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IFSC
With an aim to boost business activities in the international financial hub GIFT IFSC, the government in the Budget paved the way for IFSC units to issue participatory notes or offshore derivative instruments to foreign investors. Participatory notes (P-notes) are issued by registered foreign Portfolio Investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process. Till December 2022, the value of P-note investments in Indian markets -- equity, debt, and hybrid securities -- was at Rs 96,292 crore, data with the Securities and Exchange Board of India (Sebi) showed. Finance Minister Nirmala Sitharaman in her Budget speech on Wednesday recognised "offshore derivative instruments (ODIs) as valid contracts" in order to enhance business activities in the Gujarat International Finance Tec-City (GIFT City). In line with the Budget's announcement, it is likely that ...
The Reserve Bank on Monday permitted resident entities to hedge their exposure to price risk of gold on exchanges in the International Financial Services Centre (IFSC). Resident entities in India are currently not permitted to hedge their exposure to price risk of gold in overseas markets. "On a review, it has been decided to permit eligible entities to hedge their exposure to price risk of gold on exchanges in the IFSC recognised by the International Financial Services Centres Authority (IFSCA)," the RBI said in a circular. An announcement in this regard was made by Reserve Bank Governor Shaktikanta Das while unveiling the bi-monthly monetary policy last week. Hedging refers to the activity of undertaking a derivative transaction to reduce an identifiable and measurable risk.
Following the amalgamation with DBIL, the IFSC & MICR codes of all branches of erstwhile LVB have changed. While the new codes have been active since October 25, 2021, the older IFSC codes will remain valid until February 28, 2022, to ensure customers' convenience and ease of transition. Customers will be required to use the new DBS IFSC code from March 1, 2022, onwards to receive funds through NEFT/RTGS/IMPS.The change was communicated to customers through physical letters, emails, and SMS as well as at the branches. They were requested to share the new IFSC code with business partners, associates and vendors to update their records, recurring payments and receivables well in time. All existing cheques issued to the third party will have to be replaced with new cheques before February 28, 2022. Any cheque with old MICR codes presented after the aforementioned date will not be honoured.New cheque books (with new MICR code) have been available since 1st November 2021. Customers ..
The International Financial Services Centres Authority (IFSCA) on Thursday set up an expert panel headed by former Enviornment and Forest Secretary C K Mishra to suggest a framework to develop a world-class sustainable finance hub at IFSC. India aspires to be a frontrunner in climate action, which is evident in its commitment towards its intended Nationally Determined Contributions under Paris Agreement, IFSCA said in a statement. "Raising financial resources for climate change adaptation and mitigation actions of this scale needs active participation of international investors. IFSCA envisions GIFT- IFSC as a global hub for sustainable finance thereby acting as a gateway for channelizing foreign capital into India," it said. In its endeavour to develop the required ecosystem, IFSCA has constituted a 10-member Expert Committee to recommend approach towards development of Sustainable Finance Hub and provide a road map for the same. As per the terms of reference, the panel would ...