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Date: 2025-02-14 Category: Not Applicable State: Union Government Country: India

IFSCA Bulletin Oct-Dec 2024

Issued by International Financial Services Centres Authority · Not Applicable

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Executive Summary & Key Takeaways

Here's a summary of the provided IFSCA Bulletin, adhering to your specified structure and guidelines: **Executive Summary** The IFSCA Bulletin for October-December 2024, issued by the International Financial Services Centres Authority (IFSCA), provides updates on regulatory changes, IFSC business highlights, and developmental activities. It details new regulations, amendments to existing regulations, and guidelines impacting various sectors within the IFSC. The deadline for IFSC units to submit complete and accurate MPR and SERF data is the 5th of the succeeding month. **Key Points / Main Content** * **Authority Meeting:** * The 21st IFSCA Authority meeting was held on December 19, 2024, and approved IFSCA (Bullion Market) Regulations, 2025 and IFSCA (Fund Management) Regulations, 2025. * **Banking:** * Specified format for Payment Service Providers (PSPs) to provide information (October 8, 2024). * Directions to IBUs for operations of Foreign Currency Accounts (FCA) under LRS (October 10 & December 13, 2024). * IFSCA (Payment and Settlement Systems) Regulations, 2024 notified (October 14, 2024), including authorisation requirements for payment systems. * IBUs as participants on International Trade Financial Services (ITFS) platform (December 23, 2024). * **Capital Markets:** * Issued Master Circular for Credit Rating Agencies (October 01, 2024), consolidating operational guidelines. * Listing of Commercial Paper and Certificates of Deposit on IFSC Exchanges (October 17, 2024). * Framework for ESG Ratings and Data Products Providers in the IFSC (October 30, 2024). * Amendment to IFSCA (Market Infrastructure Institutions) Regulations, 2021 (November 01, 2024) to strengthen governance norms. * **Insurance:** * Consolidated IFSCA (Investment by IIO) Regulations, 2022 (November 05, 2024). * Consolidated IFSCA (Registration of Insurance Business) Regulations, 2021 (November 12, 2024). * **Finance Company:** * Guidelines for utilisation of office space or manpower by Finance Company(ies)/Unit(s) undertaking ship leasing activity in the IFSC (October 04, 2024) * **Fund Management:** * Clarifications in relation to Investment Restrictions on Retail Schemes set up in IFSCs (October 29, 2024). * Review of IFSCA (Fund Management) Regulations, 2022 (December 21, 2024). A consultation paper was issued, and new Fund Management Regulations 2025 incorporating approved changes will be notified shortly. * **AML/CFT:** * Exempting certain entities/activities from the applicability of IFSCA (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022 (November 18, 2024) * **Sustainable Finance:** * Principles to mitigate the Risk of Greenwashing in ESG labelled debt securities in the IFSC (November 21, 2024). * **Office of Administrator (IFSCA):** * IFSC units must submit Monthly Performance Reports (MPR) and Services Export Reporting Forms (SERF) in the SEZ Online portal by the 5th of the following month (December 23, 2024). * **Others:** * IFSCA (Informal Guidance) Scheme, 2024 (December 02, 2024) provides a mechanism for seeking clarity and guidance. **Impact Analysis** **Payment Service Providers** * **Impact:** Must comply with the specified format for providing information. * **Action Required:** Review specified format and ensure timely submission of required information. **International Banking Units (IBUs)** * **Impact:** Subject to new directions regarding Foreign Currency Accounts (FCA) under the Liberalized Remittance Scheme (LRS) * **Action Required:** Align FCA operations with new directions to ensure compliance with FEMA guidelines **Regulated Entities in the IFSC** * **Impact:** Subject to new guidelines for handling complaints and grievances of financial consumers, as well as changes in AML/CFT requirements. * **Action Required:** Review and update complaint handling policies, AML/CFT compliance measures to adhere to new guidelines and international agreements. **IFSCA Units:** * **Impact:** Timely and accurate reporting. * **Action Required:** Submit complete and accurate MPR and SERF data by the 5th of the succeeding month. **Fund Management Entities (FMEs):** * **Impact:** Subject to clarifications on investment restrictions for retail schemes and upcoming Fund Management Regulations 2025 * **Action Required:** Review investment strategies for retail schemes. Follow upcoming Fund Management Regulations 2025 **Issuers of ESG-labelled Debt Securities:** * **Impact:** To promote transparency, accountability and adequacy of disclosures to investors * **Action Required:** Follow five principles: Being True to Label, Transparency in methodology for project selection, Managing and tracking use of proceeds, Quantification of Negative Externalities, Monitoring and Disclose

Key Entities Referenced

International Financial Services Centres Authority (IFSCA): The primary regulator and issuer of this bulletin, responsible for developing and regulating financial services in International Financial Services Centres (IFSCs) in India. GIFT IFSC: Gujarat International Finance Tec-City International Financial Services Centre; the location and focus of the activities and regulations described in the bulletin. Fund Management Regulations: IFSCA regulations governing fund management activities within GIFT IFSC, updated in December 2024. Liberalized Remittance Scheme (LRS): A Reserve Bank of India (RBI) scheme allowing resident individuals to remit funds overseas, relevant to IFSC's international financial activities. IFSCA (Payment and Settlement Systems) Regulations, 2024: Regulations notified by IFSCA that specify the authorisation requirement for payment system providers in an IFSC.
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IFSCA BULLETIN OOCCTT--DDEECC 22002244 INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY www.ifsca.gov.inThe IFSCA Bulletin is issued by the Division of Economic Policy and Analysis, International Financial Services Centres Authority. The source of data/ information is the periodic reports submitted by the regulated entities to IFSCA. IFSCA has no objection to the material published herein being reproduced, provided an acknowledgement of the same is made. The soft copy of IFSCA Bulletin in PDF format can be freely downloaded from Reports and Publications section in IFSCA website (https://ifsca.gov.in) Any comments and suggestions on any of the features/ sections may be sent to the email id: dept-epa@ifsca.gov.inCHAIRPERSON’S DESK GIFT IFSC – Hon’ble Finance Minister has announced tax An emerging wealth management treatment under the specified fund regime for Retail hub for HNIs Funds and Exchange Traded Funds in the Budget for 2024-25. As a consequence, a few fund managers have registered Retails funds in the last quarter. In the recent Budget for 2025-26, Hon’ble Finance “We would be keen to host Minister also announced exemption from tax on life all major sovereign insurance policies issued by IFSC Insurance offices funds, pension funds on premium paid if the premium does not exceed 10% and endowment funds of the sum assured. apart from Insurance and Family Investment India is also currently home to over 850,000 resident K Rajaraman Funds in the IFSC in High Net Worth Individuals (HNIs), and this is Chairperson, IFSCA India.” 2 projected to double to 1.65 million by 2027 . In 2023, there was a steep rise in number of HNIs in India, in Vision of Hon’ble Prime Minister of India for fact, it was one of the best performers in the Asia ViksitBharat@2047 and India's economic stability Pacific region in terms of HNI wealth growth (12.4%) and consistent growth track record have inspired as well as HNI population growth (12.2%). foreign and domestic investors alike. The continuous Many resident HNIs prefer diversified investing in and clear reform agenda in replacing ageing laws global avenues, including Global stock markets. IFSC with modern business friendly laws, upgradation of is home to outbound funds pooling resident Indian financial sector regulations to meet global contributions for investments in Global standards, etc., have provided greater trust and opportunities. The following routes are available for certainty in Indian markets. resident entities and individuals for investing HNIs and UHNIs among India’s diaspora overseas: n u m bering 15 million Non-Resident Indians (NRIs) i. Reserve Bank of India's Liberalized and over 19 million Persons of Indian Origin (PIOs) Remittance Scheme (LRS), which enables are key stakeholders in the India Growth Story. In resident individuals to transfer of amounts 2024, NRIs sent USD 129 billion as remittances to annually for overseas investments, including banks in domestic India. The Indian Diaspora see foreign bank accounts, stocks, bonds, and real great value in investing in India. NRIs and PIOs investing in GIFT IFSC can save in USD or in any of estate, however it has an upper limit of USD the 14 freely convertible currencies permitted in GIFT 250,000 (around ₹1.87 crore). Outward IFSC. NRIs and PIOs can benefit from the special tax remittances under LRS were over USD 2400 regime and nominations for succession under Indian Million (as of Oct 2024).3 law. ii. Overseas Direct Investment (ODI) enables investing by resident entities in unlisted foreign GIFT IFSC is also a key instrumentality in facilitating entities through equity capital acquisition or inbound investments into India as AIFs in IFSC can subscription as per RBI regulations. The accept investments from NRIs and Overseas Citizens of India (OCIs) of up to 100%*. Additionally, automatic route for ODI caps the investments at investors in Category III AIFs are exempt from tax on USD 1 billion. The actual ODI outflow from India 1 distribution and redemption. 1 2 Asset-wealth-management-GIFT IFSC, PwC Rise of HNIs in 2024, The Hindu * Provided some conditions are met 3 RBI Bulletin, December 2024 IFSCA BULLETIN|OCT-DEC 2024CHAIRPERSON’S DESK in 2024-25 (as of November) was USD 12,195 global investor community. The funds in IFSC have Million.4 invested USD 5.88 Billion into India and many other countries, which demonstrates a healthy growth of IFSCA regulations enable manufacture of investment 25.5% over the previous quarter. We are also glad to products in Global currencies in forms such as witness the phenomenon of relocation of foreign Alternative Investment Funds (AIFs), Private Equity, schemes to GIFT IFSC picking up pace. structured deposits, bonds, unit-linked insurance policies, etc. by Regulated entities authorized by The seamless and tax neutral relocation facilitated by IFSCA. In addition to alternative investments, NRI the Government of India for AIFs has led 14 schemes HNIs often diversify their portfolio by investing in to redomicile to the IFSC from foreign jurisdictions. multiple avenues like commodities (like gold and In the recent budget, the scheme of relocation has silver), real estate and REITs, offshore funds, ETFs, been further expanded to allow the Retail Schemes international equities, ESG funds, etc. and ETFs to relocate to IFSC. Along with the globally benchmarked regulatory framework and competitive Fund Managers (FMEs) in GIFT IFSC are authorised taxation treatment available to funds in IFSC, the to provide a plethora of wealth management schemes relocation scheme is expected to further lead to the through the IFSCA Fund Management regulations, enhancement of the IFSC funds ecosystem. these, for instance, In order to support India’s NetZero@2070 agenda, IFSCA has waived the fee on the first ten ESG funds • Venture Capital Schemes (including Angel Schemes) – to facilitate investments by for FMEs. IFSCA is committed to not only attracting Accredited Investors / High Net worth investors foreign and domestic fund managers to GIFT IFSC in start-ups, emerging or early-stage venture but also promoting ESG principles in investment capital undertakings. decisions. As sustainable finance continues to grow • Restricted Schemes (Non-Retail Scheme) – to globally, this initiative will allow GIFT IFSC to be at facilitate investments by Accredited Investors / 5 the forefront of this evolving financial trend . High Net worth investors in a variety of strategies, broadly classified as Category I AIFs, Category II IFSCA has, in December 2024, approved an updated AIFs and Category III AIFs and Fund Management Entity Regulations. These • Retail Schemes – to facilitate investments of retail regulations have the following key updates that will investors in Mutual Funds. support greater traction for wealth management: The last quarter witnessed the culmination of the i. Minimum size of scheme is reduced from USD 5 review exercise for IFSCA's regulations for fund Mn to USD 3 Mn. management activities. As one of the fastest-growing ii. Minimum investment amount for PMS is reduced areas in IFSC, which has seen a robust growth in a from USD 150,000 to USD 75,000. short period, the industry today stands strong with iii. Validity of scheme documents expanded from 6 139 Fund Management Entities (FMEs) that have set months to 12 months along with provision for a up 198 schemes, of which 116 are Category III AIFs, one-time option for further extension. 