IFSCA Circular dated April 27, 2022 on “Framework for FinTech Entity in the IFSCs” empowers IFSCA to grant Authorization or Limited Use Authorization to all eligible domestic and foreign FinTech/Techfin entities, as a “Fintech Entity” under the said framework.

Are you a FinTech Entity?

‘FinTechs’ are categorized as those entities providing financial technology solutions that result in new business models, applications, process or products in financial services regulated by IFSCA.

The following are eligible FinTech Applicants:

In case Applicant is from India:

An entity registered with DPIIT as start-up related to FinTech; or
Branch of an Indian Company or LLP in IFSC; or
An entity working directly or indirectly in the ecosystem regulated by RBI / SEBI/ IRDAI/ PFRDA

In case Applicant is from outside India:

An entity from jurisdictions except those jurisdictions which are identified in the public statement of FATF as “High-Risk Jurisdictions subject to a Call for Action” (i.e. black list)

Permissible Areas/Activities of IFSCA under FinTech

Click Here to understand the illustrative list of permissible Areas/Activities of IFSCA under “FinTech”.

Steps to proceed for FinTech Application:

If your solution forms part of any of the above mentioned illustrative list of areas/ activities under FinTech, you may want to proceed with application under,

Grants:

A FinTech that has been granted Authorization/ LUA as a FinTech Entity shall be eligible to apply for grants in accordance with International Financial Services Centres Authority (FinTech Incentive) Scheme, 2022.

Please click here for more details.

If not a FinTech, then?

If your solution does not form part of above-mentioned illustrative list of areas/ activities, click here to check if you are a TechFin to proceed with!!

Mentorship

If you are looking out for mentorship to scale fast, click here to connect with our Mentors.

If you still have any further doubts and wish to connect with us, please drop in an e-mail (on fe-sandbox@ifsca.gov.in) with a pitch deck of your proposed solution and we shall get in touch with you at the earliest.

Are you a TechFin Entity?

‘TechFins’ are those entities that provide an advanced/ innovative technology solution(s) which aid and assists activities in relation to financial products, financial services, and financial institutions.

The following are eligible TechFin Applicants:

In case Applicant is from India:

An entity registered with DPIIT as start-up related to FinTech; or
A company or LLP incorporated in India; or
Branch of Company/ LLP in IFSC; or
An entity working directly or indirectly in the ecosystem regulated by RBI / SEBI/ IRDAI/ PFRDA

In case Applicant is from Outside India:

An entity from jurisdictions except those jurisdictions which are identified in the public statement of FATF as “High-Risk Jurisdictions subject to a Call for Action” (i.e. black list)

Permissible Areas/Activities of IFSCA under TechFin

Does your solution form part of the Permissible Areas/ Activities of IFSCA under ‘Techfin’? Click Here for the illustrative list of Techfins.

Steps to proceed for TechFin Application:

If your solution forms part of any of the above mentioned illustrative list of areas/ activities under FinTech, you may want to proceed with application under:

Grants:

A 'TechFin' that has been granted Authorization/ LUA as a FinTech Entity shall be eligible to apply for grants in accordance with International Financial Services Centres Authority (FinTech Incentive) Scheme, 2022 .

Please click here for more details.

Mentorship

If you are looking out for mentorship to scale fast, click here to connect with our Mentors.

If not a TechFin, then?

If your solution does not form part of above-mentioned illustrative list of areas/ activities, Click Here to check if you are a FinTech to proceed with!

Class/categories of FinTech and TechFin entities having:

A deployable solution/working product and,
A revenue earning track record in at least one of the last three financial years

can apply to IFSCA to obtain Authorization, without entering into the Sandbox.

An entity seeking Authorization under the Framework for FinTech Entity in the IFSCs (“FE Framework”), shall be eligible to apply to IFSCA (under permissible areas / activities FE Framework of IFSCA as FinTechs or Techfins), for Authorization, for a maximum of 12 months, which may be extended further by 6 months if requested by the entity

Why an Authorization?

Please click here to learn more about the tax incentives/ benefits of Authorization

Permissible Areas/Activities of IFSCA under ‘FinTech’ and ‘Techfin to apply under Authorization:

Does your solution form part of the Permissible Areas/ Activities of IFSCA under ‘Fintech’ or ‘Techfin’ solution being applied for ‘Authorization” .Click here for an illustrative list of the same.

