Expert Committee on developing GIFT IFSC as ‘Global Finance and Accounting Hub’ submits report to IFSCA

Posted 02 Apr 2024

2 min read

Committee was formed following a Ministry of Finance notification.
- The notification classified book-keeping, accounting, taxation, and financial crime compliance as ‘financial services’ under International Financial Services Centre (IFSC) Act, 2019.
Gujarat International Finance Tech- City (GIFT City)-IFSC was established as Special Economic Zone (SEZ) in 2015, in Gujarat.
- An IFSC caters to customers outside the jurisdiction of the domestic economy. Such centres deal with flows of finance, financial products and services across borders.

Opportunities for GIFT IFSC to become Global Finance and Accounting Hub
- Strong technology-driven outsourcing capabilities.
- Large talent pool of skilled manpower in the fields of accounting, etc.
- “Accounting and finance services” recognised as one of the 12 Champion sectors in services for exports.

Recommendations
- Proposes a new regulation, providing for comprehensive and inclusive definition for Bookkeeping, Accounting, Taxation, and Financial Crime Compliance Services.
  - Only firms that are registered as a company or a Limited liability partnership should be allowed to offer these services.
- Long-term strategies for education and skill acquisition through developing specialized degree or diploma programs, etc.

IFSC Authority is a statutory body established under IFSC Act,2019.
A unified regulator for development and regulation of financial products, financial services and financial institutions in IFSCs in India.

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