FAQ's

  • GIFT is being developed as a global financial and IT Services hub, a first of its kind in India, designed to be at or above par with globally benchmarked financial centres. GIFT’s Master Plan facilitates Multi Services SEZ with International Financial Services Centre (IFSC) status, Domestic Finance Centre and the associated Social infrastructure. “GIFT SEZ Limited” has been formed by Gujarat International Finance Tec-City Company Limited (GIFTCL) for development of Multi Services SEZ at Gandhinagar with the prime focus on development of IFSC and allied activities in SEZ.

  • The purpose of setting up the GIFT City is to develop a world class smart city that becomes a global financial hub with the development of an International Financial Services Centre (IFSC). GIFT City is central business hub with state-of-the-art infrastructure and a first of its kind development in India. GIFT is attracting domestic and international financial services and IT/ITES sectors.

  • The promoting entities of GIFT city are:

    Gujarat Urban Development Company Limited (GUDCL)

    GUDCL is the designated agency of Government of Gujarat to facilitate urban development by assisting state government and other agencies in formulation of policy, institutional capacity building, project implementation; to assist in raising funds from multilateral agencies for various projects to facilitate sustainable development of urban areas, both new and existing, in order to achieve high living standards and growth of economic activities.

    Infrastructure Leasing and Financial Services Ltd (IL&FS)

    Incorporated in 1987, the business architecture of IL&FS focuses on providing services in development of Core Infrastructure. Areas suitably complemented with an array of Financial Services. The various businesses are conducted through subsidiaries with IL&FS being a principal shareholder in each.

    IL&FS has been promoted by the Central Bank of India (CBI), Housing Development Finance Corporation Limited (HDFC) and Unit Trust of India (UTI). Over the years, IL&FS has broad-based its shareholding and inducted Institutional shareholders including State Bank of India, Life Insurance Corporation of India, ORIX Corporation, Japan and Abu Dhabi Investment Authority.

    Can we do domestic transactions from GIFT City?

    GIFT City has two Zones: 1. Domestic and 2. Special Economic Zone (SEZ). All the domestic (Rupee denominated) transactions can be undertaken from GIFT domestic area.

    What is the existing infrastructure available in GIFT?

    Presently, GIFT City houses two state-of-the-art towers which are one of the tallest buildings in the state of Gujarat.

    Following are some of the unique infrastructure available at GIFT City:

    • Data Centre: A state of the art certified TIER IV Green Data Centre by Tata Communications with a capacity of 900 Racks is up and running
    • Automated Waste Collection System (AWCS): AWCS and Segregation Plant is one of the unique next class infrastructure planned in GIFT City. It will maximise resource recovery/Minimal emissions, Minimise impact on environment, human intervention, space requirement, impact on health hazard and no waste visibility which will make city clean, green and healthy.
    • Water: GIFT City is zero discharge city, water is drinkable from any tap.
    • Power: GIFT City ensures 99.999% power reliability.
    • ICT: GIFT City is connected with a fault tolerant optical fibre ring Infrastructure. The connectivity in GIFT City is provided by four major telecommunication service providers. GIFT uses advance of technology in form of unique IoT (Internet of Things) based C-4 (City & Command Control Centre) to monitor and manage city Infrastructure.
    • District Cooling System: District Cooling System is introduced first time in India for any commercial use. The chilled water will be supplied till building level and it will reduce energy and maintenance cost, reduce noise & vibrations, improve quality.
    • Utility Tunnel: All utility services except gas and sewerage from plants to various buildings will be routed through utility tunnel only. GIFT is planned to develop Utility Tunnel through city including DTA & SEZ areas.
  • Currently, GIFT ONE and GIFT TWO each of 28 floors developed by IL&FS are ready and available for use.

    Following are the other Developers in Domestic area:

    • Brigade Group
    • Prestige Group
    • B. U. Bhandari Landmarks
    • Jannadhar Housing (Affordable housing)
    • State Bank of India (for own use)
    • LIC (for own use)
    • BSE Brokers Forum
    • Sterling Hospital
  • Banks, Insurance companies, stock brokers, IT companies, BPO, KPO etc are already operating from GIFT ONE and GIFT TWO. Some of the names of companies operating from Domestic area are Oracle, Maxim Integrated, Bank of India, Syndicate Bank, nCode Solution, infibeam etc.