70 are Category I & Category II AIFs, while the iv. Waiver from 10% ceiling on FME contribution remaining 12 are VC & Angel schemes. Across these subject to certain conditions. categories of schemes, fund managers in IFSC now v. Several relaxations for Fund of funds schemes, host a wide bouquet of investment offerings to meet such as the requirement for valuation, appointment of custodian, diversification norms, the appetite of global investors. The confidence in this etc., where such requirements are met by the jurisdiction and its regulatory architecture is visible master funds. in the participation by 2576 investors from more than vi. Simplification and streamlining of the eligibility 50 countries. With Retail Schemes now on the criteria of KMPs and process of their appointment horizon, these numbers are expected to grow further, creating wider recognition of GIFT IFSC amongst the 4 Dept of Economic Affairs 5 IFSCA Press Release IFSCA BULLETIN|OCT-DEC 2024CHAIRPERSON’S DESK As the evolving landscape of HNIs preferences is IFSCA has also licensed 16 Insurance Offices that explored, it is also observed that they entrust private currently offer retail insurance products to NRIs. firms known as ‘Family Offices’ to manage and grow These products include Unit Linked Insurance their wealth. These offices are either run by a single Policies, term life, health, travel, student education, wealthy family or by professional managers who serve etc. multiple rich clients. In India, there are around 140 GIFT IFSC presents a compelling opportunity for family offices that cater to extremely wealthy Resident and Non-Resident HNIs seeking to diversify individuals, defined as those with a net worth of over their investments and optimize returns. Amidst rising 6 USD 30 million . Many of these families operate currency volatility, the investor focus is increasingly family offices in multiple foreign jurisdictions to shifting towards GIFT IFSC as a safeguard against manage their wealth. GIFT IFSC can offer a cost- currency depreciation risk, owing to the use of freely effective solution for running a family fund with convertible foreign currency. wealth pooled from international jurisdictions. Coupled with strategic location, business-friendly Compared to Dubai, Mauritius, or Singapore, GIFT ecosystem, and favorable tax regime, the GIFT IFSC IFSC has lower living costs, rentals, and labour offers a unique advantage for investors looking to tap expenses. This makes it a cost-efficient home for into India's growth story and global opportunities. family offices. IFSCA is scaling up its supervisory systems and International Banking Units (IBUs) in GIFT IFSC implements a supervision plan that covers Regulated also offer term and structured deposits, besides Entities on risk-based principles. FATF compliant providing FPI services for HNIs investing into India. AML and CFT guidelines have been notified to ensure As on December 31, 2024, there were 6897 Non- that proceeds of financial crime do not find way into resident Indians and Foreigners who have deposited the GIFT ecosystem. over USD 1 billion in retail demand and term deposits in GIFT IFSC IBUs. One IBU has created an exclusive IFSCA also expects Regulated Entities, that provide Wealth Management Platform to serve non- financial services, to be sensitive to the needs of residents. We expect more IBUs to follow the suit. investors and respond promptly on Most IBUs have now launched web-applications that consumer/investor complaints. A complaint enable Non-residents or Resident Indians to open redressal process with recourse to IFSCA in case their accounts in IBUs and carry out transaction banking complaints are not redressed has been put in place. facilities. (https://ifsca.gov.in/Pages/Contents/Complaints ) 6 'Turning Ideas to Gold' - Praxis Global IFSCA BULLETIN|OCT-DEC 2024IFSC BUSINESS HIGHLIGHTS Total IFSCA 766 Registrations Banking Assets Cumulative Banking Cumulative Transaction Derivatives trade ( including NDF) USD ($) 78.2 Bn USD ($) 120 Bn USD ($) 107.3 Bn (as on Dec 2024) (During Oct-Dec 2024) Banking Sector Monthly Turnover Cumulative Debt Listing Aggregate Open (IFSC Exchanges) on Exchanges Interest of all Derivatives Contract 85.99 Bn 63.68 Bn 11.16 Bn USD ($) USD ($) USD ($) (Dec 2024) (upto Dec 2024) (month ended Dec 2024) Capital Market No of Fund No. of Funds/Schemes Total Commitments Management Entities Registered Raised 139 198 14.88 Bn USD ($) (upto Dec 2024) (upto Dec 2024) (upto Dec 2024) Fund Management Total Sustainable Cumulative ESG No. of Debt Listings on Credit by Banks labelled Debt Listing on IFSC Exchanges IFSC Exchanges 1549 Mn 15.43 Bn 10 USD ($) USD ($) Sustainable Finance (During Apr - Sep 2024) (as on Dec 2024) (During Oct-Dec 2024) No. of Qualified GOLD Traded on SILVER Traded on Suppliers/Jewelers IIBX IIBX 33/153 25.88 1.61 (as on Dec 2024) Bullion No. of Insurance Premium written by Premium transacted Firms/Intermediaries IFSC Insurance by IFSC Insurance Office Intermediary Office 16/25 USD ($) USD ($) (as at end of Dec 2024) Insurance Sector No. of Registered No. of Aviation Assets No. of Ships Leased Aircraft/Ship Lessors Leased 30/15 196 13 Aircraft/Ship Leasing (as at end of Dec 2024) )lanoisivorp( )lanoisivorp( (During Oct-Dec 2024) t t (During Oct-Dec 2024) (During Oct-Dec 2024) 49 Mn 59 Mn (During Oct-Dec 2024) (During Oct-Dec 2024) (month ended Dec 2024) (month ended Dec 2024)Contents ____________________________________________________________________________ Chairperson’s Desk.........................................................................................................................................................1 IFSC Business Highlights...............................................................................................................................................4 List of Tables.....................................................................................................................................................................6 Regulatory Updates........................................................................................................................................................8 Public Consultation.......................................................................................................................................................14 Events and Outreach Activities.................................................................................................................................15 Current Statistics..........................................................................................................................................................27List of Tables ____________________________________________________________________________ Table 1: Licenses/ Registrations issued by IFSCA based on SEZ LOAs..................................................................................................................27 Table 2: Approvals by SEZ Unit Approval Committee (prior to issue of IFSCA authorization)......................................................................27 Table 3: Number of IBUs......................................................................................................................................................................................................28 Table 4: Assets of IBUs........................................................................................................................................................................................................28 Table 5: Liabilities of IBUs..................................................................................................................................................................................................28 Table 6: Customer Deposits (in USD Mn).......................................................................................................................................................................28 Table 7: Non-Resident Deposits.........................................................................................................................................................................................29 Table 8: Derivative Outstanding of IBUs (USD Mn) (Notional)................................................................................................................................29 Table 9: ODI Outstanding of IBUs (USD Mn).................................................................................................................................................................29 Table 10: Industry wise credit exposure of IBUs.........................................................................................................................................................29 Table 11: Country wise exposure of IBUs.......................................................................................................................................................................31 Table 12: Number of Payment Service Providers (PSP).............................................................................................................................................31 Table 13: IFSC Stock Exchanges Turnover (Traded Value in USD Mn)..................................................................................................................31 Table 14: Aggregate Open Interest (OI) of all derivatives contracts on IFSC Stock Exchanges...................................................................32 Table 15: India INX Global Access....................................................................................................................................................................................32 Table 16: Trading in Global Exchanges through India INX Global Access (Traded Value: USD Mn).............................................................32 Table 17: Trading in Global Exchanges through India INX Global Access (Oct-Dec 2024: USD Mn)...........................................................32 