If yes for the above, check your eligibility to apply further for Authorization:

Are you an Applicant from India:
- An entity registered with DPIIT as start-up related to FinTech; or
- A company or LLP incorporated in India; or
- Branch of an Indian Company or LLP in IFSC; or
- An entity working directly or indirectly in the ecosystem regulated by RBI / SEBI/ IRDAI/ PFRDA
Are you an Applicant Outside India – An entity from jurisdictions except those which are identified in the public statement of FATF as “High-Risk Jurisdictions subject to a Call for Action” (i.e. black list)
Does your solution fulfill the below mandatory requirements to apply for Authorization:
- use technology in the core product or service, business model, distribution model or methodology; or
- have presence of deployable solution/working product; and
- have revenue earning track record in at least 1 of the last 3 financial years
- Security Assessment Report if available (Security Audit Certificate/ VAPT Certificate) from Cert-In empanelled Auditor if Applicant is Indian Entity or an equivalent nodal Agency, if Applicant is from Outside India

If you meet the eligibility criterias as above, Congratulations you may apply to IFSCA for Authorization of your FinTech/ Techfin Solution!!!!

Application form and fees

Please click here to down the application form for Authorization. The application form complete in all aspects shall be submitted at fe-sandbox@ifsca.gov.in through electronic mail.

Following Fee structure shall be applicable all FinTech Applicants

for Authorization :

Application Fee : USD 500
Authorization Fee (once approved): USD 1500

For manner of payment for the above fees, please click here to refer to the circular of IFSCA “Fee Structure for the entities undertaking or intending to undertake permissible activities in IFSC” dated May 17, 2023, as amended

Post Authorization:

Once Authorized by IFSCA as a “FinTech Entity”, the applicant shall:

establish an office in GIFT IFSC and commence its operations within 120 days from Authorization and operate from IFSCs in either of the following forms:
1. Newly established/ incorporated body corporate in the IFSC; or
2. a subsidiary of an Indian or foreign body corporate in IFSC; or
3. establish a branch of Indian or foreign body corporate in IFSCs
shall comply with clauses 15 to 23 of the FE Framework and other terms and conditions as may be prescribed by IFSCA from time to time.

(For ease of establishing an office in GIFT IFSC, please click here to know further)

A Limited Use Authorization ‘Sandbox’ is a testing environment under which entities operating in the capital market, banking, insurance, and other financial services space are provided certain facilities and exemptions/relaxations to experiment with innovative FinTech/Techfin solutions for a limited time frame either in live market, (Regulatory Sandbox ) or in isolation from live market ( Innovation Sandbox) and in accordance with certain boundary conditions as may be determined by IFSCA.

Below are the various types of Sandbox of IFSCA:

FinTech Regulatory Sandbox This Sandbox allows applicants to test their FinTech Ideas or solutions in a live environment with real customers / investors with a Limited Use Authorization.
IFSCA FinTech Innovation Sandbox This Sandbox allows applicants to develop and test their FinTech Ideas or solutions in isolation from the live market with a Limited Use Authorization
Inter-operable Regulatory Sandbox (IoRS) with IFSCA as Principal Regulator Foreign FinTechs seeking entry into India shall be considered for IoRS with IFSCA as the Principal Regulator. IoRS = FinTech Sandboxes of RBI, SEBI, IRDAI, PFRDA and IFSCA. Please click here for more details.
Overseas Referral Regulatory Mechanism / FinTech Bridges of IFSCA An applicant seeking to access the overseas regulatory referral mechanism shall be governed as per the provisions of the MoU or collaboration or special arrangement between IFSCA and the corresponding overseas financial sector regulator(s). Please click here for more details.

An entity seeking Limited Use Authorization under the Framework for FinTech Entity in the IFSCs (“FE Framework”), shall be eligible to apply to IFSCA (under permissible areas / activities of IFSCA as FinTechs or Techfins), for their entry into IFSCA’s Regulatory or Innovation Sandbox , a maximum of 12 months which may be extended further by 6 months if requested by the entity.

There is no requirement for an Entity to set up an office at GIFT IFSC during the Sandbox period unless a bank account is required to be opened in IFSC, if directed by IFSCA in its approval.