  • GIFT city runs a Bus inside the GIFT City on regular interval. Everyone can use the bus facility. Apart from internal bus facility, GIFT also runs a Bus from Visat BRTS station (nearest BRTS stop) to GIFT at regular intervals for everyone to commute from and to Ahmedabad.

  • GIFT City offers high quality of life with its state-of-the-art infrastructure. GIFT is envisioned to be developed into a smart city that has world class commercial & real estate development, smart IT-enabled business environment, technology enabled smart infrastructure, strong transport network & proximity to an international airport, world class social infrastructure (educational institutes, international schools, state of the art hospitals and 5-Star rated hotels) and entertainment hubs.

  • Yes, Jamnabai Narsee Monjee School is operational in the GIFT City.

    • Business Club
    • Hospital
    • Hotels
    • Shopping Mall
  • Currently, GIFT ONE and GIFT TWO each of 28 floors developed by IL&FS are ready and available for use.

    Colleges: DAICC, NIFT, NID, IIT-Gandhinagar, IIM-A (30 km), Gujarat National Law University (10 km)

    Schools: Podar International School, Delhi Public School (DPS) and many other renowned schools with State, CBSE, ICSE and IB board.

    There are also many Clubs, Hotels, Restaurants, Theaters, Malls etc nearby GIFT City.

  • An IFSC is a jurisdiction that provides financial services to non-residents and residents, to the extent permissible under the current regulations, in any currency except Indian Rupee.

  • GIFT SEZ in Gandhinagar, Gujarat has been designated as International Financial Services Centre. GIFT SEZ is the only place in India which is designated as IFSC.

  • The IFSC in GIFT seeks to bring to the Indian shores, those financial services transactions that are currently carried on outside India by overseas financial institutions and overseas branches/subsidiaries of Indian financial institutions to a center which has been designated for all practical purposes as a location having the same eco system as their present offshore location, which is physically on Indian soil.

    Strategic objective of setting up the IFSC are:

    • To create high value jobs by having production of financial services take place on Indian soil
    • To create an avenue into financial globalisation which would benefit the Indian economy and give policy makers an enhanced set of instruments
  • The State of Gujarat has emerged as the fastest growing region in the country with an annual Gross State Domestic Product of over 14% per annum over the past 10 years. In addition to housing one of the largest manufacturing bases in India, Gujarat also accounts for a disproportionately large share of the investor and entrepreneurial population in the country. A recently conducted talent study established that the manpower pool available in Gujarat, including non-resident Gujarati's, is amongst the largest pools available in the country.

    Recognizing the potential of the State as a centre for the financial services industry, GIFT Project has been formulated as mega project to realize this vision of setting up an IFSC in India.

  • The IFSC in GIFT will provide numerous benefits to the entities setting up operations there. Some of them are mentioned below:

    • State-of-the-art infrastructure at par with other global financial centres
    • Liberal tax regime for 10 years
    • Strong regulatory & legal environment
    • A wholly transparent operating environment, complying with global best practices and internationally accepted laws and regulatory processes
    • Pool of skilled professionals
    • A modern transport, communications and internet infrastructure
    • Only place in India which allows offshore transactions
  • IT companies do not require approval from any regulator where as Banking, Insurance companies and capital market entities require approval from Regulator. i.e Banks from RBI, Insurance companies from IRDAI and Capital market players from SEBI. At present the units related to Banking, Insurance and Capital market are considered as IFSC Unit.

  • IT companies and IFSC units can operate from the same zone, GIFT SEZ. IT companies can start operating after getting approval from Development Commissioner, KASEZ whereas Banks, insurance companies and capital market players apart from Development Commissioner approval also need to take approval from respective Regulator.

