Multinational corporations are increasingly choosing GIFT City IFSC as a strategic hub to centralise and modernise treasury operations.

Why GIFT City?

1. Centralised global & regional treasury operations

2. Multi-currency transactions under a single jurisdiction

3. Access to global banks & international capital markets

3. Clear regulations with IFSC tax incentives

4. Faster decision-making & stronger governance

Global + Regional Advantage

Operate a global treasury for worldwide control

2. Set up a regional treasury centre for Asia & Middle East oversight

3. Better visibility of cash flows & risk exposure

The latest regulatory reforms announced by the International Financial Services Centres Authority (IFSCA) mark a transformative milestone for GIFT City IFSC, reinforcing its credibility as a global financial hub. These strategic changes are designed to simplify compliance, broaden market participation, and improve operational flexibility for global financial players.

Key Highlights of the IFSCA Reforms:

Expanded eligibility norms for fund management personnel and leadership roles, supporting talent growth and operational efficiency.

Removal of unnecessary regulatory barriers like mandatory office space for professional services, enabling more agile business setups.

Introduction of modern frameworks for Global In-House Centres (GICs) to support tech, compliance, and analytics services within GIFT City.

Clearer capital market regulations, including umbrella licensing and revised capital requirements, make the ecosystem more investor-friendly and globally aligned.

Enhanced trust and clarity for custodians and intermediaries with transition windows and streamlined net worth norms.

Why It Matters:These reforms not only reduce operational friction but also strengthen GIFT City’s international competitiveness, making it an attractive destination for asset managers, insurers, fintech innovators, and multinational financial service providers seeking a regulated yet flexible global platform.

Conclusion:With IFSCA’s latest decisions, GIFT City is rapidly evolving into a serious global contender among international financial centres. The direction, clarity, and progressive regulatory mindset showcased through these reforms are poised to attract global capital and elevate India’s position in the world’s financial landscape.

Discover how GIFT City – India’s first International Financial Services Centre (IFSC) is fast becoming a global financial powerhouse and shaping the future of wealth and asset management in the country. This in-depth blog post by GIFT CFO explains why this smart financial hub matters for investors, advisors, startups, and global funds.

What you’ll learn from the article: • How GIFT City provides a world-class regulatory framework and tax incentives that drive investor confidence. • Why funds, wealth managers, and asset management firms are choosing GIFT City for cross-border operations and global investment products. • The benefits GIFT City offers to NRIs and international investors seeking efficient access to India’s financial markets. • How Indian financial services are evolving with new investment opportunities and diversified portfolios inside the IFSC.

From tax efficiency and global market access to stronger investor protection and modern financial services, this blog highlights how GIFT City is paving the way for India to compete with major financial centres globally.

GIFT City India—the Gujarat International Finance Tec-City—is revolutionizing India’s stature on the global financial stage. Established as the country’s first greenfield smart city and International Financial Services Centre (IFSC), GIFT City India is purpose-built to attract global investors, innovative businesses, and aspiring professionals alike. Launched in 2015, this visionary project embodies India’s ambition to leap into the ranks of premier international financial hubs.

1. Smart Infrastructure & Strategic Connectivity

Spread across approximately 886 acres, with plans to expand to over 3,300 acres, GIFT City India seamlessly blends infrastructure sophistication with environmental consciousness. Its “walk-to-work” urban design, advanced District Cooling System, automated waste management, and underground utility systems underscore the city’s smart city credentials.

Strategically located between Ahmedabad and Gandhinagar, GIFT City India benefits from proximity to Ahmedabad International Airport (about 20 km away), access to National Highway 48, and integration into the Ahmedabad Metro network.

2. Regulatory Autonomy & Business-Friendly Framework

At GIFT City India, businesses thrive under the unified regulatory oversight of the International Financial Services Centres Authority (IFSCA)—empowered to regulate banking, securities, insurance, and pension sectors. This integrated regulatory model simplifies compliance, enhances investor protection, and accelerates the ease of doing business in India.

3. Financial Services, Exchanges & Capital Markets

The International Financial Services Centre (IFSC) at GIFT City India hosts a diverse range of financial activities, including asset management, capital markets, banking, insurance, and fintech innovation.

GIFT City is also home to cutting-edge financial infrastructure:

India International Exchange (India INX) — India’s first international stock exchange with ultra-fast trading speeds and global access.

India International Bullion Exchange (IIBX) — India’s inaugural international bullion exchange, enabling transparent global bullion trading.

GIFT Nifty — A derivatives index under NSE IX traded in USD, bridging Indian markets with global investors.

