IFSC

Mkt players aim to stoke flames of direct listing in financial hub

Power Finance Corporation on Wednesday said its arm PFC Infra Finance IFSC Ltd has received approval from International Financial Services Centres Authority to commence business as a finance company in IFSC GIFT City, Gujarat. PFC Infra Finance IFSC Ltd (PIFIL) will be the first finance company in IFSC dedicated to power and infrastructure sector lending, the company said in a statement. PIFIL aims to provide lending in India and other countries in foreign currency, catering to government as well as private players. The establishment of PIFIL will position PFC as a global brand and contribute to strengthening India's position as a global financial hub. IFSCA chairperson K Rajaraman presented the Certificate of Registration (CoR) to Parminder Chopra, Chairperson PFC & PIFIL. "As we commence operations, funding for energy transition will be a key focus, aligning with India's strong push towards clean energy sources," Chopra said.

State-owned Canara Bank on Wednesday said it has mobilised USD 300 million via the IFSC Banking Unit. The net proceeds from the issue of the notes will be applied by the Issuer's IFSC Banking Unit at Gandhinagar towards the general corporate purposes, Canara Bank said in a regulatory filing. The bonds with maturity of 5 years carry a coupon rate of 4.896 to be paid semi annually, it said. Commenting on the occasion, Canara Bank MD and CEO K Satyanarayana Raju said, "We are delighted on the successful launch and pricing of this transaction, which enabled us to achieve a 30-bps tightening from the initial price guidance to final price guidance." The issuance was widely subscribed by investors across Asia, Middle East and Europe demonstrating the strong confidence in the Canara Bank's credit, he said.

Reserve Bank Governor Shaktikanta Das on Saturday said trading of sovereign green bonds can commence at the International Financial Services Centre in Gujarat during the second half of the current fiscal. "We are in discussion with the IFSC, it will be operationalised very soon. I think in the second half (of the current financial year), it will be possible," Das said. In April, the Reserve Bank of India (RBI) had announced that it will issue a framework to enable the trading of sovereign green bonds in GIFT City. The government has been raising funds through green bonds since 2022-23 and has raised a total of Rs 36,000 crore in the last two years. So far in the current financial year, the government has raised only Rs 1,697 crore out of the stipulated Rs 12,000 crore scheduled to be raised in the first half ending in September through green bonds as it did not find favourable bids. Asked about the tepid response from investors to such bond issuance, Das said, "as the debt manager

Industry body requests removal of 25 per cent limit for IFSC-based retail funds' investment in unlisted assets

India Inc enters a new era of rumour verification this week. The top 100 listed companies are now mandated to confirm, deny, or clarify information reported in the media

New rules aim to improve NRI participation

Jio Financial Services on Thursday said its subsidiary Jio Leasing Services and its nominees have made an initial investment of Rs 2.50 crore in newly-incorporated Reliance International Leasing IFSC Ltd (RILIL). Incorporated on February 1, RILIL is a 50:50 joint venture between Jio Leasing and Reliance Strategic Business Ventures Ltd, an arm of Reliance Industries. "Jio Leasing Services Ltd (JLSL)... along with its nominees invested an amount of Rs 2.50 crore towards the initial subscription of 25 lakh equity shares of Rs 10 each of RILIL, for cash at par," Jio Financial Services said in a BSE filing. JLSL is a subsidiary of Jio Financial. RILIL will be engaged in the business of operating lease of ships, vessels and voyage charters in International Financial Services Centre (IFSC) located at International Finance Tec-City (GIFT City), Special Economic Zone (SEZ), Gujarat. Shares of Jio Financial Services were trading Rs 355.70, up 1.50 per cent from previous close on the BSE.

It is proposed that disclosure exemption will be given only if the composite holding of all such FPIs in the group is less than three per cent of the total equity share capital

The International Financial Services Centres Authority (IFSCA) is "on the job" to set up an international arbitration centre at the IFSC, Gandhinagar, to speed up dispute resolution, its chairman K Rajaraman said on Wednesday. Finance Minister Nirmala Sitharaman in her Budget speech in 2022 announced setting up of an international arbitration centre at Gujarat International Finance Tec-City (GIFT City). Currently, GIFT-IFSC is the maiden international financial services centre in India. "The proposal is under consideration of the government...we are already on the job", he said at an event organised by the PHD Chamber of Commerce and Industry. The centre could be on the lines of the Singapore International Arbitration Centre, or the London Commercial Arbitration Centre. Asked if crypto currency is allowed in IFSC, Rajaraman said it is not permitted as it is not a safe financial product. However, he said, IFSCA is working on tokenisation of real world assets and the regulator is .

Proposal will give 'some breather' business set up in GIFT city, she says

The move will enable startups and other domestic companies to access the global market and raise capital in foreign currency through GIFT IFSC

With the inclusion, entities registered with the IFSC Authority will be able to provide these services to non-residents while operating from GIFT city

Finance Minister Nirmala Sitharaman on Friday met French President Diplomatic Advisor Emmanuel Bonne and sought greater participation from French financial institutions and operations in the International Financial Services Centre (IFSC) at GIFT City. "They discussed approaches for further enhancing collaborative positions on climate actions, strengthening international financial institutions and addressing the debt vulnerability in low-and-middle-income countries," the finance ministry said in a post on X. Recognising the synergy between Indian UPI and French Targeted Instant Payment Settlement (TIPS), they explored avenues for closer financial integration, it said. "Finance Minister Smt. @nsitharaman encouraged greater participation from French financial institutions and corporations in pathbreaking initiatives and operations in IFSC at @GIFTCity," it said. Bonne is in the national capital ahead of the upcoming visit of French President Emmanuel Macaron as the chief guest for the

Finance Minister Nirmala Sitharaman on Thursday said India has a USD 10.1 trillion funding gap to meet its net zero commitment and asked IFSC to set up a platform where green credits can be traded. Speaking at a session 'An aspiration of modern India' at the GIFT City, the minister said companies in India will be able to access global funds soon with direct listing on IFSC exchanges. "The much awaited direct listing of stock in Gift IFSC was announced earlier. We are going through the process in a systematic manner and I'm confident that it will happen at the earliest. With that Indian companies should be able to access global funds easily being listed in India," she said. Last year the government had decided to allow listed and unlisted companies to directly list themselves on the IFSC (International Financial Services Centre) exchanges at GIFT City. Currently, Indian companies can access foreign equity markets only through issuing depository receipts or by listing their debt ...

Suggests tax sops for direct listing

The group also suggested that Indian mutual funds may be permitted to participate in direct listings at the IFSC up to a limit of 1% of their assets under management

The new fund offering (NFO) will close for subscription on December 12, 2023 and will reopen for sale and repurchase within 5 business days from allotment

The move follows remarks made by the Finance Minister, Nirmala Sitharaman, in September on permitting Indian companies to undertake "direct foreign listings"

Rajaraman says norms to be notified soon; Regulator also mulling on a new payments system regulation