  • All the transactions should be in foreign currency (other than Rupee). IFSC units can carry out administrative and statutory expenses in Indian Rupees.

  • Following are the entities which can open IFSC unit:

    • Banking Sector – Regulated by Reserve Bank of India (RBI)
      • Indian banks (viz. banks in the public sector and the private sector authorised to deal in foreign exchange)
      • Foreign banks already having presence in India
    • Insurance Sector – Regulated by Insurance Regulatory and Development Authority of India (IRDAI)
      • Indian Insurer
      • Indian Reinsurer
      • Indian Broker
      • Foreign Insurer
      • Foreign Reinsurer
    • Capital Market - Regulated by Securities & Exchange Board of India (SEBI)
      • Stock Exchanges / Commodity Exchanges
      • Clearing Corporation
      • Depository
      • Broker
      • Investment Adviser
      • Portfolio Manager
      • Alternate Investment Fund
      • Mutual Fund
  • Banks: IDBI Bank, ICICI Bank, Yes Bank, IndusInd Bank, Federal Bank, Kotak Mahindra Bank, State Bank of India

    Insurance: New India Assurance (Direct Insurance), GIC Re (Reinsurance) will commence their operations shortly and Xperitus (Reinsurance Broker) will commence operations soon.

    Capital Market: Reliance AIF Management Ltd

    IT/ITeS, Consultancy Units: Accvell Technologies, QX Corporate Advisors, iShip Design, Exemplary Consultants

    Some of the biggest players in the financial services have signed MoUs to set up their operations in the GIFT-IFSC. These include: National Stock Exchange, Bombay Stock Exchange, MCX, NCDEX and DMCC.

  • IFSC Banking Units have done following type of transactions:

    • Buyer’s Credit
    • Loan Syndication
    • JV/WOS funding
    • ECB

    Banks operating from GIFT IFSC have already crossed transactions of $ 500 MN in a period of 6 months.

  • Yes, IFSC units can open foreign currency account with the banks operating in GIFT IFSC.

  • Yes, IFSC units can carry out administrative and statutory expenses in Indian Rupees.

  • The following points describe the procedure to establish a unit in GIFT- IFSC:

    • Obtain Letter of Intent (“LOI”) from GIFT SEZ Ltd. for securing the premises on lease
    • Application in the prescribed Form F to be filed with the jurisdictional Development Commissioner, (Kandla SEZ) and GIFT SEZ along with copy of project report and other details / information (in quintuplicate)
    • The Development Commissioner, GIFT SEZ shall scrutinize the proposal of the unit and shall place the same before Unit Approval Committee for their consideration
    • Unit Approval Committee shall approve or approve with modifications or reject the proposal within 15 days of its receipt
    • The Development Commissioner, GIFT SEZ shall issue “Letter of Approval” for setting up unit subject to approval by the relevant regulator.
    • SEZ unit will take approval from RBI, SEBI or IRDA for setting up IFSC unit for carrying out banking, capital market or insurance related activities in GIFT SEZ- IFSC
    • SEZ unit shall be required to confirm its acceptance with the terms and conditions of LOA to the Development Commissioner, GIFT SEZ within 45 days of receipt of LOA
    • SEZ unit shall be required to enter into a lease agreement with GIFT SEZ Limited and copy of registered lease deed shall be required to be submitted with the office of the Development Commissioner, GIFT SEZ within 6 months of receipt of LOA
    • The unit can then operate and avail all the benefits /exemptions/concessions as a unit in GIFT SEZ
  • The application is to be filed in 5 Set and one copy is to be submitted to the Developer i.e. GIFT SEZ.

    • Bank Draft of Rs 5000/- payable to REGIONAL PAY AND ACCOUNTS OFFICER, MUMBAI. (Payable at Gandhidham)
    • Application in form “F” duly filled and signed by the Authorized Person.
    • Self certified copy of incorporation, MOA,&AOA.
    • Self certified copy of PAN of the company.
    • Copy of Provisional Letter of Allotment issued by the Developer.
    • List of Directors of the company.
    • Certified copy of PAN card of the Directors.
    • Passport size photographs of the Directors
    • Copy of audited financial statement of the company for the last three financial years.
    • Certified copy of resolution for setting up the unit is SEZ and authorizing the person to sign the application.
    • Brief Project Report.
  • The reporting requirements for the entities that set up in the GIFT-IFSC are mentioned in the regulations released by various regulating authorities.

