Mumbai, 12th February 2025: Shri K. Rajaraman, Chairperson of the International Financial Services Centres Authority (IFSCA), participated in a discussion session at the IVCA Conclave 2025, participated in a discussion session on “Innovative Financing: Intersection of Large Capital Flows and Newer Fund Jurisdictions” at the IVCA Conclave 2025. Held at the Trident Hotel, Nariman Point, Mumbai, the session explored the evolving financial landscape, India’s positioning as a global investment hub, and the pivotal role of GIFT City in driving capital market innovations. Shri Rajaraman was joined by Sanjiv Aggarwal, CEO & MD of National Investment and Infrastructure Fund (NIIF), and Nishith Desai, Founder of Nishith Desai Associates.
Speaking on the evolution and current status of GIFT City, Shri Rajaraman highlighted its growth as a leading international financial hub. “The journey started in 2007, and by 2014, several enabling regulations were introduced to operationalize GIFT City. To ensure seamless coordination across regulators, the Parliament of India enacted the International Financial Services Centres Authority Act in 2019. Today, we function as a unified regulator, consolidating powers across 16 financial sector laws. Our principle-based regulations are globally aligned, ensuring simplicity and efficiency. The results over the past four years are a testament to the work done—we now have 31 regulations covering capital markets, banking, insurance, and niche financial sectors,” he stated.
Highlighting the rapid growth of GIFT City’s banking and fund management ecosystem, Shri Rajaraman noted, “We currently have around 30 international and domestic banks operating with international banking units, and the total asset size has crossed $78 billion. Indian corporations no longer need to go to foreign jurisdictions for bond issuances or credit lines. There are over 200 alternate investment funds registered by 130+ Fund Managers, which have invested USD 5 Bn into India and other countries. Additionally, GIFT City offers financial products unavailable in domestic markets, such as acquisition financing and aircraft and shipping asset financing. In the fund ecosystem, we now have over 200 registered funds managed by 140 fund managers.”
On regulatory oversight, Shri Rajaraman reaffirmed IFSCA’s commitment to investor protection and market integrity. “As a regulator, we are committed to ensuring the orderly development of markets, investor protection, and strong market integrity. Our anti-money laundering and anti-terrorism regulations are robust and aligned with the Prevention of Money Laundering Act (PMLA) of India, ensuring global compliance standards,” he added.
The session underscored how GIFT City is emerging as a preferred destination for international financial services, offering a competitive and well-regulated ecosystem for global investors and Indian enterprises.