- An International Financial Services Centre (IFSC) is a jurisdiction that provides world class financial services to non-residents and residents, to the extent permissible under the current regulations, in a currency other than the domestic currency (Indian Rupee) of the location where the IFSC is located.
- Services provided by an IFSC:
- Fund-raising services for individuals, corporations and governments
- Asset management and global portfolio diversification undertaken by pension funds, insurance companies and mutual funds
- Wealth management
- Merger and acquisition activities among trans-national corporations, etc.
- India’s 1st IFSC was set up at the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar in 2011.
- It is intended to provide Indian corporates with easier access to global financial markets, and to complement and promote the further development of financial markets in India.
Why in News?
- The Deakin University, which is a premier University in Australia, has become the 1st foreign university to receive approval of the International Financial Services Centres Authority (IFSCA) to set up an International Branch Campus (IBC) in GIFT-IFSC, GIFT City, Gujarat.