  • The following are the regulating bodies for various financial services:

    • Banking: RBI
    • Insurance: IRDA
    • Capital Markets (including Asset Management): SEBI
  • Generally, if all the submissions to regulators and Development Commissioner are correct, company may get license within 45 days from the date of submission.

    • Minimum Alternate Tax (MAT) - 9 % for IFSC units
    • Security Transaction Tax (STT) - NIL
    • Commodity Transaction Tax (STT) - NIL
    • Dividend Distribution Tax (DDT) - NIL
    • Long Term Capital Gain (LTCG) - NIL
    • Tax Holiday (10 years)

    (GoG has also exempted stamp duty for entities having registered office in GIFT for capital market activities).

    • IL&FS Township and Urban Assets Ltd., Mumbai
    • Hiranandani, Mumbai
    • Brigade Group, Bangalore
    • Savvy Group, Ahmedabad

    Apart from above Reliance Capital is developing office and residential building in GIFT SEZ.

  • The lease rent in GIFT Business Centre is around Rs. 50 per sq. Ft. per month. These are plug n play units.

  • The primary contact for queries related to the setting up operations in the GIFT-IFSC is as follows:

    Mr. Sandip Shah, Manager (IFSC & Strategy), GIFT City Co. Ltd.: sandip.shah@giftgujarat.in

  • Currently, the following two types of entities can set up IBUs in GIFT-IFSC:

    • Indian banks (viz. banks in the public sector and the private sector authorised to deal in foreign exchange)
    • Foreign banks already having presence in India
  • The Banking activities in GIFT are regulated by the Reserve Bank of India (RBI). The IFSC Banking Units (IBUs) will be the regulated and supervised by the RBI.

  • Yes, Banks can apply to DC, KASEZ and RBI (regulator) simultaneously. The approval from DC is subject to the approval from Regulator i.e RBI.

  • Foreign Exchange Management (International Financial Services Centre) Regulations, 2015 [G.S.R 218(E) dated 2nd March, 2015]

  • RBI/2015-16/282,DBR.IBD.BC. 8536/23.13.004/2015-16 dated January 7, 2016- Setting up of IFSC Banking Units (IBUs) – Permissible activities.

  • Indian Banks

    • IBU will be treated on par with a foreign branch of an India bank
    • Permission from RBI will be required for opening an IBU
    • Banks can establish only one IBU in IFSC

    Foreign Banks

    • Will not treated as normal branch expansion in India
    • Permission from home country regulator will be required
    • Permission from RBI will be required for opening an IBU
    • Banks can establish only one IBU per IFSC
  • The following capital requirements would be applicable for both Indian banks and foreign banks:

    • The parent bank would be required to provide a minimum capital of US$ 20 million or equivalent in any currency, other than INR.
    • The IBUs should maintain the minimum prescribed regulatory capital on an on-going basis.
  • The liabilities of the IBU are exempt from both CRR and SLR requirements of the RBI. The same would be applicable for both Indian banks and foreign banks.

    • The sources for raising funds, including borrowing in foreign currency, will be persons not resident in India
    • Deployment of the funds (subject to FEMA, 1999) can be both persons resident in India as well as persons not resident in India
  • The following regulations are applicable for IBUs of both Indian banks and foreign banks:

    • The IBUs are required to follow 90 days payment delinquency norm for income recognition, asset classification and provisioning, as applicable for Indian Banks
    • The IBU’s board may set out appropriate credit risk management policy and exposure limits as prescribed by the RBI
    • The IBUs will be required to adopt liquidity and interest rate risk management policies prescribed by the RBI within the risk management and ALM framework of the bank
    • The Bank’s board must set overnight limits for each currency for the IBUs
    • The IBUs will be required to follow Know Your Customer (KYC), Combating of Financing of Terrorism (CFT) and other Anti-Money Laundering (AML) instructions issued by the RBI
    • The IBUs are prohibited from undertaking cash transactions
    • The loans and advances of IBU will not be considered for computing PSL obligations of the Bank in India
    • IBUs will be required to furnish information on their IFSC operations as prescribed by the RBI (e.g. Offsite reporting, audited financial statements for the IBU)
  • The following measures have to be taken by both Indian banks and foreign banks to ring-fence the activities of the IBU:

    • The IBUs would operate and maintain balance sheet only in foreign currency and would not be allowed to deal in INR except for administrative and statutory expenses using a special rupee account
    • The IBUs are not allowed to participate in domestic call, notice, term, forex, money and other onshore markets and domestic payment systems
    • The IBUs are required to maintain separate Nostro accounts with Correspondent Banks distinct from those of other branches in India
  • The following activities are permitted for IBUs of both Indian banks and foreign banks:

    • Transactions with non-resident entities other than individual/ retail customers/HNIs
    • All transactions shall be in currency other than the INR
    • Deal with the Wholly Owned Subsidiaries/ Joint Ventures of Indian companies registered abroad
    • Have liabilities including borrowing in foreign currency only with original maturity period greater than one year. They can however raise short term liabilities from banks subject to limits as may be prescribed by the RBI
    • Factoring/ forfeiting of export receivables
    • All payment transactions must be undertaken via bank transfers
    • Allowed to open Foreign Currency Current Account of units operating in IFSC and of non-resident institutional investors to facilitate their investment transactions.
    • Transactions in all types of derivatives and structured products with the prior approval of their Board of Directors.
  • Department of Banking Regulations (DBR) and Foreign Exchange Department (FED), RBI

  • The following jurisdictions will be applicable for capital market activities in the GIFT-IFSC:

    • Indian Securities laws: The SEBI Act 1992, the Securities Contracts (Regulation) Act, 1956 (42 of1956), the Depositories Act, 1996 (22 of 1996), provisions of Companies Act, 2013 administered by SEBI
    • Foreign Jurisdiction: A country other than India whose securities market regulator is a signatory to IOSCO’s MMOU (International Organization of Securities Commission’s Multilateral MoU) or a signatory to bilateral MoU with SEBI
    • Stock Exchange
    • Commodity Exchange
    • Clearing Corporation
    • Depository
    • Investment Advisor
    • Portfolio Manager
    • Alternate Investment Fund
    • Mutual Fund
  • Eligibility: Any Indian recognized stock exchange or any stock exchange of a foreign jurisdiction may form a subsidiary to provide the services of stock exchange in IFSC

    Shareholding limit: The exchange needs to hold at least 51% of the paid-up equity share capital

    Minimum Net Worth: Min. Net worth equivalent of INR 25 crores is required initially, which should enhance to INR 100 crores over a 3 year period

  • Eligibility: Any Indian recognized stock exchange or clearing corporation or any recognized stock exchange or clearing corporation of a foreign jurisdiction may form a subsidiary to provide the services of clearing corporation in IFSC

    Shareholding limit: The stock exchange or clearing corporation needs to hold at least 51% of the paid-up equity share capital

    Minimum Net Worth: Min. Net worth equivalent of INR 50 cr. Initially and it should enhance to INR 300 cr. over a 3 year period

  • Eligibility: Any Indian registered depository or any regulated depository of a foreign jurisdiction may form a subsidiary to provide the depository services in IFSC

    Shareholding limit: The depository needs to hold at least 51% of the paid-up equity share capital

    Minimum Net Worth: Min. Net worth equivalent of INR 25 cr. Initially and it should enhance to INR 100 cr. Over a 3 year period

  • The following securities can be dealt with in the exchanges operating out of the GIFT-IFSC with a specified trading lot size on their trading platform subject to prior approval of SEBI:

    • Equity shares of a company incorporated outside India
    • Depository Receipts
    • Debt Securities issued by eligible issuers
    • Currency and interest rate derivatives
    • Index based derivatives
    • Commodities
    • Other such securities as specified by SEBI
  • The following clients can be provided financial services by the capital market intermediaries:

    • a person not resident in India
    • a non-resident Indian
    • a financial institution resident in India who is eligible under FEMA to invest fundsoffshore, to the extent of outward investment permitted
    • a person resident in India who is eligible under FEMA, to invest funds offshore, tothe extent allowed under the Liberalized Remittance Scheme of Reserve Bank ofIndia, subject to a minimum investment as specified by the Board from time to time
  • The following clients can be provided financial services by the capital market intermediaries:

    • a person not resident in India
    • a non-resident Indian
    • a financial institution resident in India who is eligible under FEMA to invest fundsoffshore, to the extent of outward investment permitted
    • a person resident in India who is eligible under FEMA, to invest funds offshore, tothe extent allowed under the Liberalized Remittance Scheme of Reserve Bank ofIndia, subject to a minimum investment as specified by the Board from time to time
  • The following clients can be provided investment advisory or portfolio management services:

    • a person not resident in India
    • a non-resident Indian
    • a financial institution resident in India who is eligible under FEMA to invest funds offshore, to the extent of outward investment permitted
    • a person resident in India who is eligible under FEMA, to invest funds offshore, to the extent allowed under the Liberalized Remittance Scheme of Reserve Bank of India, subject to a minimum investment as specified by the Board from time to time
  • A portfolio manager operating in IFSC shall be permitted to invest in the following securities:

    • Securities which are listed in IFSC
    • Securities issued by companies incorporated in IFSC
    • Securities issued by companies belonging to foreign jurisdiction
  • The following criterions must be complied with by an issuer of debt security:

    • The issuer is eligible to issue debt securities as per its constitution
    • The issuer should not have been debarred by any regulatory authority in its home jurisdiction or any other jurisdiction, where it is operating or has raised any capital
    • The issuer or its directors should not be convicted of any economic offence in its home jurisdiction or any other jurisdiction where it is operating or has raised any capital
    • Any other criteria as may be specified by the Board
  • The minimum subscription amount in case of private placement per investor shall not be less than USD100, 000 or equivalent or such amount as may be specified by SEBI from time to time.

  • The following investors will be eligible to invest in AIFs and Mutual Funds:

    • a person resident outside India
    • a non-resident Indian
    • institutional investor resident in India who is eligible under FEMA to invest fundsoffshore, to the extent of outward investment permitted
    • person resident in India having a net worth of at least US Dollar one million during thepreceding financial year who is eligible under FEMA to invest funds offshore, to theextent allowed in the Liberalized Remittance Scheme of Reserve Bank of India
  • The AIFs and mutual funds will be permitted to invest in the following securities:

    • Securities which are listed in IFSC
    • Securities issued by companies incorporated in IFSC
    • Securities issued by companies belonging to foreign jurisdiction
  • An asset management company of a mutual fund operating in IFSC shall have a net worth of not less than USD two million which shall be increased to USD ten million within three years of commencement of business in IFSC.

  • CIR/MRD/DSA/41/2016 dated March 17, 2016: Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015 (IFSC Guidelines) - Inclusion of Commodity Derivatives

  • In the Recent budget (2016-17), GoI has provided following incentives to IFSC units.

    • No Security Transaction Tax (STT)
    • No Commodity Transaction Tax (CTT)
    • No Dividend Distribution Tax (DDT)
    • No Long Term Capital Gain Tax (LTCG)
    • No Stamp duty on Capital market transactions
    • MAT reduced to 9%
  • No, capital market participants cannot operate as a Branch. As per the SEBI (IFSC) Guidelines, 2015, entities desirous to start capital market activities from IFSC should open a separate company.

  • There is no particular application format

    • Indian Insurers
    • Indian Reinsurers
    • Foreign Insurers
    • Foreign Reinsurer
    • Indian Brokers
  • All Indian insurers are eligible to set up IFSC Insurance Office (IIO). Such applicants shall make an application to the Authority in Form as may be prescribed by the Authority.

