A 16-member expert panel appointed by the International Financial Services Centres Authority (IFSCA) last week recommended a special carve-out for mutual funds wanting to invest in Gift City.
"The relaxation will allow non-residents to claim tax exemption in India on income from financial products offered by GIFT city intermediaries and is expected to give a boost to financial products and solutions offered from GIFT City," Rajesh Gandhi, Partner, Deloitte India said. "Among various intermediaries, the foreign clients of the brokers trading on various financial products on the IFSC stock exchanges are likely to be major beneficiaries of this exemption," Sunil Gidwani, Partner- Financial Services, Nangia Andersen LLP said.
A committee to suggest rules for direct equity listing at India s international financial centre (IFSC) in GIFT city has recommended depositories in the IFSC and the rest of the county be connected to enable this.
Restrictions on the Liberalized Remittance Scheme (LRS) have impacted fund flows into India s International Financial Services Centre (IFSC), Gift City.