Table 18: Capital Market Intermediaries as on Dec 31, 2024.................................................................................................................................32 Table 19: Listing of debt securities at IFSC Exchanges (In USD Bn).....................................................................................................................33 Table 20: Listing of debt securities at IFSC Exchanges.............................................................................................................................................33 Table 21: Overall Sustainable Financing by IBUs.........................................................................................................................................................33 Table 22: Sector-wise classification of Sustainable Financing by IBUs...............................................................................................................34 Table 23: Written/ Transacted premium by IFSC Insurance Offices (IIOs) and Intermediary Offices (IIIOs)...........................................34 Table 24: Line of Business wise Direct Insurance Business (Life and General).................................................................................................34 Table 25: Line of Business wise Re-insurance Business...........................................................................................................................................35 Table 26: Claims data (Retail / Re-insurance).............................................................................................................................................................35 Table 27: Number of Fund Management Entities (FMEs) and Funds.......................................................................................................................35 Table 28: Investments by Fund Management Schemes at GIFT IFSC as on Dec 31, 2024.............................................................................36Table 29: Investors in IFSC Funds as on Dec 31, 2024..............................................................................................................................................36 Table 30: Trends of Fund Management Activity...........................................................................................................................................................36 Table 31: Portfolio Management Services (PMS) as on Dec 31, 2024..................................................................................................................36 Table 32: Finance Companies/ Finance Units during Oct-Dec 2024....................................................................................................................37 Table 33: Assets leased by AOL/ Ship Leasing Entities.............................................................................................................................................37 Table 34: Transactions financed by ITFS Platforms....................................................................................................................................................37 Table 35: Business details of Global/Regional Corporate Treasury Centres (GRCTC)....................................................................................37 Table 36: Business details of Core Finance Companies (e.g. Lending, Export financing)...............................................................................37 Table 37: Participants on India International Bullion Exchange (IIBX).................................................................................................................37 Table 38: Regulated Entities/ Intermediaries on IIBX...............................................................................................................................................38 Table 39: Product-wise summary of trades on IIBX...................................................................................................................................................38 Table 40: FinTech Ecosystem in IFSC..............................................................................................................................................................................38 Table 41: Activity-wise break up of ancillary services entities...............................................................................................................................39 Table 42: Activity-wise break up of BATF entities approved including in-principal approval.......................................................................39IFSCA BULLETIN | OCT-DEC 2024 Regulatory Updates 8 Regulatory Updates _____________________________________________________________________________________ system provider for commencing or carrying on a Authority Meeting Payment System in an IFSC. Additionally, the regulations mandate the system provider to comply 21st IFSC Authority meeting was held on December with the Principles for Financial Market 19, 2024. During the meeting, following Agenda Infrastructures (PFMI) issued by Committee on items were placed and approved by the Authority: Payments and Market Infrastructures (CPMI) and International Organization of Securities i. IFSCA (Bullion Market) Regulations, 2025 Commissions (IOSCO). ii. IFSCA (Fund Management) Regulations, 2025 Format and manner of seeking authorisation to Banking commence or carry on a Payment System in an IFSC (October 23, 2024) Format for providing information by a Payment Service Provider (PSP) (October 08, 2024) Pursuant to the notification of the IFSCA (Payment and Settlement Systems) Regulations, 2024 on Pursuant to regulation 32 of the IFSCA (Payment October 14, 2024, the Authority has released the Services) Regulations, 2024, the Authority has application form that is required to be submitted by specified the information that shall be submitted by any applicant desirous of commencing or carrying the Payment Service Provider(s) (PSP) authorised on a Payment System in an IFSC. The application by the Authority in relation to its operations as a form has 2 parts. Schedule-I is a general PSP. information form that is required to be filled by any applicant for getting registered with the Authority. Directions to IBUs for operations of the Foreign Schedule II contains the specific requirements relating to the provision of payment systems by the Currency Accounts (FCA) of Indian resident system provider in IFSC. individuals opened under the Liberalised Remittance Scheme (LRS) (October 10, 2024) IFSCA (Registration of Factors and Registration of Assignment of Receivables) Regulations, 2024 IFSCA, in exercise of the powers conferred by Section 13 of the IFSCA Act, 2019, read with (November 22, 2024) Regulation 20 of the IFSCA (Banking) Regulations, 2020 (as amended), issued a circular which is IFSCA (Registration of Factors and Registration of applicable to IBUs opening FCA of resident Assignment of Receivables) Regulations, 2024 were individuals as permitted vide A.P. (DIR Series) notified on November 22, 2024. The objective of the Circular No.15 pertaining to ‘Remittances to regulations is to provide for the manner of granting International Financial Services Centres (IFSCs) certificate of registration to Factors and filing of under the Liberalised Remittance Scheme (LRS)’ particulars of transactions with the Central Registry dated July 10, 2024, issued by the RBI. by a Trade Receivable Discounting System (TReDS) on behalf of the Factors under sub-section (1A) of section 19 of the Factoring Regulation Act, 2011 (12 IFSCA (Payment and Settlement Systems) of 2012). Regulations, 2024 (October 14, 2024) IBUs as participants on International Trade Using its powers under the Payment and Settlement Systems Act, 2007, the Authority notified the IFSCA Financial Services platform (December 23, 2024) (Payment and Settlement Systems) Regulations, 2024 on October 14, 2024. The regulations inter The ITFS guidelines dated July 9, 2021, were alia specifies the authorisation requirement for the reviewed and new guidelines have been issued forIFSCA BULLETIN | OCT-DEC 2024 Regulatory Updates 9 further ease of business for participants on ITFS of drafting of the circular has taken into account platform which includes IBUs. IBUs can undertake global best practices and the principles laid out by Factoring, Reverse Factoring, Bill discounting IOSCO. under Letter of Credit, Supply Chain Financing, The master circular spells out comprehensive Pre-shipment Credit and Forfaiting on the ITFS regulatory requirements on various aspects such as platform. Further IBUs can undertake secondary registration process, permissible activities, credit market transactions for these activities. rating activities, governance, ESG Ratings and Data Products Providers, Valuation and Reporting. Directions to IBUs for operations of the Foreign Currency Accounts (FCA) of Indian resident Listing of Commercial Paper and Certificates of individuals opened under the Liberalised Deposit on the recognised stock exchanges in the Remittance Scheme (LRS) (December 13, 2024) IFSC (October 17, 2024) The revised Directions to IBUs for operations of the The key objective of the Circular is to enable listing FCA of Indian Resident Individuals (RI) opened of new products on the stock exchanges in the IFSC under the Liberalised Remittance Scheme (LRS) for providing an opportunity to the investors to was issued on December 13, 2024, so as to invest in short term instruments in the IFSC. This streamline the operations of the foreign currency will contribute towards development of the capital accounts, as per requirement under the applicable market ecosystem in the IFSC. FEMA Directions. The direction specifies the compliances required by the IBU while operating Framework for ESG Ratings and Data Products the FCA. Providers in the IFSC (October 30, 2024) Under this direction, IBUs are enabled to permit RI to open FCA for remitting funds from onshore India IFSCA issued a circular specifying the regulatory and from locations other than onshore India, under framework as a new category of intermediary under the Liberalised Remittance Scheme of the RBI, the IFSCA (Capital Market Intermediaries) subject to applicable provisions. The remitted Regulations, 2021. The regulatory norms have been amount may be further deployed by the RI for laid down pursuant to benchmarking the global best availing financial products or financial services, as practices, IOSCO report and Code of Conduct defined in section 3 (1) (d) and 3(1) (e), respectively, published by ICMA. of the IFSCA Act, 2019 (IFSCA Act), within IFSCs The circular has details regarding various aspects and/ or for undertaking all permitted current or such as applicability, registration, net worth, fit and capital account transactions, in any foreign proper, permissible activities, code of conduct, ESG jurisdiction (i.e. other than IFSCs). rating process, continuing disclosures etc. The regulatory framework for ERDPPs is an important Capital Markets step towards developing the ecosystem for sustainable finance within GIFT IFSC in a transparent and regulated manner. Master Circular for Credit Rating Agencies (October 01, 2024) IFSCA (Market Infrastructure Institutions) IFSCA issued the Master Circular for Credit Rating (Amendment) Regulations, 2024 (November 01, Agencies, consolidating the operational guidelines 2024) for permitted activities by the registered CRAs. Amendments in IFSCA (Market Infrastructure The master circular supersedes various circulars Institutions) Regulations, 2021, primarily to issued earlier by IFSCA on credit rating agencies strengthen governance norms of the MIIs. MIIs are and all the circulars and