    An Insurer registered with a foreign Regulatory or Supervisory Authority seeking to set up IIO in a SEZ, shall be eligible based on the following criteria:

    • The Applicant is registered or licensed fordoing Insurance or Reinsurance business in the country of incorporation;
    • The Applicant has been duly authorized by the Regulatory or Supervisory Authority of that country to set up such office;
    • The Applicant has been in continuous operation during the preceding 5 years from the year in which

    Provided that the applicant, whose application for registration has been rejected by the Authority, shall become eligible only after a period of two years from such date of rejection.

    An Applicant fulfilling the above criteria shall submit an application to the Authority in the form prescribed by the Authority;

  • Following Insurance activities can be carried out from IFSC:

    • Life
    • General
    • Reinsurance
    • Insurance/Reinsurance Broking
    • Accept reinsurance business of all classes of business within the SEZ and from outside the country
    • Accept re-insurance business from the insurers operating in the DTA in accordance with the IRDA regulations on reinsurance
  • Every application for registration shall be accompanied by:

    • A certificate of approval from the appropriate authority as prescribed in SEZ Act for conducting insurance business in the SEZ;
    • A copy of the registration certificate issued by the respective Regulatory or Supervisory Authority, copy of the document(s) establishing incorporation of the entity under the laws of the respective country or a deed of covenant or any other document which is considered as valid proof of its existence;
    • Approval from the Board of Directors of the Applicant through a resolution in support of the commitment to set up such IIO.
    • A note on the regulatory architecture of the country where the Insurer or Re-insurer is incorporated and licensed along-with its reporting and compliance structure; the name, address and the occupation of the Directors and CEO;
    • Projected business for next 5 years;
    • Evidence of the payment of non-refundable fee of rupees Rs. 50,000/- a certificate from a practicing Chartered Accountant of India or a practicing Company Secretary of India certifying that all the requirements of the Act read with notifications issued under section 2CA of the Act have been complied with by the applicant; and
    • Published annual reports for the last 5 years; Nothing in this clause shall prevent the Authority from seeking further information as may be needed for the processing of the application for registration.
  • The Authority shall take into account, for considering grant of certificate of registration, all matters relating to carrying on the business of reinsurance by the applicant.

    In particular and without prejudice, the Authority shall consider the following matters for grant of certificate of registration to the applicant, namely:

    • The record of performance of Insurance and Re-insurance business carried on by the Applicant;
    • The record of performance of the directors and persons in the management of the Applicant;
    • The capital structure of the Applicant;
    • The planned infrastructure of the Applicant to effectively carry out the insurance business in SEZ;
    • the organization structure of the Applicant; and
    • Other relevant matters in consonance with the provisions of these Guidelines.

    The Authority on being satisfied that the application is complete in all respects and is accompanied by all documents required therein; all information given is correct; and the applicant is a bona fid applicant for registration the financial condition and the general character of management of the applicant are sound and; the applicant is eligible, and in its opinion, is likely to meet effectively its obligations imposed under the Act as well as under the SEZ Act, 2005 may accept the application subject to compliance with clause 9 of these Guidelines.

    If the Authority, after, considering matters referred to in sub clause (1) and (2) above is satisfied that it is not desirable to grant a certificate of registration, it may, through an order to be communicated in writing to the applicant, reject the application after giving the applicant a reasonable opportunity of being heard.

    Provided that the reasons for rejecting the application are also to be recorded therein.

  • The Authority, after being satisfied of the fulfillment of norms as stipulated in Clause 13 may register the applicant as an IFSC Insurance Office (IIO) in SEZ for the class of business for which the applicant is found suitable and grant him a certificate in form prescribed.

    Nothing here shall prevent the Authority to reject such certificate of registration provided it is observed that the applicant has misrepresented the facts or failed to fulfill the requirements as stipulated in the Act, rules, regulations and guidelines and the SEZ Act, 2005

  • Such IIO granted certificate of registration under clause 7 of these guidelines are permitted to accept reinsurance business of all classes of business within the SEZ and from outside the country accept re-insurance business from the insurers operating in the DTA in accordance with the IRDAI Regulations on reinsurance.

