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International arbitration centre at Gift City: IFSCA in talks with Law Ministry

Gift City regulator IFSCA is close to setting up an international arbitration centre in Gift-IFSC, its Chairman Injeti Srinivas has said.

This international arbitration centre will be on the lines of Singapore international Arbitration Centre or London Commercial Arbitration centre.

“We will be able to do this by little tweaking of the Arbitration & Conciliation Act. IFSCA has already prepared a proposal and is in discussion with Union Law Ministry on this”, Srinivas said at a recent CII organised Financial Summit.

Gift-IFSC, which is currently the country’s sole international financial services centre, has an entirely separate financial jurisdiction with the International Financial Services Centre Authority ( IFSCA) as the unified regulator that has a holistic view of financial sector and enables its seamless integration. IFSCA has been empowered under 14 separate Central Acts

Srinivas said that IFSC should be looked at as a great opportunity for making India global and be treated as project of national importance.

IFSCA Chairman urged Corporate India to look at IFSC with more greater intent and integrate it with their plans to expand their global footprint.

Foreign bank branches

Today in less than a year, six foreign banks have opened their branches, Srinivas said. There are another eight in the pipeline, he added. “Gradually concentration of financial institution is also taking place in Gift City. Banks are the backbone of financial centre. Banks have much more liberty in terms of activities that can be undertaken in IFSC”, he added.

Fintechs

Srinivas said that IFSCA wants to leverage “our strength” with respect to cross border fintechs. “We are in the process of coming up with a fintech incentive scheme’, he added.

Company Law

Srinivas also said that IFSCA is looking at the company law tweaks to encourage SPACs (Special Purpose Acquisition Company) so as to enable them to look at Indian conpanies.

He highlighted that company law has been amended to allow unlisted companies to directly list abroad. ” The rules are yet to come for this. We are hopeful this would soon happen”, he said. It would then encourage Indian startups to first list at Gift City instead of going to Singapore or other overseas markets, he added.

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