guidelines issued by SEBI vested with regulatory responsibilities, while (prior to October 01, 2020) in respect of credit pursuing commercial interests like other profit- rating agencies registered with IFSCA. The process oriented entities.IFSCA BULLETIN | OCT-DEC 2024 Regulatory Updates 10 It is important that the MIIs, in pursuance of their IFSCA, maintenance of records, disclosures on business objectives, should not lose sight of their website and annual report, reporting and regulatory roles. The MIIs are also the first line maintenance of online system for complaint regulators for the CMIs such as Broker-Dealers, handling. The circular comes into force with effect Clearing Members and Depository Participants. from April 01, 2025. Because of the conflicting nature of the MII’s role, it is felt that governance standards of MIIs need to be Insurance robust to enhance and maintain market confidence and deter malpractices. Corporate Governance Consolidated IFSCA (Investment by IIO) becomes even more significant in an IFSC context, where MIIs engage in global connect arrangement. Regulations, 2022 (November 05, 2024) Therefore, to ensure accountability and mitigate potential conflict between regulatory and business- Subsequent to the IFSCA (Investment by IFSC development roles of employees of the MIIs, the Insurance Office) (Amendment) Regulations, 2024, amended regulations have incorporated provisions a consolidated version of the said regulations was for MIIs to ring-fence the functions and personnel placed on the website of the IFSCA, keeping in view pertaining to regulatory, compliance, risk the ease of doing business for Regulated Entities management, and investor grievances from the rest (REs). of the functions. Consolidated IFSCA (Registration of Insurance Also, a more comprehensive code of conduct for the Business) Regulations, 2021 (November 12, 2024) MIIs and their governing board, directors, committee members, and key management Subsequent to the amendment to IFSCA personnel has been specified. Other key (Registration of Insurance Business) Regulations, amendments include the provisions for the 2021 in light of the amendments notified by the appointment of a Chief Risk Officer, Chief Legal IRDAI on August 22, 2023, to its (Re-insurance) Officer, and Chief Information Security Officer, and Regulations, 2018 and the launch of Single Window a requirement for a recognised clearing corporation IT System (SWITS) platform with common to develop a framework for the orderly winding application form, a consolidated version of the said down of its operations. regulations was placed on the website of the IFSCA, keeping in view the ease of doing business for REs. Complaint Handling and Grievance Redressal by Regulated Entities in the IFSC (December 02, 2024) Finance Company IFSCA issued a circular specifying the norms and requirements for handling of complaints and Guidelines for utilisation of office space or redress of grievances of financial consumers by manpower or both by Finance Company(ies)/ regulated entities in the IFSC in a fair, transparent, Unit(s) undertaking ship leasing activity in the IFSC professional and impartial manner. (October 04, 2024) The regulatory framework has been issued with the objective to safeguard the interests of financial The Ministry of Commerce and Industry vide consumers in the IFSC, which is essential for Gazette Notification dated March 14, 2024, had building confidence of consumers and fostering amended rule 21B of the SEZ Rules 2006, to enable trust and credibility in the financial markets in the ship leasing unit in IFSC to utilise the office space IFSC. or manpower or both of another unit in IFSC for the purpose of ship leasing, with the approval of the The framework provides detailed norms and Authority. Pursuant to the above notification, the requirements inter alia relating to having a policy Authority issued these guidelines specifying the for complaint handling and grievance redressal, condition and processes by which an FC/FU procedure for complaint handling along with undertaking ship leasing in IFSC may avail this timelines, appeal mechanism, complaint before facility as issued in case of aircraft leasing entities.IFSCA BULLETIN | OCT-DEC 2024 Regulatory Updates 11 Amendment to the ‘Framework for Aircraft Lease’ Fund Management with regard to transactions with person (s) resident in India (October 30, 2024) Clarifications in relation to Investment Restrictions on Retail Schemes set up in IFSCs (October 29, IFSCA revised the ‘Framework for Aircraft Lease’ by inclusion of an additional clause which clarified 2024) nature of transactions that IFSC lessors can IFSCA issued clarification regarding investment undertake with Indian residents. Accordingly, the restrictions for retail schemes under the Fund revised framework clarifies that no person(s) Management Regulations, 2022. To support retail resident in India may sell, transfer, lease, or schemes, the Authority exempts certain limits on otherwise dispose (‘disposal’) any asset(s) covered investments in unlisted securities, including the under the said framework, or any right or interest 15% ceiling for open-ended schemes, USD 10,000 related to such assets, to a Finance Company minimum for close-ended schemes, and the 50% engaged in aircraft leasing activity, in ceiling for unlisted securities in close-ended circumstances where such assets, on or after its schemes. FMEs managing fund-of-funds must disposal, will be operated or used solely by disclose details of underlying schemes and any person(s) resident in India or to provide services to association with their managers. This circular takes person(s) resident in India. However, the effect immediately under the IFSCA Act, 2019, and restrictions mentioned above will not apply in regulation 146 of the Fund Management situations where: (i) the disposal is made to a Lessor Regulations, 2022. who is not a 'Group Entity' of the individual(s) involved as per the said Framework and (ii) such Review of IFSCA (Fund Management) Regulations, disposal is to a Lessor as part of sale and leaseback arrangement of such assets which are being 2022 (December 21, 2024) imported into India for the first time. In the ongoing efforts to strengthen the regulatory framework for fund management within the IFSC Guidelines on setting up and operation of while simplifying processes and reducing International Trade Finance Service Platform compliance costs, IFSCA issued a consultation (ITFS) (December 23, 2024) paper on August 05, 2024, inviting public comments on the proposed amendments to the Replacing the earlier guidelines for ITFS, the IFSCA (Fund Management) Regulations, 2022. updated guidelines introduce several enhancements, including streamlined eligibility Following a thorough review and analysis of the criteria for setting up ITFS, the adoption of on-tap feedback received, the proposed changes were registration instead of a fixed application window, discussed in the meeting of the Fund Management and the expansion of permissible activities to Advisory Committee (FMAC) held on November 26, include secondary market transactions of TFUs and 2024. The revised regulations were deliberated at the facilitation of clearing and settlement of funds. the Authority meeting held on December 19, 2024, Additionally, the list of eligible participants now and subsequently a summary of the key decisions of includes payment service providers. Stakeholders the Authority were informed through a press can refer to the press release on the revised release. guidelines for a detailed understanding of the key The new Fund Management Regulations 2025, changes here. which incorporate the approved changes, will be notified in the gazette shortly.IFSCA BULLETIN | OCT-DEC 2024 Regulatory Updates 12 AML/CFT Sustainable Finance Exempting certain entities/activities from the Principles to mitigate the Risk of Greenwashing in applicability of IFSCA (Anti Money Laundering, ESG labelled debt securities in the IFSC (November Counter-Terrorist Financing and Know Your 21, 2024) Customer) Guidelines, 2022 (November 18, 2024) While there is no universally accepted definition/taxonomy of greenwashing, the term This Circular exempt certain entities/activities “Greenwashing” generally refers to the deceptive from the applicability of the IFSCA practice of making unsubstantiated, false, vague, (AML/CTF/KYC) Guidelines, 2022, subject to the exaggerated or misleading claims regarding the condition that such entities shall conduct and sustainability benefits of a product, service, or document a Business Risk Assessment. Where such business operation. It also includes practices such assessment envisages any AML/CTF risks, the as concealing, omitting, or hiding relevant entities shall comply with the Prevention of Money information in sustainability claims and use of Laundering Act, 2002, and the rules made words, labels, symbols, and imagery placing thereunder, as well as the IFSCA (AML/CTF/KYC) emphasis on positive environmental aspects while Guidelines, 2022. Furthermore, all Financial downplaying or concealing harmful attributes. Institutions are required to transact or receive monetary consideration only through an account There is growing concern globally amongst maintained with a Banking Unit in IFSC. stakeholders, including investors, regarding the accuracy and reliability of claims made by issuers Procedure for implementation of Section 51A of the about the sustainability benefits of the projects or assets they invest in. With the growing listing of Unlawful Activities (Prevention) Act, 1967- Change ESG-labelled Debt Securities on the IFSC in the details of the Central [Designated] Nodal exchanges, establishing a robust framework to Officer (November 18, 2024) address the issue of greenwashing is imperative. This Circular is issued to bring to the notice of the This circular is issued in order to promote Regulated Entities in IFSC about the Corrigendum transparency, accountability and adequacy of dated April 22, 2024, issued by Ministry of Home disclosures to investors, which prescribed the Affairs, CTCR Division/ CFT Cell. The Corrigendum following five principles for the issuers of ESG updates the details of the Central [Designated] labelled Debt Securities. Nodal Officer responsible for implementing Section 51A of the Unlawful Activities (Prevention) Act, i. Being True to Label - Avoid misleading labels 1967. and terminology ii. Screen the Green - Transparency in methodology for project selection and Modifications under the IFSCA (Anti Money iii. evaluation Laundering, Counter-Terrorist Financing and Know iv. Walk the talk - Managing and tracking use of Your Customer) Guidelines, 2022 (November 22, proceeds v. Overall Impact - Quantification of Negative 2024) Externalities This Circular is issued to modify certain provisions vi. Be alert - Monitoring and Disclose of the IFSCA (AML/CTF/KYC) Guidelines 2022 with respect to Requirements/ Obligations under International Agreements Communications from International Agencies (Chapter XI) and Group- wide Programmes (clause12.2).IFSCA BULLETIN | OCT-DEC 2024 13 Office of Administrator (IFSCA) Others Submission of Monthly Performance Report (MPR) IFSCA Informal Guidance) Scheme, 2024 and Services Export Reporting Form (SERF) by IFSC (December 02, 2024) Units (December 23, 2024) The Scheme is aimed at providing a mechanism for seeking clarity and guidance inter-alia on various The office of Administrator (IFSCA) issued PUBLIC issues pertaining to a potential business activity and NOTICE No. 03/2024-25 dated December 23, transactions, which are under the regulatory ambit 2024, whereby the IFSC units have been directed to of the IFSCA and on other legal issues emanating submit their complete