s release (Aug 2, 2025) on the Expert Committee Report for positioning GIFT IFSC as a Global Commodity Trading Hub:
- India, one of the world’s largest commodity importers, is highly exposed to global price volatility and lacks strategic leverage in international commodity markets.
- Much of India’s commodity trade is currently routed through offshore hubs (like Singapore, Dubai), leading to economic loss and reduced global influence.
- GIFT IFSC was created to “onshore the offshore” and serve as India’s global financial hub.
Expert Committee (May 2024)
- Tasked with recommending how GIFT IFSC can evolve into a Global Commodity Trading Hub.
- Consultations included benchmarking against global hubs and industry feedback.
Key Recommendations
- Regulatory Enablement
- Notify commodity trading (including merchanting) as “financial services” under IFSCA Act.
- Allow OTC derivatives, expand exchange-traded commodity derivatives, and permit re-invoicing in IFSC.
- Policy Alignment
- Exempt IFSCA-regulated traders from RBI’s merchanting restrictions.
- Amend FEMA to allow centralized hedging for Indian entities.
- Offer Right of First Refusal (ROFR) to IFSC entities for govt. procurement.
- Permit voyage charter-based shipping by IFSC traders.
- Banking & Tax Incentives
- Amend Banking Regulation Act to allow banks in IFSC wider commodity trading.
- Extend tax holiday for IFSC units from 10 → 25 years (till 2047).
- Introduce concessional tax regime for overseas professionals in IFSC.
- Infrastructure & Logistics
- Build warehousing/logistics near ports.
- Exempt IFSC entities from customs filings for offshore deals.
- Financial Innovation
- Allow structured finance, securitization of commodity-linked assets, trade finance bond listings.
- Promote CBDC-based trade finance and commodity-backed funding.
- Ecosystem Development
- Attract global banks & financial institutions.
- Engage Indian diaspora commodity traders.
- Create advanced trading platforms integrated globally.
- Invest in workforce development & training.
Strategic Vision
- Aligns with India’s “Viksit Bharat 2047” goal.
- Aims to transform GIFT IFSC into a globally competitive hub, driving growth across supply chains, logistics, exports, and finance.
- IFSCA will review and coordinate with the Government for implementation.
IFSCA press release August 05, 2025 IFSCA Issues Master Circulars for Capital Market Intermediaries in IFSC
The International Financial Services Centres Authority (IFSCA) has released Master Circulars for seven categories of capital market intermediaries under the newly notified IFSCA (Capital Market Intermediaries) Regulations, 2025 (effective April 11, 2025).
The categories covered are:
- Credit Rating Agencies
- Debenture Trustees
- Distributors
- ESG Rating & Data Product Providers
- Investment Advisers
- Investment Bankers
- Research Entities
The Master Circulars consolidate all relevant circulars and guidelines into a single reference point to enhance ease of doing business and provide clarity on operational requirements.
They cover aspects such as:
- Registration process & validity
- Permissible activities
- Governance & code of conduct
- KYC, AML, and CFT compliance
- Outsourcing & complaint handling
- Change in control & periodic reporting
- Cyber security & resilience
- Surrender of registration
This initiative aims to strengthen the IFSC capital market ecosystem by ensuring fairness, efficiency, transparency, and streamlined regulation.
IFSCA press release August 12, 2025: IFSCA Unveils Revamped Framework for Global Market Access via IFSC
The International Financial Services Centres Authority (IFSCA) has introduced a new regulatory framework aimed at strengthening the role of India’s IFSC as a gateway to global capital markets. This initiative aligns with IFSCA’s objective to facilitate cross-border capital flows, enabling investors to diversify portfolios, hedge risks, and explore arbitrage opportunities.
Key highlights of the framework:
- Global Market Access via IFSC: Entities can now provide Indian investors, especially retail participants under the Liberalised Remittance Scheme (LRS), with regulated and transparent access to foreign stock exchanges.
- Investor Protection: Brokers and Global Access Providers operating physically within the IFSC will be regulated by IFSCA, safeguarding resident investors engaging in global markets.
- Onshoring of Trading Activities: The framework encourages foreign-based broker-dealers and proprietary trading entities to operate from the IFSC, consolidating cross-border trading within India.
- Robust Regulatory Norms: Comprehensive rules for Global Access Providers and Introducing Brokers aim to enhance market accessibility while ensuring investor protection, market integrity, and ease of doing business.
Overall, this framework positions the IFSC as a competitive, globally aligned hub for cross-border trading, strengthening India’s capital market ecosystem.