GIFT City / IFSC (International Financial Services Centre)
What is GIFT City / IFSC (International Financial Services Centre)?
GIFT IFSC, located in Gujarat International Finance Tec-City (GIFT City) in Gandhinagar, is India’s first and only International Financial Services Centre, regulated by the International Financial Services Centres Authority (IFSCA). Funds set up in GIFT IFSC benefit from a favourable tax regime (including a ten-year tax holiday), exemptions from GST on financial services, and a regulatory framework designed to be competitive with global offshore jurisdictions such as Singapore and Dublin. It is increasingly used for setting up AIFs, global fund structures, and aircraft leasing.
Why It Matters
GIFT IFSC is emerging as India’s answer to Singapore and Dublin for fund domiciliation. Its tax-advantaged regime and streamlined regulations make it an increasingly attractive option for GPs looking to structure funds with both domestic and international investor bases.
Key Takeaways
- 1
India’s only IFSC, offering a ten-year tax holiday and GST exemptions on financial services.
- 2
Regulated by IFSCA with a framework designed to compete with Singapore and Dublin.
- 3
Increasingly used for AIFs, global fund structures, and cross-border financial services.
Related Terms
More India Terms
Explore related concepts from the same category to deepen your understanding.
SEBI (Securities and Exchange Board of India)
SEBI is India’s statutory regulatory authority for securities markets and investment funds, established under the SEBI Act, 1992. It regulates all Alternative Investment Funds (AIFs), mutual funds, portfolio managers, and market intermediaries operating in India.
Read MoreSEBI AIF Category I
Category I AIFs under the SEBI (Alternative Investment Funds) Regulations, 2012, include funds that invest in start-ups, early-stage ventures, social ventures, SMEs, and infrastructure. These funds are considered to have positive spillover effects on the economy and may receive incentives or concessions from SEBI, the Government of India, or other regulators. Sub-categories include Venture Capital Funds, Angel Funds, Social Venture Funds, and Infrastructure Funds.
Read MoreSEBI AIF Category II
Category II AIFs are funds that do not fall under Category I or III and do not undertake leverage or borrowing other than to meet day-to-day operational requirements (up to a regulatory cap). This is the most common AIF category in India and includes private equity funds, debt funds, and fund of funds that do not qualify as Category I.
Read MoreSEBI AIF Category III
Category III AIFs under SEBI regulations employ diverse or complex trading strategies and may use leverage including through investment in listed or unlisted derivatives. These include hedge funds, PIPE (Private Investment in Public Equity) funds, and other funds that trade with a view to making short-term returns. They are subject to higher regulatory reporting requirements compared to Category I and II.
Read MoreExplore Further
Explore the Full Glossary
Browse all 50 essential terms across India, Singapore, and global private markets.