and accurate MPR and SERF from the acts administered by IFSCA. data in the SEZ Online portal as on the last day of every month by the 5th of the succeeding month. Failure to submit the reports in the portal shall be viewed seriously and may invite appropriate penal action.IFSCA BULLETIN | OCT-DEC 2024 Public Consultation 14 Public Consultation _____________________________________________________________________________________ ii. It also provides for new regulatory approach for Capital Markets distributors, ESG Ratings and Data Products Provider and Broker Dealers desirous of Consultation paper on Principles to mitigate the accessing global markets only risk of greenwashing in ESG labelled debt iii. The minimum net worth requirements for various categories of intermediaries have been securities in the IFSC (October 04, 2024) rationalized IFSCA has issued a consultation paper to seek iv. The new regulations provide more clarity on comments and suggestions from the public and appointment of Principal Officer, Compliance stakeholders on Principles to mitigate the risk of Officer and other human resources in the IFSC greenwashing in ESG labelled debt securities in the v. There are several other changes, including IFSC. alignment of definitions of “key managerial personnel”, “control”, “fit and proper” criteria with other regulations notified by the Authority. Consultation paper on the proposed IFSCA (Capital Market Intermediaries) Regulations, 2024 The new regulations aim to promote ease of doing (November 21, 2024) business for the entities participating in the capital markets by simplifying and rationalizing the IFSCA issued a consultation paper on Nov 21, 2024, requirements based on feedback and suggestions to seek comments and suggestions from the public received from the stakeholders. and stakeholders on the draft IFSCA (Capital Market Intermediaries) Regulations, 2024. The Consultation Paper on proposed IFSCA (KYC purpose of the proposed new regulations is to Registration Agency) Regulations, 2024 (December provide the revised regulatory framework for registration, regulation and supervision of capital 06, 2024) market intermediaries set up in the IFSC. Earlier, The purpose of the proposed IFSCA (KYC the regulatory framework for capital market Registration Agency) Regulations, 2024 (“KRA intermediaries in the IFSC have been issued under Regulations”) is to provide the regulatory the IFSCA (Capital Market Intermediaries) framework for the registration, regulation, and Regulations, 2021. supervision of KRAs set up in the IFSC. The The draft regulations have been proposed based on objective is to enable the KRAs to set up in the IFSC the global best practices and have taken into and to centralize the KYC records of the account the IOSCO Principles relating to regulation clients/customers onboarded by various types of of intermediaries. regulated entities to facilitate smooth onboarding of the clients/customers by Regulated Entities and The salient features of the New CMI Regulations, enhance their efficiency with respect to Customer include: Due-Diligence (CDD). i. The new regulations provide the regulatory framework for “Research Entity” as a new category of IntermediaryIFSCA BULLETIN | OCT-DEC 2024 Events and Outreach Activities 15 Events and Outreach Activities _____________________________________________________________________________________ Roundtable Conference: Opportunities for US Developmental Activities Institutions in GIFT IFSC GIFT IFSC New York Conference 2024: Fund During the IFSCA high-level delegation visit to the Management and Capital Market Opportunities in US, a roundtable conference was organized in GIFT IFSC collaboration with the Consulate General of India in New York and ICAI and was attended by 50+ During the IFSCA high-level delegation visit to the professionals from the financial services industry US, a conference was organised in New York to including CA professionals. Chairperson, IFSCA highlight the opportunities for Fund management emphasised on the vision of Government to make and Capital Market in Gift IFSC. During the GIFT IFSC a “Global Finance and Accounting hub” conference, the Chairperson, of IFSCA addressed and highlighted the outsourcing opportunities the participants by highlighting significant available for US Accounting Professionals under the achievements of India in critical sectors such as recently notified IFSCA (Book-keeping, infrastructure, green energy, asset monetization, Accounting, Taxation and Financial Crimes trade and investments, etc. He also emphasized the Compliance Services) Regulation 2024. latest regulatory and business developments in GIFT IFSC, which have opened compelling opportunities for US institutions. Dr. Dipesh Shah, Executive Director, IFSCA made a Later, Dr. Dipesh Shah, Executive Director, IFSCA detailed presentation on the IFSCA Regulations and made a detailed presentation on IFSC business Frameworks such as BATF, FinTech Entity opportunities across banking, funds industry, Framework, Fund Management Regulations, etc. capital markets, fintech, etc. He highlighted various facets of IFSCA Fund Management Regulations and gave insights on the overall fund management ecosystem in GIFT IFSC.Events and Outreach Activities 16 IFSCA BULLETIN | OCT-DEC 2024 IFSCA delegation visit to UAE and Qatar Meeting with Dr. Maryam Alsuwaidi, CEO, Securities & Commodities Authority (UAE – IFSCA delegation led by Mr. K. Rajaraman, SCA) Chairperson, IFSCA visited Qatar and UAE from November 10-13, 2024. During the visit, several conferences, roundtable meetings and one-to-one meetings were held with Banks, Fund Managers, Insurance firms, including: Interaction with Dr Tamy Ahmed Ali Al Boutamy Al Binali, CEO, Qatar Financial Markets Authority (QFMA) in presence of Mr. Sandeep Kumar, Deputy Chief of Mission, Embassy of India, Doha, Qatar Interaction with Qatari Businesses and Indian Diaspora in presence of Shri Vipul, Ambassador Meeting with Mr. Arif Amiri, CEO, Dubai of India to Qatar in Doha. International Financial Centre Meeting with Abu Dhabi Global Market’s Financial Services Regulatory Authority (ADGM’s FSRA)Events and Outreach Activities 17 IFSCA BULLETIN | OCT-DEC 2024 Interaction organised by Shri Sunjay Sudhir, management. The discussion covered various fund Ambassador of India in UAE, with Abu Dhabi structures and the applicable tax regime. based businesses and HNIs Interaction with Shipping Entities in Dubai Conference on ‘Booking Accounting Taxation & Financial Compliance Services (BATF) Interaction organised by the Embassy of India Opportunities in GIFT IFSC’ with Indian Businesses and HNIs organised by the CG of India to Dubai During the IFSCA delegation visit to Dubai, the ICAI (Dubai) Chapter – NPIO organised an engaging session to explore professional opportunities within India’s IFSC. Interaction on GIFT IFSC Investment Funds opportunities Chairperson, IFSCA addressed ICAI members During the IFSCA delegation visit to Dubai, a emphasizing the role of the IFSC in building a New session was organized with Fund Managers, Wealth India, Mr. Satish Sivan, Consul General of India in Managers, and Family Offices in which the Dubai, highlighted the growing India-UAE Chairperson, IFSCA, provided an overview of GIFT relations and Dr. Dipesh Shah, ED, IFSCA IFSC, describing it as a global platform for presented the promising business opportunities for investments into and out of India, aligned with the the professional community in IFSC. country’s "2047 Vision." Key highlights included financial sector reforms, ease of doing business, and the development of green bonds, capital markets, and leasing ecosystems. Dr. Dipesh Shah, ED, IFSCA, elaborated on opportunities for financial services businesses in GIFT IFSC, particularly focusing on fundEvents and Outreach Activities 18 IFSCA BULLETIN | OCT-DEC 2024 Shri Harsh Sanghavi, Hon’ble Minister of State – Home and Industries, Government of Gujarat speaking at the IFSCA Talent Summit The event also witnessed three enriching panel discussions on various themes associated with talent management in GIFT IFSC, by distinguished IFSCA Talent Vista 2024 moderators and panelists. The details of the Panel discussions are as follows: IFSCA, supported by Quality Control of India (QCI) and University of Wollongong, organized 1st edition i. The inaugural panel discussion talked about of its “IFSCA Talent Vista 2024: Reimagining various facets involved in fostering industry- Future of Finance at GIFT IFSC” on November 15, academia collaboration. 2024, at GIFT City Club, GIFT City, Gandhinagar, Gujarat. This was an Academia-Industry Collaboration platform for talent development in GIFT IFSC. The purpose of the event was to enable effective collaboration of academia and corporates for getting the cutting-edge talent ready to cater to industry demand in GIFT IFSC with a vision to transform the city into a “New Age Global Financial Centre”. ii. The second panel discussed ways to meet talent needs in GIFT IFSC, a growing center for sectors like fintech, aircraft & ship leasing, and sustainable finance, among others. The event was graced by the Chief Guest, Shri Harsh Sanghavi, Hon’ble Minister of State – Home and Industries, Government of Gujarat, and included Key addresses by renowned speakers from industry and academia.Events and Outreach Activities 19 IFSCA BULLETIN | OCT-DEC 2024 iii. Dr. Dipesh Shah, ED, IFSCA, moderated the companies now no longer feel the need to move session on Enhancing the Competitiveness: operations abroad. Attracting Global Talent to GIFT IFSC as part of the IFSCA Talent Vista 2024. During the India Management Research Conference: IIM session, the panellist discussed on how Ahmedabad (IMRC) companies and startups can harness GIFT City’s ecosystem for scaling their operations. The IIM Ahmedabad organized a conference in panel also emphasized the critical role of skill behavioural science with the theme “The development, mentorship, and upskilling, along Psychology of Risk-taking: A Review of behavioural with innovative educational models to support aspects in financial decision-making.” Dr. Dipesh these efforts. Shah, Executive Director, IFSCA participated in the "India Management Research Conference 2024" (IMRC 2024) at IIM Ahmedabad and shared his views on the importance of decision-making in the mega projects in the sphere of psychology of risk- taking. Business Standard BFSI Insight Summit Dr. Dipesh Shah, ED, IFSCA, participated as a panellist in the panel discussion ‘How prepared is GIFT City in giving a boost to India's financial sector?’ held during the Business Standard BFSI India Business Forum 2024 Insight Summit on November 8, 2024, at the Jio World Convention Centre, Mumbai. Business Dr. Dipesh Shah, ED, IFSCA, was a keynote speaker Standard BFSI Insight Summit brings the entire in the “Unlocking Opportunities: The Strategic industry together to discuss the here & now and Potential of GIFT City” session at the Inaugural after, Insight Out! India Business Forum 2024 held on December 17, 2024, at Goa organized by Allinial Global. Allinial Global is a renowned association of independent accounting and advisory firms, consisting of 268 member firms across 109 countries with a combined revenue exceeding $6 billion. During the keynote session, Dr. Shah made a detailed presentation on the overall opportunities at GIFT IFSC, with a specific focus on BATF opportunities. During the discussion, Dr. Shah highlighted the notable advancement in GIFT IFSC including that the number of registered firms increased from 129 to over 725 after the government established the IFSCA, the unified regulator for GIFT City. He also emphasised that with the GIFT IFSC offering firms the benefits of offshore havens within India,Events and Outreach Activities 20 IFSCA BULLETIN | OCT-DEC 2024 Global Treasury Centre and Fintech Opportunities: Taiwanese delegation visit to GIFT City GIFT City On December 4, 2024, a 31-member Taiwanese delegation, led by Mr. D.C. Lei, visited GIFT City to Dr. Dipesh Shah, Executive Director, IFSCA, explore business opportunities for Taiwanese participated in the event "Global Treasury Centre financial institutions and understand the financial and Fintech Opportunities: GIFT City" organized by services ecosystem at GIFT IFSC. Axis Bank on December 9, 2024, in Mumbai. As part of the event, Dr. Shah delivered a special note The delegation comprised senior officials from on the "Opportunities at GIFT City IFSC" and TABF, the Central Bank of Taiwan, the Bankers highlighted various initiatives taken by IFSCA to Association of R.O.C., the Financial Supervisory develop GIFT IFSC as a hub for Global Treasury Commission, and leading Taiwanese banks. Centres and Fintech. During the visit, IFSCA officials delivered a detailed presentation on the business opportunities available within GIFT IFSC. Following the presentation, a Q&A session was held, addressing questions from the delegation. The delegation then interacted with select market participants from units already operating within GIFT IFSC. Market participants shared their experiences, challenges, and the support ecosystem in GIFT IFSC, highlighting the array of opportunities available. Next Billion Forum Suzuki Group hosted the “Next Billion Forum” at GIFT City on December 23, 2024. A large delegation from Japan, senior Government officials, industry leaders as well as experts participated in the event. The event was organized to mark the launch of Next Bharat Venture Fund-I from GIFT IFSC by the Suzuki Group. As part of the event, a presentation on GIFT IFSC The delegation participated in a tour of GIFT City, was made at the forum by Dr. Dipesh Shah, visiting world class infrastructure features such as Executive Director, IFSCA, highlighting various Automated Waste Collection System (AWCS), b) business opportunities available in GIFT IFSC for Utility Tunnel, District Cooling System (DCS) and Japanese institutions and investors. City Control and Command Centre (C4). The delegation then visited India INX, where a presentation was made by the India INX team highlighting its business operations, growth, and prospects for Taiwanese capital market intermediaries within the GIFT ecosystem. 3rd India-UK Financial Markets Dialogue The third meeting of India-UK Financial Markets Dialogue was hosted by Department of Economic Affairs, Ministry of Finance in GIFT City, Gujarat on December 12, 2024.Events and Outreach Activities 21 IFSCA BULLETIN | OCT-DEC 2024 The Dialogue was led by senior officials from the Capital Markets Indian Ministry of Finance and HM Treasury, with participation from Indian and UK regulatory Celebration of the IOSCO World Investor Week, agencies, including the Reserve Bank of India (RBI), the Securities and Exchange Board of India 2024 (SEBI), International Financial Services Centre Authority (IFSCA), Insurance Regulatory and IFSCA celebrated the IOSCO World Investor Week, Development Authority of India (IRDAI), Pension 2024 (WIW) during the week starting October 14, Fund Regulatory and Development Authority 2024. (PFRDA), the Bank of England (BoE) and the The IOSCO WIW is a global week-long campaign to Financial Conduct Authority (FCA). raise awareness about the importance of investor The Dialogue opened with reflections on education and protection and highlight the various developments since the last meeting in April 2023, initiatives of securities regulators. IFSCA, in including the opportunity presented by India’s coordination with the stock exchanges and other intention to release a financial sector vision and market participants celebrated the IOSCO World strategy and the UK’s commitment to publishing a Investor Week and participated in a series of events financial services growth and competitiveness (webinars, physical events, interaction with strategy. Both sides agreed to work to maximise students, short videos, messages on social media synergies. etc.) with the objectives to create awareness about the various opportunities in the IFSC for investors and to highlight the regulatory initiatives taken by IFSCA in the areas of securities regulation. The key themes for the WIW revolved around sustainable finance and technology. The various activities conducted were as under: Opening Bell Ringing Ceremony Shri Pradeep Ramakrishnan, ED, IFSCA rang the Delegates from India and the UK shared opening bell at NSE IX, on October 15, 2024, to perspectives on priorities and ongoing reforms commence the celebration of IOSCO World within their respective jurisdictions. The Dialogue Investor Week, 2024. focused on collaboration in evolving fields of Release of short video series by IFSCA financial regulation, noting the areas of mutual interest in both markets for increasing bilateral IFSCA released a series of nine short videos on trade and investment between the financial sectors. creating awareness about “GIFT IFSC - The Gateway to India” covering the following themes: Innovation was a key theme throughout the dialogue, acknowledging the importance of Fintech, and the key role of financial data in enabling • Message from Chairperson, IFSCA on the business activity. Both parties highlighted priorities occasion of IOSCO that threw light on how identified in the IUKFP Fintech and Data Paper IFSCA is committed towards protecting the published last year and agreed to host the next interests of investors meeting of the India-UK Fintech Joint Working • The IFSC Ecosystem - Then, now and the future Group in early 2025 to take forward agreed • What makes the IFSC a hotbed for innovation in priorities. Participants discussed related priorities, financial technology including the G20 payments roadmap, digital • Sustainable Finance payment connectivity, regulatory sandbox • IFSCA's Impact on Industry: Aircraft & Ship collaboration, collaboration on Central Bank Digital Leasing (Case Study) Currencies, and future cooperation on other • New Age Exchanges at the IFSC: India INX, emerging technologies including AI and Quantum NSE IX & IIBX computing.Events and Outreach Activities 22 IFSCA BULLETIN | OCT-DEC 2024 • Raising Debt Capital: A New Era for Indian iii. Shri Pradeep Ramakrishnan, ED, IFSCA Businesses addressed a seminar by ICSI in coordination • Direct Listing: A New Chapter for Indian with India INX on "Direct Listing, Investment Companies Opportunities in GIFT IFSC" at Ahmedabad. • International Banking Units at GIFT IFSC: A Gateway to Global Finance Social Media Campaign on a smart investor A social media campaign about WIW messages for a smart investor on the themes related to sustainable finance, investor resilience, frauds and scams prevention etc. was conducted during the WIW week. Webinars during WIW i. Shri Pradeep Ramakrishnan, ED, IFSCA, participated in a webinar organized by NSE IX iv. Shri Arjun Prasad, GM, IFSCA, participated in a and CII on "Fund Raising and Investment webinar organized by INDIA INX in Opportunities at GIFT City". He provided an collaboration with MFIN on "International overview about the regulatory framework in Capital Market Opportunities in GIFT IFSC". IFSC along with key features of new Listing Regulations. ii. Shri Pradeep Ramakrishnan, ED, IFSCA, participated in a webinar organized by NSE IX v. Shri Shubham Goyal, AGM, IFSCA participated on "Innovators in Climate Finance". He shared in a webinar organised by ANMI in coordination insights about the regulatory measures by with NSEI- X on "GIFT IFSC - Bridge for Indian IFSCA for developing GIFT IFSC as a Climate and Global Investors" and provided an overview Finance Hub. of the regulatory framework at GIFT IFSC.Events and Outreach Activities 23 IFSCA BULLETIN | OCT-DEC 2024 Closing Bell Ceremony WIW with senior officials of various financial institutions, fund managers, and PE/VC investors on the Shri Arjun Prasad, GM, IFSCA rang the closing bell opportunities in GIFT IFSC. during the ceremony organised by India INX and IIM Ahmedabad Alumni Association. He shared insights on the various opportunities in GIFT IFSC through an interactive session with IIMA Alumni and Angel/VC investors. Interactive session on 'Navigating GIFT City Issuances', Mumbai IFSCA is association with CareEdge and NSE International Exchange (NSE IX), held 'The Dialogue', an exclusive interactive session on Panel Discussion on “Leadership Dialogue: 'Navigating GIFT City Issuances', in Mumbai on Sustainable Finance Regulation and Policy” December 16, 2024. Shri Pradeep Ramakrishnan, ED, IFSCA participated in a Panel Discussion on “Leadership Dialogue: Sustainable Finance Regulation and Policy” during the 8th Annual ICMA & JSDA Conference held in Tokyo on November 22, 2024. The Panel delved into best practices followed by regulators in Asian jurisdictions on Sustainable Finance. Shri Pradeep Ramakrishnan shared insights on the various initiatives taken by IFSCA to develop GIFT IFSC as a hub for sustainable finance. Shri Arjun Prasad, GM, IFSCA also participated in Panel Discussion on “Strategic Insights into the the discussions and meetings. Future of Debt Markets” Shri Pradeep Ramakrishnan, ED, IFSCA and Shri Akash Boddeda, AM, IFSCA attended the India Debt Capital Market Summit 2024 on November 29, 2024. Shri Pradeep Ramakrishnan participated in the Panel Discussion on “Strategic Insights into the Future of Debt Markets” and shared his insights on the growth of the debt market including listing of GSS+ bonds in GIFT IFSC. Event on “Unlocking the GIFT City Opportunity” at Bengaluru An event was organized today by HDFC Bank on “Unlocking the GIFT City Opportunity” in Bengaluru on December 10, 2024. Shri K. Rajaraman, Chairperson, and other senior officials of IFSCA participated in the event and interactedEvents and Outreach Activities 24 IFSCA BULLETIN | OCT-DEC 2024 societal resilience”. Shri K Bhaskar, General Insurance Manager, IFSCA, represented IFSCA at the event. 