During its test conditions, if the entity (on the basis of said Limited Use Authorization of the IFSCA), is accepting any remuneration/funds from any of its customers, stakeholder or any other entity, it shall have bank account in any of the IFSC Banking Units (IBUs) and the same, is subject to a careful perusal of use-case(s) proposed by the Entity and appropriate guidance or approvals as relevant from the Competent Authority may be sought

Permissible Areas/Activities of IFSCA under ‘FinTech’ and ‘Techfin to apply under Sandbox:

Does your solution form part of the Permissible Areas/ Activities of IFSCA under ‘Fintech’ or ‘Techfin’ solution?. Click Here for an illustrative list of the same.

If yes for the above, check your eligibility to apply further for Authorization:

Are you an Indian applicant:
- An entity registered with DPIIT as start-up related to FinTech; or
- A company or LLP incorporated in India; or
- Branch of Indian Company or LLP in IFSC; or
- An entity working directly or indirectly in the ecosystem regulated by RBI / SEBI/ IRDAI/ PFRDA

Are you a Foreign applicant – from any jurisdictions except those jurisdictions which are identified in the public statement of FATF as “High-Risk Jurisdictions subject to a Call for Action” (i.e. black list).
Does your solution fulfill the mandatory requirements to apply for Limited Use Authorization (Sandbox):
- The idea or solution should be innovative enough to add significant value to the existing offering related to financial service or financial product regulated by IFSCA.
- Genuine need for live testing of the solution on real customers/investors
- Use of technology in the core product or service, business model, distribution model or methodology to provide financial services that are or likely to be regulated by the IFSCA
- Limited prior testing: Before applying for testing in sandbox, limited offline testing of the idea or solution should have been carried out by the applicant.
- The idea or solution should offer identifiable benefits (direct or indirect) to the customers/investors or entities or to the Banking, Capital Market, Funds Management, Insurance sector etc at large.
- No risks to the financial system and the idea or solution should have proper risk management strategy to incorporate appropriate safeguards to mitigate and control potential risks so as to ensure that there are no risks to the financial system.
- Testing readiness of the solution: and the Applicant must demonstrate well developed testing plans/scenarios and expected outcomes with clear objectives, parameters and success criteria.
- Intention of Deployment post-testing The Applicant should demonstrate the intention and ability to deploy the idea or solution on a broader scale. To this effect the applicant should share a proposed sandbox exit and transition strategy

If you meet the eligibility above, Congratulations you may apply to IFSCA for Limited Use Authorization under the Regulatory Sandbox or Innovation Sandbox!!!!

Application form and fees

Please click here to down the application form for Limited Use Authorization (Regulatory and Innovation Sandbox). The application form complete in all aspects shall be submitted at fe-sandbox@ifsca.gov.in through electronic mail.

Following Fee structure shall be applicable only for Foreign FinTech Applicants:

Application Fee : USD 100
Limited Use Authorization Fee (once approved): USD 500

For manner of payment for the above fees, please click here to refer to the circular of IFSCA “Fee Structure for the entities undertaking or intending to undertake permissible activities in IFSC” dated May 17, 2023

Please click here to refer to the IFSCA Circular dated April 27, 2022 on “Framework for FinTech Entity in the IFSCs” to obtain authorisation as FinTech Entity (FE).

The FE shall comply with clauses 15 to 23 of the FE Framework and other terms and conditions as may be prescribed by IFSCA from time to time.

Post successful exit from Sandbox, the Applicant may apply under Authorisation. Click here to know further.

Once the Applicant is granted Limited Use Authorization as a “FinTech Entity”, by IFSCA, it shall comply with clauses 15 to 23 of the FE Framework and other terms and conditions as may be prescribed by IFSCA from time to time.

Post successful exit from Sandbox, the entity may apply under Authorisation.

Grants:

Do you know that once approved by IFSCA as a FinTech Entity under Regulatory Sandbox or Innovation Sandbox, you are further eligible to apply for grants!!!! Please click here for more details.

Please click here for more details If you still have any further doubts and wish to connect with us, please drop in an e-mail (on fe-sandbox@ifsca.gov.in) with a pitch deck of your proposed solution and we shall get in touch with you at the earliest.

Accelerator and Permissible Areas/Activities for Cohorts:

An accelerator is an entity whose focus/core area is to provide support to start-ups/growth-driven entities and conduct cohorts to enable them to scale fast. The support can be in the form of resources (people and money), mentors, connections, knowledge, etc.

Click here for an illustrative list of permissible areas/activities (FinTech or Techfin) for cohorts and more details on the framework.

Eligibility to apply as an Accelerator for LUA/ Authorization:

Are you an Indian Accelerator?

