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INDIAINX FAQ
Yes, as per SEBI (IFSC) Guidelines, 2015 any entity intends to carry out activities as an intermediaries in IFSC needs to form a company mandatorily
No, LLPs are not allowed as of now for carrying out operations as an Intermediary in IFSC
Yes, since IFSC is deemed to be a foreign territory and entities approved as IFSC unit are treated as non-resident in India. Therefore RBI ODI (Overseas Direct Investment) Rules are applicable. According to that, Indian parties are allowed under Automatic route to make investment in IFSC entities and that shall be treated as ODI. Further, Indian parties are also allowed to invest in Joint Ventures (JVs) abroad
Upto 400% of its net worth (As per the last audited balance sheet) subject to maximum financial commitment of USD 1 billion (Under Automatic Route) Any excess investment will require RBI approval
Individual person resident in India are allowed to invest upto USD 2, 50,000 per financial year under Liberalized Remittance Scheme (LRS) outside India or in IFSC and are allowed to set up wholly owned subsidiary/Joint Ventures abroad subject to terms and conditions stipulated by RBI.
  • Making investment abroad- To acquire shares or debt instruments of both listed and unlisted overseas company, Acquire ESOPs, Invest in units of Mutual funds, Venture Capital Funds, Unrated debt securities, promissory notes;
  • Set up WOS and JVs abroad subject to RBI terms and conditions
  • To purchase property abroad
  • Can open, maintain and hold Foreign Currency account with a bank in IFSC/outside India for making remittances without prior approval of RBI
Yes, separate service tax registration is required to be obtained by an IFSC unit, which is the basic requirement in order to avail exemption from Service tax on input services
The status of Directors of IFSC unit will continued to be the same as of their existing status for e.g, if an Indian resident opts for becoming a director of IFSC unit, in such case his/her status will remain as of Indian resident only. No additional benefits in terms of tax exemption to directors will be there. IFSC companies do not required to retire directors by rotation.
Yes
Yes, since SEZ is a restricted area and is under the supervision of Custom officers. Furthermore there are various incentives been made available to SEZ/IFSC Units therefore it is mandatory to transact all business from IFSC Unit premises only
Yes, it is mandatory to conduct all business transactions in foreign currency only as per RBI and SEBI norms for IFSC. However all administrative and other expenses can be incurred in Indian Currency
Yes, an IFSC unit need to open up two bank accounts as below:
  • Foreign Currency account for all business transaction with IBU (IFSC Banking Units) located in GIFT City SEZ
  • INR account with domestic branch of same bank or other bank for all administrative expenses.
No, capital market participants cannot operate as a Branch. As per the SEBI (IFSC) Guidelines, 2015, entities desirous to start capital market activities from IFSC should open a separate company.
GIFT City has two Zones: 1. Domestic and 2. Special Economic Zone (SEZ). All the domestic (Rupee denominated) transactions can be undertaken from GIFT domestic area.
GIFT City SEZ divided in to two area, one is domestic area and other one is international area. Currently in domestic area there are two towers operational. INDIA INX proposed Exchange and Clearing Corporation to be established in international area. GIFT SEZ Ltd currently provides incubation space in international area on lease. Hiranandani Builders constructing 16 floor building in the international area and the same will be completed by December 2016.
GIFT City SEZ Ltd provides office space for incubation purpose in international area on lease rental basis. Office space can be leased / purchased from Hiranandani Builders in the building which is under construction.
The members who setup their registered office in GIFT IFSC (international area) can operate in the GIFT IFSC Exchanges or International Exchanges with whom GIFT IFSC Exchange have tie up/arrangement. The members of GIFT IFSC exchange would not be allowed to operate in Indian Stock Exchanges.
BSE establish an India INX & India ICC in GIFT IFSC. India INX will guide members in setting up the unit in GIFT IFSC.
The India INX exchange in GIFT IFSC allows both manual and algorithmic trading.
The proposed exchange will offer equity derivatives, commodity derivatives, currency derivatives and fixed income segment.
The exchange will offer all segments in a single membership. There is no need to apply separate membership segment wise.
No. Brokers who intend to take membership of India INX Exchange/Clearing Corporation shall have registered office in GIFT IFSC (international area).
The members who setup their registered office in GIFT IFSC (international area) can operate in the GIFT IFSC Exchanges or International Exchanges with whom GIFT IFSC Exchange have tie up/arrangement. The members of GIFT IFSC exchange would not be allowed to operate in Indian Stock Exchanges.
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