of Corporate Affairs (CIN: U66190GJ2023PTC145068) and holds the following licenses issued by IFSCA:

  • Finance Company License: IFSC/FC/2024-25/0012
  • Investment Banking License: IFSC/IB/2024-25/002

These licenses are issued pursuant to Sections 12 and 13 of the IFSCA Act, 2019. The entity is listed in the official IFSCA Regulated Entity Directory.

SPEC Finance operates within the scope of permitted activities under IFSCA regulations, with a geographic focus on emerging and frontier markets. Its operations are subject to ongoing compliance with applicable prudential, reporting, and risk management guidelines issued by the Authority.