Budget 2023: GIFT City gets a big boost as govt announces several sops

Pnotes issued at IFSC will be recognised by bourses; as on December 2022, FPIs' pnote holding at just Rs 96,000 cr

In a bid to give a fresh fillip to the Gujarat International Finance Tec-City (GIFT), Finance Minister Nirmala Sitharaman in the Union Budget 2023-24 permitted acquisition financing, recognised offshore derivative instruments, and set up a single-window registration for approvals.

The Budget provided acquisition financing by units of foreign banks set up at the International Financial Services Centre (IFSC) — a move that will bring down the cost of financing for outbound mergers and acquisitions (M&A).

Under the current regulations, Indian banks and branches of foreign banks in India are restricted from providing financing for acquisition of shares.

“The Budget proposes