An entity registered with DPIIT as start-up related to FinTech; or
A company or LLP incorporated in India; or
Branch of an Indian Company or LLP in IFSC; or
An entity working directly or indirectly in the ecosystem regulated by RBI / SEBI/ IRDAI/ PFRDA

OR
Are you a Foreign Accelerator?
An entity from any jurisdictions except those jurisdictions which are identified in the public statement of FATF as “High-Risk Jurisdictions subject to a Call for Action” (i.e. black list).
Does your entity fulfill a minimum of two (02) of the below-mentioned eligibility Criterion:
- have operated at least one cohort (physical, virtual and/or hybrid) and the focus area(s) of that cohort should be as per Annexure – I of FE Framework
- have experience in raising funds and/ or bringing Investors for its supported entities and a minimum of cumulative INR Five Crores (50,000,000/-) should have been raised by it for its supported entities;
- have signed Memorandum of Understanding(s) (MOUs) with international Industry or Academic Partners, and similar kind of institutions;
- is a recognized Technology Business Incubator (TBI) by Department of Science & Technology (DST), Govt of India or have received grants from DST, Ministry of Electronics & Information Technology (MeitY) or Biotechnology Industry Research Assistance Council (BIRAC), National Institution for Transforming India (NITI Aayog) or similar institutions in other jurisdictions;
- incubated a minimum of 100 start-ups in any jurisdiction;
- have incubated a minimum of 10 FinTech start-ups in any jurisdiction;
- have been assisted by Central/State Government(s) or any department/agency of Central/State govt in India or any jurisdictions except those which are identified in the public statement of FATF as “High-Risk Jurisdictions subject to a Call for Action” (i.e. black list).
Additional Mandatory requirement for Accelerator seeking Authorization as FinTech Entity is that it shall have a revenue earning track record in at least one of the last three financial years.

If you meet the eligibility above, Congratulations you may apply to IFSCA for Limited Use Authorization or Authorization as applicable !!!!

Requirements subsequent to receiving Authorization/LUA :

Cohort specifications

The Accelerator shall operate at least one cohort (physical/ virtual and/or hybrid) per year and the focus area(s) for a cohort(s) shall be as per Annexure – I of FE Framework.
Minimum Size of each Cohort shall comprise 10 FinTechs/ Techfins.
Minimum duration of each Cohort shall be 1 Month.
Maximum duration of each Cohort shall be 12 months
The Accelerator shall ensure that FinTechs and/ or TechFins under its cohort(s) are
1. from any jurisdictions except those which are identified in the public statement of FATF as “High-Risk Jurisdictions subject to a Call for Action” (i.e. black list).
2. (b) comply with and develop proper procedures and systems for onboarding of their customers including KYC/AML/FATF checks/ monitoring etc. and also comply with the relevant Guidelines of IFSCA and any other relevant laws and regulations as may be applicable from time to time.

Others

The Accelerator shall share with IFSCA the details of planned cohorts within 3 months from the date of issuance of Authorization/ Limited Use Authorization letter by the Authority or at such regular intervals as mutually agreed with the Authority.
The Accelerator may advice FinTech and/or TechFins in its cohort(s) regarding (including but not limited to) adequate security systems to protect against cyber threats, data leakage, payment security relevant certifications, VAPT reports and the results (from Cert-In empanelled Auditor or an equivalent nodal Agency),
Bank Account
An Accelerator that has been granted Authorization may accept remuneration/ funds from any of its cohort(s) participants, stakeholder, or any other entity, which shall be in a freely convertible foreign currency and shall have a bank account in any of the IFSCs Banking Units (IBUs) for collecting the same.

In addition to above, specific requirements for Accelerators which have been granted “Authorization” under FE Framework

Operate from IFSCs in either of the following forms:

Newly established/ incorporated body corporate in the IFSCs; or
A subsidiary of an Indian or foreign body corporate in IFSCs; or
Establish a branch of Indian or foreign body corporate in IFSCs
Shall have a bank account in any of the IFSCs Banking Units to accept remuneration/ funds in a Specified foreign currencies from any of its cohort(s) participants, stakeholder, or any other entity.

Grants:

An Accelerator that has been granted Authorization/ LUA as a FinTech Entity shall be eligible to apply for an Accelerator grant as mentioned below in accordance with International Financial Services Centres Authority (FinTech Incentive) Scheme, 2022 :

One grant, for an accelerator not based in IFSC.
Three grants, for accelerator based in IFSC.