20th Singapore International Reinsurance Conference The 20th Singapore International Reinsurance Conference (SIRC) 2024 saw over 3,300 participants, with nearly 2,000 joining in from overseas. The event was attended by stakeholders from insurance industry like insurance/reinsurance companies, intermediaries, bankers, insure tech companies, CAT modelling companies, cyber expert, credit rating agencies, Sustainable Finance insurance/reinsurance consultants and solution provide, exchanging platform etc. IVCA GreenReturns Summit, 2024 During the conference, IFSCA team led by the Executive Director (Insurance) had various The GreenReturns Summit 2024, was organized by meetings to discuss the GIFT IFSC Insurance the Indian Venture and Alternate Capital proposition with global reinsurers / intermediaries Association (IVCA) on December 2 and 3, 2024, in and various stakeholders. During these New Delhi. The Summit aimed to address the interactions, the team highlighted key regulatory pressing need for climate finance and to identify enablers, business incentives, and the ease of doing innovative solutions to drive sustainable business offered by IFSCA to attract international development. Shri K Rajaraman, Chairperson, players. IFSCA participated in a Fireside Chat on "Mobilizing Climate Finance: IFSC as a Global IFSCA Delegation visit to the USA Climate Finance Hub" at the IVCA GreenReturns Summit 2024. IFSCA Delegation led by Chairperson, IFSCA, with the various stakeholders during the visit to the During the discussion, Chairperson highlighted the United States of America (New York and San numerous opportunities that GIFT IFSC offers to Francisco) from October 21-25, 2024, during the global investors. He discussed various initiatives course of various conferences, meetings and undertaken by IFSCA to support sustainable roundtable interactions, met with various industry finance, including the promotion of ESG funds and players including Berkshire Hathaway Insurance sustainable lending by IFSC Banking Units (IBUs). Company, Starr Insurance Holdings Inc, Berkley He also emphasized the critical role of IFSCA’s Insurance Company etc. During these interactions, regulatory framework in developing a robust green the team highlighted key regulatory enablers, bond market within the GIFT IFSC. Furthermore, business incentives, and the ease of doing business the Chairperson extended an invitation to Fintech offered by IFSCA to attract international players. and Greentech startups to establish their presence at GIFT IFSC and leverage global market opportunities. IAIS Annual Conference The Conference took place on December 5-6, 2024, in Cape Town, South Africa. The conference brought together over 500 participants from more than 105 jurisdictions and speakers, engaging panel discussions and interactive roundtables to explore pivotal topics around the theme “Licence to operate: the role of insurance to strengthenEvents and Outreach Activities 25 IFSCA BULLETIN | OCT-DEC 2024 Shri Pradeep Ramakrishnan, Executive Director, IOSCO members of its Growth and Emerging IFSCA also participated in a panel discussion on Markets Committee (GEMC), representing 31 "Strategies for Increasing Climate Adaptation jurisdictions. The network aimed at supporting the Investments" at the GreenReturns Summit 2024. adoption and use of the IFRS Foundation’s In his remarks during the panel discussion, he sustainability reporting standards in emerging emphasized the critical need for increased markets. investments in climate adaptation, particularly in developing countries facing significant financing gaps. He also shared valuable insights on policy frameworks that can stimulate such investments. He further highlighted the robust ESG ecosystem at GIFT IFSC, including the attractive incentives available for ESG funds. Finance Company Quarterly meeting was organized with registered Core Finance Companies, aircraft and ship leasing entities to understand their business progress and address any issues related to market development. The Asia Climate Summit (ACS 2024) FinTech Asia Climate Summit (ACS), 2024 is being organised by International Emissions Trading Singapore FinTech Festival 2024 Association (IETA), in collaboration with the Federation of Indian Chambers of Commerce & IFSCA participated in the Singapore FinTech Industry (FICCI) and International Carbon Action Festival (SFF) held in Singapore on November 6, Partnership (ICAP) from October 22, 2024, to 2024. The event was attended by the Chairperson, October 24, 2024, in Delhi. IFSCA, who engaged in various bilateral meetings, Shri Pradeep Ramakrishnan, ED, IFSCA roundtable discussions, and panel sessions. participated as lead discussant in the session on ‘Investor - Corporate dialog on climate risk mitigation and management; State of Sector- Climate Action by India Inc 2024’ organised by cKinetics on the sidelines of the ACS2024. IOSCO Growth and Emerging Markets Committee - Network for Adoption or Other Use of ISSB Standards Session at European Union Supervisory Digital Finance Academy (EU-SDFA) IFSCA on December 18, 2024, participated in the launch of a dedicated network to support the Shri Joseph Joshy, CTO & CGM was invited to adoption and other use of IFRS Sustainability speak at the European Union Supervisory Digital Disclosure Standards (ISSB Standards), held in Finance Academy (EU-SDFA), Florence, Italy Ankara, Turkey, with the support of the established by the European Commission – International Sustainability Standards Board Directorate General (DG) Reform. 37 (ISSB). The Network started with a group of 32 representatives from 25 Countries representing 31Events and Outreach Activities 26 IFSCA BULLETIN | OCT-DEC 2024 Regulators (namely 14 Central Banks and 17 Market, Pension and Payment Supervisors) apart from representatives from European Banking Authority (EBA), European Securities and Markets Authority (ESMA), European Insurance and Occupational Pensions Authority (EIOPA) and EU- SDFA attended the Sessions. Session 1 titled "Digital Finance Experiences from non-European Jurisdiction" focussed on India Stack, IFSC Ecosystem including the FinTech Entity Framework and Sandboxes. Session 2 titled "Cross-sectoral trends and priorities in Digital Finance" was delivered by IFSCA in partnership with World Economic Forum (WEF) and ESMA.Current Statistics ____________________________________________________________________________________ Authorisation by IFSCA Table 1: Licenses/ Registrations issued by IFSCA based on SEZ LOAs Number of Licenses/ Registrations issued Segment Category During Oct-Dec 2024 As on Dec 31, 2024 IBUs 0 28 Banking GAO 0 2 Aircraft Lessors 3 30 Ship Lessors 3 15 Finance Company Finance Company – Core/ 3 13 Non-core (Including ITFS) MII 0 5 Broker Dealer 0 82 Depository Participant 0 10 Clearing Member 0 22 Capital Market Registered Distributors 1 11 Investment Advisors 0 3 Custodian 0 5 Debenture Trustee 0 4 Investment Banker 0 4 FMEs 11 139 Funds AIFs 30 198 IIOs 1 16 Insurance Intermediaries 1 25 Ancillary Services Ancillary Services Entities 4 68 Bullion MII 0 1 Bullion Bullion Intermediaries 0 19 Vault Managers 0 3 Direct 3 14 FinTech Sandbox 1 44 GIC GIC 0 3 International Branch Foreign University 0 2 Campus Total 61 766 Office of Administrator (IFSCA) Table 2: Approvals by SEZ Unit Approval Committee (prior to issue of IFSCA authorization) Particulars During Oct-Dec 2024 Till Dec 2024 UAC Meetings 13 32 New Unit Applications considered 85 280 New Unit Applications approved 84 276 LOA issued 74 261Banking Table 3: Number of IBUs Particulars As on Sep 30,2024 As on Dec 31,2024 No. of IBUs 28 28 Table 4: Assets of IBUs Month ended Oct 2024 Nov 2024 Dec 2024 Particulars USD Mn Investments 3834.72 3708.07 3924.03 Sovereign securities 1907.79 1704.11 2033.44 Corporate Bonds 1717.29 1709.62 1667.35 Other investments 209.64 294.34 223.24 Trade Finance 14178.91 14013.83 15184.29 Commercial Loans 32237.84 33538.26 35544.96 External Commercial Borrowing (ECB) 18429.76 19640.49 21007.81 Commercial Loans other than (ECB) 13808.08 13897.77 14537.15 Retail loans 97.30 96.32 94.69 Other loans 761.76 770.75 838.91 Interbank/Interbranch placements 15007.82 14723.86 18754.92 Others 3076.78 4087.12 3855.83 Total 69195.13 70938.21 78197.63 Table 5: Liabilities of IBUs Month ended Oct 2024 Nov 2024 Dec 2024 Particulars USD Mn Customer deposits 5461.70 5949.64 6317.05 Interbank/Interbranch borrowings 47752.90 48731.97 55002.35 Bilateral Borrowings 6939.94 6915.57 6986.23 Multilateral Borrowings 0.00 0.00 300.00 MTN Borrowings and other debt instruments 2997.22 2929.96 3037.52 Others 6043.37 6411.07 6554.48 Total 69195.13 70938.21 78197.63 Table 6: Customer Deposits (in USD Mn) Month ended Oct 2024 Nov 2024 Dec 2024 Deposits Demand Time Demand Time Demand Time Retail deposits 487.94 442.26 564.00 446.60 736.76 339.32 Corporate deposits 428.30 4103.20 472.56 4466.46 636.19 4604.78Table 7: Non-Resident Deposits Accounts Accounts held Accounts held Category Month held by by by Ended Resident Non-Resident Non-Residents (Amount in USD Mn) Indians Indians (NRIs) (Other Countries) No. of accounts 42 5460 652 Retail Amount 1.26 838.38 90.56 Oct 2024 No. of accounts 2153 591 1707 Corporate Amount 1196.93 1250.46 2084.11 No. of accounts 42 5822 630 Retail Amount 1.44 913.68 95.48 Nov 2024 No. of accounts 2182 579 1831 Corporate Amount 1205.33 1387.24 2346.45 No. of accounts 53 6192 705 Retail Amount 0.98 979.24 95.86 Dec 2024 No. of accounts 2248 622 1979 Corporate Amount 1328.20 1520.96 2391.81 Table 8: Derivative Outstanding of IBUs (USD Mn) (Notional) Month ended Oct 2024 Nov 2024 Dec 2024 FCY-INR Derivatives (to be settled in FCY) 31162.67 28496.53 38092.93 FCY-FCY Derivatives (to be settled in FCY) 15385.79 17207.95 20238.10 INR Interest Rate Derivatives (to be settled in FCY) 72941.98 78198.26 81084.61 FCY Interest Rate Derivatives (to be settled in FCY) 118864.51 112427.30 108980.67 Others 1463.65 1270.81 475.11 Total 239818.60 237600.85 248871.42 Table 9: ODI Outstanding of IBUs (USD Mn) Month Ended Oct 2024 Nov 2024 Dec 2024 Total ODI amount 709.23 234.38 355.98 Table 10: Industry wise credit exposure of IBUs Month ended Oct 2024 Nov 2024 Dec 2024 Sector Industries Amount Outstanding (USD Mn) Auto Components 174.31 170.09 152.73 Automobile 768.55 731.12 725.26 Capital Goods 244.63 265.62 283.23 Cement and Cement Products 1196.53 1199.36 1200.06 Electronic Systems 691.60 497.34 824.21 Food Processing 802.38 936.08 1028.30 Glass and Glassware 17.19 21.04 22.16 Iron & Steel 681.10 708.49 622.91 Laminates/ Plywood/ Boards 8.91 12.94 13.02 Leather and Leather Products 2.09 2.11 1.87Medical and Medical 289.08 287.72 285.06 Equipment Metals 1928.86 1791.18 1843.37 Paper and Packaging 66.19 65.58 67.62 Petrochemicals 4055.60 4027.18 4792.72 Plastic and Plastic Products 77.14 108.09 100.69 Textiles and Apparels 148.89 164.46 170.70 Vehicles, Vehicle Parts, and 141.70 184.97 179.70 Transport Equipment Banking and Finance 14399.36 14908.43 15436.81 Clearing Corporation 262.07 262.19 252.27 Education 163.98 165.06 162.79 Financial Services 2655.05 2836.84 3059.41 Healthcare 41.34 73.40 75.67 IT and Software Industry 379.92 367.73 395.94 Services Logistics 79.91 103.22 120.23 NBFC 6961.72 8212.49 9195.22 Professional Services 53.55 52.91 51.89 Retail and e-commerce 297.89 336.64 373.87 Telecommunication 1308.33 1409.47 1273.28 Tourism & Hospitality 220.14 219.35 223.87 Trade/Distributor 424.93 558.55 591.20 Construction 147.35 63.48 63.15 Mining 281.67 288.61 269.87 Oil and Gas 2453.52 2438.89 2279.01 Infrastructure Ports and Shipping 969.50 968.34 976.26 Power Sector 1559.41 1521.35 1606.73 Renewable Energy 436.61 452.47 509.41 Roads and Highways 58.01 32.47 36.74 Agriculture and 424.41 447.44 463.46 Forestry Aviation 423.60 410.01 336.50 Chemicals 1628.52 1701.76 1846.46 Jewelry 272.66 306.23 386.42 Paints 0.00 0.00 0.00 Pharmaceuticals 583.53 665.64 671.84 Other Sectors 3215.96 3157.29 3575.47 Total 50997.71 53133.65 56547.41Table 11: Country wise exposure of IBUs Oct 2024 Nov 2024 Dec 2024 Country %age of total Country %age of total Country %age of total Name exposure Name exposure Name exposure India 73.18 India 70.89 India 74.39 USA 5.00 USA 6.72 USA 5.62 Mauritius 3.83 UAE 3.33 UAE 3.34 Singapore 3.44 Mauritius 3.32 Mauritius 3.09 UAE 3.06 Singapore 3.00 UK 3.09 UK 3.04 UK 3.02 Singapore 2.96 Netherlands 2.48 Italy 2.71 Netherlands 2.06 Bahrain 1.05 Netherlands 1.54 Bahrain 0.99 Hong Kong 0.81 Bahrain 1.10 Hong Kong 0.69 Saudi Arabia 0.55 Hong Kong 0.63 Saudi Arabia 0.40 Others 3.56 Others 3.65 Others 3.37 Payment and Settlement Table 12: Number of Payment Service Providers (PSP) Particulars Total In-principle Approval Granted as on December 31, 2024 4 Capital Markets Table 13: IFSC Stock Exchanges Turnover (Traded Value in USD Mn) Month Oct 2024 Nov 2024 Dec 2024 Total No. of Traded No. of Traded No. of Traded No. of Traded Particulars contracts Value contracts Value contracts Value contracts Value Commodity 1612 139.62 1605 136.88 70 5.92 3287 282.42 Futures Index 2071584 101415.86 1823240 87018.76 1777407 84966.00 5672231 273400.62 Futures Index 200865 27.73 159079 17.73 137744 25.66 497688 71.12 Options Depository Receipts 66701 0.31 130833 0.68 138458 0.76 335992 1.75 on US stocks Total 2340762 101583.52 2114757 87174.05 2053679 84998.34 6509198 273755.91Table 14: Aggregate Open Interest (OI) of all derivatives contracts on IFSC Stock