    Provided that the IIO may retrocede up to 90% of its reinsurance business. The surplus available after such retrocession arrangements shall be held in the form of Government Securities issued by Govt. of India or in deposits with Scheduled banks in India.

  • An applicant granted a certificate of registration under these Guidelines shall commence operations within 6 months of the date of grant of certificate of registration.

    Provided, however, that if the IIO is not able to commence the insurance business within the specified period of 6 months, it can before the time limit expires, but at least 30 days in advance, seek an extension, by a proper written application to the Authority.

    Provided further that no extension of time shall be granted by the Authority beyond 12 months from the date of grant of certificate of registration under clause 7 of these guidelines.

  • The applicant on receipt of communication from the Authority under Clause 6(3) shall demonstrate an assigned capital of Rs. 10 crore. Such capital may be held in the form of Government Securities issued by the Government of India or held as deposits with Scheduled Banks in India and shall be maintained at all times during the subsistence and validity of its registration under these guidelines.

    Provided that the requirement of such assigned capital is applicable to applicants specified in clause 4(2).

  • An applicant being an Indian Insurer may (except a statutory body) also establish an IIO to transact specified Direct Insurance Business within the SEZ. However, the same IIO granted Certificate of Registration under clause 7 may also transact specified Direct Insurance Business.

    • Such IIO may also underwrite specified direct insurance business of foreign jurisdictions.
    • The IIO shall make an application in form prescribed for underwriting direct business.
    • Such IIO shall not write direct insurance business in the DTA except in accordance with Section 2 CA of the Act
  • Notwithstanding anything stated herein, the following terms and conditions shall govern the approval of the IIO operations in SEZ:

    • Initial and further augmentation of capital and liabilities met out of the Shareholder's funds beyond solvency margin requirement;
    • Compliance with Know your Customer (KYC) and Anti-Money Laundering (AML) guidelines issued by the Authority;
    • Compliance with Foreign Exchange Management Act, 1999 and any other law in force governing the operations of such offices;
    1. Notwithstanding anything contained in the Insurance Act, 1938, the Board of the applicant shall review the reports of the IIO in the SEZ on a regular basis, specifically covering the following:
      1. Financial reporting covering statement of account giving details of activities;
      2. Business reporting;
    2. The Insurer registered with a foreign Regulatory or Supervisory Authority or an Indian Insurer as the case may be shall immediately report to the Authority any regulatory or supervisory action taken by the home country regulator with full details and the penalty, any administrative action imposed and the remedial steps taken.
    3. The IIO shall submit periodic returns in such form and such manner as the Authority may specify from time to time.
  • The IIO shall be liable to pay annual fee of Rs. 1, 00,000/-. Such fees shall be remitted by 31st December of the preceding financial year.

    The fee shall be remitted by online banking/ RTGS/ NEFT/ or through any other recognized electronic mode / Demand draft issued by any scheduled bank in favor of the Insurance Regulatory and Development Authority of India.

  • The Authority shall have the right to call, inspect or investigate any document, record or communication of the IIO.

    Closure of operation of any IFSC Insurance Office (IIO) in a SEZ shall be with the prior approval of the Authority.

    Notwithstanding the above, where the Authority is of the opinion that the operations of an IIO are not in public interest, the Authority reserve the right to direct the insurer to close the office in SEZ after giving adequate opportunity of being heard to the IIO.

  • IIO shall follow the terms and conditions for underwriting the business of insurance and reinsurance within the overall scope of insurance Regulatory and Development Authority of India (Regulation of Insurance Business in Special Economic Zone) Rules, 2015 notified by Central Government.

  • IRDAI (IFSC) Guidelines, 2015 and recent circulars have provided application format for Indian Insurer, Foreign Insurer and Indian Broker.

  • Yes, IFSC Insurance Office and Broking Office should maintain separate books of accounts. The unit can maintain Bank account with the banks operating in GIFT IFSC.