Please click here for more details.

Mentorship

If you are looking out for mentorship to scale fast, click here to connect with our Mentors.

Introduction:

IFSCA notified IFSCA (FinTech Incentive) Scheme, 2022(“the scheme”), with an objective to promote the establishment of a world class FinTech Hub, at GIFT International Financial Services Centre (IFSC) India by providing financial support to FinTech activities in the form of specific grant(s) as specified in the scheme, based on their eligibility and fulfillment of terms and conditions, as may be specified under the scheme.

Eligibility for application to Grants:

The Grants contemplated under the Scheme shall be available to the eligible FinTech Entity (FE):

Which is part of the IFSCA’s Regulatory or Innovation Sandbox ; or (if you are not a part of it, please click here to apply to the IFSCA’s Regulatory or Innovation Sandbox);or
Which is referred to the IFSCA under a FinTech bridge arrangement with a Counterpart Regulator ; or
Which has either participated or is participating in any Accelerator or Cohort or Special Programme supported or recognized by IFSCA; or
Which is referred to IFSCA by an entity(ies) having Memorandum of Understanding (MoU) or collaboration or special arrangement with it

The types of incentives under the scheme for eligible applicants are:

FinTech Start-up grant- This grant is provided to a FinTech start-up with a novel FinTech idea or solution with the focus on converting that idea into a Minimum Viable Product (MVP) * MVP’ means a version of a product with minimum features for providing feedback for future product development by the early users.
Proof of Concept (PoC) grant - This grant shall be utilized for the purpose of conducting a PoC in GIFT IFSC or globally by an early or mature FinTech Entity (FE) in domestic market or overseas. *PoC means demonstration of a concept, principle or idea about its feasibility and potential.
Sandbox grant - This grant is provided for FE selected under IFSCA Sandbox (Limited-Use Authorization) to experiment with innovative products or services in sandbox.
Green FinTech Grant - This grant is provided to a FE for developing solutions facilitating sustainable finance and sustainability linked finance, including ‘Environmental, Social and Governance (ESG)’ investments
Accelerator Grant - This grant is provided to FEfor supporting accelerators at the IFSC for capacity building, build capabilities around mentors, bringing investors, bringing more projects or PoC, tie ups, etc.
Listing Support Grant - The grant is provided to an aspiring Domestic FE authorised by IFSCA, to go for listing on stock exchanges recognised by the IFSCA.

FinTech Start-up Grant

For Early stage FinTech

Rs.15 L

FinTech Start-up grant

This grant shall be utilized for developing a product or a service and related ‘go-to market’ initiatives for a start-up with a novel FinTech idea or solution with a focus on converting the idea into an MVP.

Proof of Concept (PoC) grant

Early or Mature FinTech For conducting a PoC

Rs.50 L

Proof of Concept (PoC) grant

This grant shall be utilized for the purpose of conducting a PoC by an early or mature FinTech Entity (FE) in domestic market or overseas.

Sandbox grant

FinTech selected for IFSCA Sandbox

Rs.30 L

Sandbox grant

This grant shall be utilized by FEs to experiment with innovative products or services in a sandbox.

Green FinTech Grant

FinTech focussed on Sustainable Finance

Rs.75 L

Green FinTech Grant

This grant shall be utilized towards developing solutions facilitating sustainable finance and sustainability linked finance, including ‘Environmental, Social and Governance (ESG)’ investments.

Accelerator Grant

FinTech focussed on Sustainable Finance

Rs.10 L

Accelerator Grant

his grant shall be utilized for supporting accelerators at the IFSC for capacity building, build capabilities around mentors, bringing investors, bringing more projects or PoC, tie ups, etc.

Listing Support Grant

To support domestic FinTechs aspiring to go global

Rs.15 L

Listing Support Grant

The grant shall be utilized for supporting Domestic FE aspiring to go for listing on stock exchanges recognised by the Authority.