4. Fund Ecosystem & Global Player Engagement

GIFT City’s fund management ecosystem is rapidly scaling: as of June 2025, it hosts 177 fund management firms, over 270 funds, and has seen AIF (Category-III) commitments triple to $10.15 billion—bringing total AUM to $23.5 billion, on course to exceed $100 billion by 2030.

The IFSC stands on the brink of surpassing 1,000 registered entities and $100 billion in banking assets, with diverse institutions including insurers, fintech firms, multi-nationals, and universities contributing to its dynamic growth.

Key global players like Abu Dhabi Investment Authority (ADIA) have established operations here, supporting capital inflows of $4–5 billion via GIFT City India, aided by attractive tax holidays and streamlined remittances.

5. Advantages for Investors & Enterprises

GIFT City India offers a compelling blend of benefits:

Tax Incentives: Enjoy exemptions on GST, securities and commodity transaction taxes, alongside up to a 10-year tax holiday.

Foreign Exchange Flexibility: Deemed as a foreign jurisdiction under FEMA, it permits seamless cross-border transactions, capital movement, and fund transfers.

Unified Regulatory Access: Simplified approvals via single-window systems and consolidated regulatory oversight.

Global Market Reach: Platforms like GIFT Nifty, India INX, and IIBX facilitate global trading and investment opportunities.

Modern Facilities: Smart utilities and stellar business infrastructure promote efficiency and sustainability.

6. A Hub for Innovation & Education

Beyond finance, GIFT City India nurtures innovation and talent:

It serves as a fintech and IT hub, attracting global tech players and startups.

It is also evolving into an educational nucleus, with international campuses (notably Australian universities) offering courses in finance, cybersecurity, analytics, and business.

7. Challenges & the Road Ahead

While GIFT City India showcases impressive momentum, certain limitations remain:

The city’s social and entertainment ecosystem is still nascent—partly due to Gujarat’s historically conservative policies.

Although physical growth and connectivity are improving, livability and global visibility must continue evolving to attract and retain talent.

Conclusion

GIFT City India is more than a city—it’s a strategic launchpad projecting India into global financial prominence. It combines smart infrastructure, regulatory agility, vibrant capital markets, fund-focused ecosystems, and a growing educational and technological presence.

The financial derivatives sector involves contracts that derive their value from the performance of underlying assets such as indices, currencies, or commodities. Within this sphere, index-based futures and options are key instruments used by market participants for structured exposure. Among the most recognized indices in the Indian context is Nifty, and within offshore listings, the emergence of Gift Nifty has brought procedural shifts aligned with domestic regulation and international coordination.

Gift Nifty's Transition from Offshore to Onshore Landscape

Gift Nifty operates as part of the International Financial Services Centre (IFSC) located at Gujarat International Finance Tec-City (GIFT City). This framework was developed to bring offshore-linked activity, previously associated with Singapore-based contracts, within India’s jurisdiction. The shift allows integration with domestic clearing systems and enhances visibility under national financial oversight.

The platform mirrors earlier structures associated with Nifty-linked instruments, providing continuity to participants while aligning under Indian authority. The operational schedule includes dual-time sessions that correspond to both Asian and Western financial hours, while remaining regulated under the Indian system.

Market Structure and Operational Framework

Gift Nifty is facilitated through the NSE International Exchange (NSE IX), offering futures and options based on key indices. The structure includes segmented sessions across the day to provide accessibility for global institutions. This format supports synchronized market access within a compliant, India-based framework.

Additionally, the environment in which these contracts function benefits from optimized tax structures and streamlined processing under IFSC-specific protocols. It reduces procedural overheads for international entities while remaining fully under Indian legal and regulatory structures.

Strategic Role within GIFT City Ecosystem

The development of Gift Nifty complements India’s vision of transforming GIFT City into a globally competitive financial services zone. With contracts now hosted within Indian territory, this evolution strengthens domestic oversight of previously external financial flows.

Gift Nifty plays a pivotal role in formalizing market activity within Indian oversight. It reinforces the objective of establishing GIFT City as a secure and structured zone for internationally oriented financial mechanisms without external dependencies.

Regulatory Framework and Clearing Mechanism

Gift Nifty operates under the supervision of the International Financial Services Centres Authority (IFSCA). Clearing services are provided by the NSE IFSC Clearing Corporation Limited, ensuring that all contract settlements meet Indian compliance protocols and risk control procedures.

The infrastructure is aligned with global practices and offers robust transparency. Its establishment supports India’s intention to elevate domestic institutions to participate in cross-border mechanisms without the need for offshoring critical financial contracts.

Sectoral Collaboration and International Participation

Gift Nifty functions as an Indian platform designed for offshore access within a compliant and regulated structure. It provides accessibility to benchmark indices such as Nifty 50, Nifty Bank, Nifty Financial Services, and Nifty IT.