Mumbai: The Security and Exchange Board of India issued detailed and relaxed set of guidelines for establishing international financial services centres.
Sebi is moving forward with efforts for setting up financial hubs in the country. The game-changing norms are aimed at creating a vibrant IFSC within India on the lines of Dubai and Singapore, and also help check trading in Indian securities and rupee derivatives at offshore financial hubs.
To be effective from April 1, the guidelines provide for domestic as well as foreign entities, including stock exchanges, to set up their operations in IFSCs. Easier norms would be in place for setting up stock exchanges, clearing corporations, financial intermediaries, asset management companies and related capital market infrastructure in the IFSC — the first of which is to come up in Gujarat’s GIFT City.
For setting up clearing corporations in these financial services centres, the initial minimum networth requirement would be Rs 50 crore, which has to be enhanced to Rs 300 crore in three years. Under the IFSC regime, any recognised domestic or foreign stock exchange can set up a subsidiary, in the financial services centre, provided they hold at least 51 per cent stake in the venture.
