Investor Presentaiton
Operational Benefits
fin
Exemption from
currency control
regulations to
IFSC Units
➤ Under SEZ Act, a unit set up in IFSC is treated as a non-resident. Even under Foreign Exchange
Management Act, 2002 ("FEMA") units in IFSC enjoy the benefits of a non-resident under
exchange control provisions.
Liberalized
currency control
regime for Indian
residents
➤ Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004
("ODI Regulations") restrict investment by an Indian resident into an overseas firm in the
financial services sector. To enable, Indian residents to set-up and invest funds in GIFT City,
RBI, vide its Circular dated May 12, 2021 has permitted sponsor contribution from a sponsor
Indian party in an Alternative Investment Fund (AIF) established overseas, including IFSC
Khandhar Mehta & Shah | Chartered Accountants
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