Exchanges As on last trading Open Interest Value (USD Mn) day of the month (no. of contracts) Oct 2024 274158 13351.64 Nov 2024 247105 11976.79 Dec 2024 235359 11156.39 Table 15: India INX Global Access During Oct-Dec 2024 Particulars As on Dec 31, 2024 (Accounts Opened) Total Number of Accounts 234 4403 Table 16: Trading in Global Exchanges through India INX Global Access (Traded Value: USD Mn) Entity Type Particulars Oct-Dec 2024 Till Dec 31, 2024 LRS Equity, ETFs, Funds, Bonds, and other 2.82 21.07 (Residents) products Equity, ETFs, Funds, and other products 41.73 552.50 IFSC Entities Derivatives Products 1469.49 3,196.43 Non-residents Equity, ETFs, Funds, and other products 34.11 49.94 outside IFSC Derivatives Products 5.11 1.82 Total 1,553.26 3,276.96 Table 17: Trading in Global Exchanges through India INX Global Access (Oct-Dec 2024: USD Mn) Total trading Trading in Trading in non- Exchange value Derivatives derivatives SGX 545.48 545.48 0.00 HKEX 400.09 400.09 - KSE* 330.84 330.84 - CME 122.62 122.62 - NASDAQ 46.92 - 46.92 COMEX 33.20 33.20 - ARCA 23.42 - 23.42 NYMEX 20.61 20.61 - CBOE 19.79 19.79 - Others 10.30 1.98 8.32 Total 1,553.26 1,474.60 78.66 *KSE stand for Korea Stock Exchange. the acronym 'KSE' is used for korea stock exchange as same is used by our overseas broker partner (Interactive Brokers LLC). Table 18: Capital Market Intermediaries as on Dec 31, 2024 Type of Entity No. of entities Broker-Dealers 82 Clearing Members 22 Custodians 5 Depository Participants 10Investment Bankers 4 Investment Advisers 3 Debenture Trustees 4 Distributors of Capital Market Products & Services 11 Sustainable Finance Table 19: Listing of debt securities at IFSC Exchanges (In USD Bn) Particulars As on Sep 30, 2024 As on Dec 31, 2024 Cumulative debt listings 61.907 63.68 Cumulative ESG labelled debt listing 14.78 15.43 Table 20: Listing of debt securities at IFSC Exchanges Amount Sr No Name of the issuer Listing Date Labels (USD Mn) 1 Shriram Finance Limited 07-10-2024 Social 500.00 2 Muthoot Finance Limited 25-10-2024 - 400.00 3 Satin Credit care Network Limited 07-10-2024 - 7.50 4 Piramal Capital & Housing Finance Limited 14-10-2024 Sustainable 150.00 5 IRB Infrastructure Developers Limited 18-10-2024 - 200.00 6 Muthoot Microfin Limited 08-11-2024 - 3.00 7 State Bank of India 26-11-2024 - 500.00 8 TruCap Finance Limited 30-12-2024 - 5.00 9 Namdev Finvest Private Limited 11-12-2024 - 3.00 10 Varthana Finance Private Limited 30-12-2024 - 15.00 Table 21: Overall Sustainable Financing by IBUs During Apr-Sep 2024 Short term Loans (USD Mn) Cumulative Medium / Long Classification in FY 2024-25 Working Term Loans Trade (USD Mn) Capital/ Supply Others (USD Mn) Finance Chain Finance Green 617.15 79.53 12.35 31.55 740.59 Social 230.68 366.28 4.05 0.00 601.01 Sustainable 44.63 116.60 0.00 0.00 161.23 Sustainability 46.51 0.00 0.00 0.00 46.51 Linked Others 0.00 0.00 0.00 0.00 0.00 Total 938.97 562.41 16.40 31.55 1549.34 7 The data of Cumulative debt securities changed to USD 61.90 Bn from USD 63.90 Bn (previously reported) for Q2 of 2024 on account of the revised reporting by the Stock Exchanges.Table 22: Sector-wise classification of Sustainable Financing by IBUs During Apr-Sep 2024 Sector (List is Indicative) Amount Total No. of (USD Mn) Transactions Renewable Energy 813.85 219 Energy Efficiency 0.50 5 Pollution Prevention and Control 5.50 6 Sustainable Water and Wastewater Management 0.00 0 Clean Transportation 12.35 2 Climate Change Adoption 0.00 0 Green Buildings 4.50 2 Affordable Basic Infrastructure 47.00 1 Affordable Housing 1.23 4 Food Security and Sustainable Food Systems 0.00 0 Social Project as per Framework 150.00 1 Sustainable Project as per Framework 0.00 0 Health Care 18.78 37 Social Education 0.00 0 Social Loan 13.64 0 MSME 266.83 3253 Others 215.16 870 Total 1549.34 4400 Insurance Table 23: Written/ Transacted premium by IFSC Insurance Offices (IIOs) and Intermediary Offices (IIIOs) FY 2023-24 Apr-Sep 2024 (Unaudited) Oct-Dec 2024 (Unaudited) Written/ Written/ Written/ Particulars Number of Transacted Number of Transacted Number of Transacted Offices* Premium Offices* Premium Offices* Premium (USD Mn) (USD Mn) (USD Mn) IIOs 12 149 15 97 16 49 IIIOs 23 276 24 118 25 59 *Number of offices are as at the end of the particular period Table 24: Line of Business wise Direct Insurance Business (Life and General) Gross Written Premium (in USD Mn) Class of Business Apr-Jun 2024 Jul-Sep 2024 Oct-Dec 2024 Aviation 0.17 0.54 0.13 Fire 1.46 0.00 1.32 Health + PA 0.34 1.05 1.41 Life 0.46 0.82 0.90 Marine Cargo 0.00 0.00 0.01 Trade credit 0.00 0.00 0.19 Total 2.43 2.42 3.96 Note: The data for FY 2024-25 is unauditedTable 25: Line of Business wise Re-insurance Business Gross Written Premium (in USD Mn) Line of Business Apr-Jun 2024 Jul-Sep 2024 Oct-Dec 2024 Engineering 1.07 1.14 2.11 Fire 8.86 9.78 9.50 Health + PA 20.16 24.85 26.48 Health Insurance 0.01 0.00 0.00 Liability 0.26 0.29 0.37 Marine Cargo 1.10 0.51 1.18 Marine Hull 1.28 0.31 0.31 Motor 9.13 8.34 2.06 Other Misc. 0.15 0.43 0.87 Other Miscellaneous 2.52 2.34 1.88 Personal Accident 0.00 0.01 0.00 Total 44.54 48.00 44.76 Note: The data for FY 2024-25 is unaudited Table 26: Claims data (Retail / Re-insurance) Particulars Apr-Jun 2024 Jul-Sep 2024 Oct-Dec 2024 No. of Claim No. of Claim No. of Claim (Amount in USD Mn) Claims Amount Claims Amount Claims Amount Claims pending at the beginning 43 14.98 25 16.58 27 21.93 New Claims registered 30 12.32 43 14.98 25 15.20 Claims settled 38 6.82 21 28.15 21 27.50 Claims rejected 10 0.00 20 0.00 15 0.00 Claims outstanding 25 9.48 27 30.60 16 34.23 Note: 1) The data for FY 2024-25 is unaudited 2) No. of Claims and Claim amount includes for retail insurance business and re-insurance recoveries Fund Management Table 27: Number of Fund Management Entities (FMEs) and Funds Particulars As on Sep 30, 2024 As on Dec 31, 2024 FMEs 128* 139* Funds 168 198 *Excluding in-principle approvalsTable 28: Investments by Fund Management Schemes at GIFT IFSC as on Dec 31, 2024 In USD Mn Investments Complaints/ No. of Total Total Total Investments made in Legal Particulars Schemes Commit- Investments funds into India Foreign Disputes Registered ments made raised Jurisdiction outstanding raised (A) (B) (A+B)* Venture Capital Schemes 12 207.90 43.14 23.85 9.56 33.41 0 (including Angel Schemes) Category I and 70 9,959.75 4,186.12 3,184.42 611.55 3,795.97 0 II AIFs Category III 116 4,713.34 2,777.81 1,900.13 156.85 2,056.98 0 AIFs Total 198 14,880.99 7,007.07 5,108.40 777.96 5,886.36 0 *This reflects the investments made by the FMEs as on the end of the quarter, excluding exposure towards derivative contracts, cash equivalents, etc. In the case of schemes which are in the nature of fund of funds, cash maintained, and expenses incurred by the master fund are also excluded. The cumulative investments made as at the end of quarter stand at USD 6538.83 million. Table 29: Investors in IFSC Funds as on Dec 31, 2024 Type of Scheme No. of Investors* Venture Capital Schemes (including Angel Schemes) 434 Category I and II AIFs 962 Category III AIFs 1180 Total 2576 *Investors from more than 50 jurisdictions have contributed across schemes. Table 30: Trends of Fund Management Activity USD Mn QoQ Particulars Q4 FY Q1 FY Q2 FY Q3 FY Growth (%) 2023-24 2024-25 2024-25 2024-25 Cumulative commitments raised 8410.49 11693.91 12134.41 14880.99 22.63 Cumulative funds raised 3948.02 5319.11 5581.24 7007.07 25.55 Table 31: Portfolio Management Services (PMS) as on Dec 31, 2024 Type of Services Number of Investors AUM (in USD Mn) Discretionary & Non- Discretionary PMS 113 834.35 Advisory Services 31 430.74 Total 144 1265.09Finance Companies/ Finance Units Table 32: Finance Companies/ Finance Units during Oct-Dec 2024 Aircraft Ship FC (Non- Type of Finance Company FC (Core) Total Lease Lease Core) Provisional Registration Granted 1 5 1 0 7 Final CoR Granted 3 3 3 0 9 Registration till Dec 31, 2024 30 15 8 5 58 Table 33: Assets leased by AOL/ Ship Leasing Entities Type of asset As on Sep 30, 2024 As on Dec 31, 2024 By Aircraft Leasing entities Aircraft 44 63 Engines 47 53 Aircraft Auxiliary Power Units (APU) 68 80 Total 159 196 By Ship Leasing entities Ship 12 13 Table 34: Transactions financed by ITFS Platforms Particulars As on Sep 30, 2024 As on Dec 31, 2024 Number of Transactions 544 602 Value of Transactions (USD Mn) 25.68 30.56 Table 35: Business details of Global/Regional Corporate Treasury Centres (GRCTC) Particulars As on Sep 30, 2024 As on Dec 31, 2024 Loans & Advances (USD Mn) 132.04 1707.15 Total Investments (USD Mn) 78.31 78.31 Table 36: Business details of Core Finance Companies (e.g. Lending, Export financing) Particulars As on Sep 30, 2024 As on Dec 31, 2024 Loans & Advances (USD Mn) 1.09 2.95 Total Investments (USD Mn) 4.87 4.94 Metals and Commodities Table 37: Participants on India International Bullion Exchange (IIBX) Participants As on Sep 30, 2024 As on Dec 31, 2024 Qualified Jewellers 142 153 Clients 90 102 ‘Special category’ Clients 52 51 Qualified Suppliers 28 33 Clients 26 31 ‘Special category’ Clients 02 02 Valid India UAE CEPA TRQ Holders 357 418Table 38: Regulated Entities/ Intermediaries on IIBX Regulated Entities As on Sep 30, 2024 As on Dec 31, 2024 Bullion Trading Members 6 6 Bullion Trading Cum Self Clearing Members 3 3 Bullion Trading Cum Clearing Members 8 8 Bullion Professional Clearing Members 2 2 Vault Managers 3 3 Table 39: Product-wise summary of trades on IIBX During FY 2023-24 During FY 2024-25 During Oct – Dec 2024 Traded Traded Traded Traded Traded Traded Product Value Volume Value Volume Value Volume (USD Mn) (in kg) (USD Mn) (in kg) (USD Mn) (in kg) LBMA 1 kg Gold 995 4.52 75.00 0.00 0 0.00 0 LBMA 100 gm Gold 999 0.00 0.00 0.00 0 0.00 0 UAE GD 1 kg Gold 995 2.22 34.00 8.00 101 4.22 50 UAE GD 100 gm Gold 999 7.24 114.80 10.97 135.5 7.27 85.5 UAEGD TRQ 1 kg Gold 995 252.91 3957.00 2021.56 24818 1004.19 11,763.00 UAEGD TRQ 100 gm Gold 999 238.38 3747.40 2934.45 36019.4 1198.32 13,977.70 Total (Gold) 505.27 7928.20 4974.99 61073.5 2214.01 25,876.20 UAEGDCEPA SILVER GRAINS 698.48 908800.00 217.91 228060 0.00 0 UAEGD SILVER GRAINS 0.00 0.00 1.10 1100 0.99 980 SILVER GRAINS 0.00 0.00 0.00 0 0.00 0 UAEGD SILVER BAR 0.00 0.00 0.00 0 0.00 0 SILVER BAR 0.00 0.00 9.29 10020 0.61 630 Total (Silver)* 698.48 908800.00 228.31 239180 1.60 1,610.00 *The trading of silver started on IIBX from December 13, 2023 FinTech Table 40: FinTech Ecosystem in IFSC Sr. No. Particulars Till Dec 31, 2024 Number of Sandbox Entities 44 1 In Innovation Sandbox 30* In Regulatory Sandbox 14 2 Number of FinTech/ TechFin Entities Authorized 12 3 Number of Accelerators Authorized 2 4 Number of Entities exited from Sandbox 6 *Including acceleratorsAncillary Services Table 41: Activity-wise break up of ancillary services entities No. of Authorized Entities* S. No. Core Activity As on Sep 30, 2024 As on Dec 31, 2024 1 Legal, Compliance and Secretarial 10 10 Professional & Management Consulting 2 12 12 Services Auditing, Accounting, Bookkeeping and 3 22 23 Taxation Services Administration, Asset Management 4 Support Services and Trusteeship 20 23 Services Total 64 68 *Excluding in-principle approvals BATF Table 42: Activity-wise break up of BATF entities approved including in- principal approval 8 No. of Authorized Entities as on S. No. Core Activity Dec 31, 2024 1 Accounting Services 2 2 Bookkeeping Services 0 3 Taxation Services 1 4 Financial Crime Compliances 0 Total 3 8 Fresh application (other than transfer of existing Ancillary Services Entities)INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY 2nd & 3rd Floor, PRAGYA Tower, Block 15, Zone 1, Road 1C, GIFT SEZ, GIFT City, Gandhinagar, Gujarat – 382 355 www.ifsca.gov.in

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