Additional conditions for Grants

The incentive granted to an FE under the PoC Grant, Start-up Grant or Sandbox Grant shall be a one-time assistance given to it.
In case of Accelerator Grant, following conditions shall be complied with by the Applicant:
- The minimum size of the cohort or accelerator shall be 10 (number of FinTechs).
- The minimum tenure of the program shall be of 4 weeks.
- The accelerator applicant are eligible for the following number of grant(s) in a year, per focus area –
  1. One grant, for accelerator not based in IFSC.
  2. Three grants, for accelerator based in IFSC.
Preference shall be given to the FE having a tie-up or support with a Financial Institution.
Intellectual Property, if any, generated during the Sandbox tenor shall be owned by the FE.
In case of violation of any terms and condition of the grant by the FE, IFSCA shall have right to register encumbrance over Intellectual Property generated by FE during the sandbox period. Provided that no such encumbrance shall be registered in case of Listing Support Grant.
Time Overruns – FEs shall adhere to the timelines proposed and approved while sanctioning the grant. However, if there are genuine time overruns, IFSCA may grant extension of timeline on the basis of recommendation made by the Internal committee.
The IFSCA may, at its discretion, disclose the details of the solution, product, etc.

Application form and fees

Please click below to download the application form for grants:

The application form complete in all aspects shall be submitted at fe-incentive@ifsca.gov.in alongwith non-refundable application processing fee of USD 100. For manner of payment for the above fees, please click here to refer to the circular of IFSCA “Fee Structure for the entities undertaking or intending to undertake permissible activities in IFSC” dated May 17, 2023,as amended.

Click here

to refer to Guidelines of the scheme

The sanctioned grant is further to be availed on a reimbursement basis.Please click here to know more about FAQs on milestones & Illustrative Permissible Expenses for Reimbursement.

Prof. Joshy Jacob

Committee Chair
IIM Ahmedabad
Read More

Rich Experience in Finance & Accounting and Grant disbursement
Research areas are pricing of financial assets, corporate finance etc
Member of Finance Management Association

Shri Mihir Joshi

Member
President, Gujarat Venture Finance Limited
Read More

Rich Experience in all stages of Venture Capital (VC) life cycle.
Represented GVFL on board of several investee companies like e-infochips, 20 Microns etc.
He was a member of the Screening Committee of Technology Entrepreneurship Program (TePP) and panel for setting up of Biotech Incubation Centre by Department of BioTechnology, DBT

Shri T Y Bhatt, IAS

Member
Director (ICT & e-Governance), Government of Gujarat
Read More

20110 batch IAS officer with a degree in Mechanical Engineering and Masters in Business Administration.
Previously he served as Additional Commissioner in State Tax Department, Managing Director at MGVCL, Secretary at Gujarat Public Service Commission & currently he is serving as Managing Director in Gujarat Informatics Limited since April 06, 2023, which comes under the Department of Science & Technology

Shri Sandip Shah

Member
General Manager, GIFT CITY
Read More

Playing instrumental role in developing India’s maiden International Financial Services Centre (IFSC)
Worked with HSBC InvestDirect (India) Limited as Equity Advisor and NSDL as Assistant Manager

Shri J. Pazhamalai

Member
Cyber Security Advisor & Mentor
Read More

Cyber Security Advisor/Mentor
Was Chief Information Security Officer [CISO] & Head of IRMC
Was Sr. Vice President and Head of Systems Audit Vertical of Reserve Bank Information Technology Pvt Ltd (ReBIT)
Was Head of Information Security & Technology Assurance
Was Officer, NIC, Planning Commission, Government of India

Dr. Efi Pylarinou

Member
FinTech and Blockchain Advisor
Read More

Founder of Efi Pylarinou Advisory which deals in B2B services in Finance, Fintech, and Blockchain
Former Wall Street Professional and served as Vice president in Salomon Brothers, Bankers Trust and Cowen
Top skills areas are Fixed Income, Products Derivatives and Structured Products etc.

Dr. Ira Sobel

Member
CEO & Founder, Fintech for Longevity
Read More

Was member of working group at the World Economic Forum on “Redefining Retirement” (2002)
Member of the executive committee of the Fintech Community of Israel
Top skills areas are Fixed Income, Products Derivatives and Structured Products etc.
Areas of expertise are business strategies, innovation management, strategic partnerships etc.

Ms. Susanne Chishti

Member
CEO, FINTECH Circle
Read More

Member of FTSE Board
Non Executive Director & Member of the Audit, Remuneration, Nomination and Risk Committees at CMC Markets
Non Executive Director at Crown Agents Bank
Company Chair, Non Executive Director & Board Advisor at Lenderwize

Ms. Dea Markova

Member
Senior Director, FTI Consulting EU
Read More

Senior DirectorSenior Director at FTI Consulting EU
Was associated with Monetary Authority of Singapore (MAS) as Senior Programme Manager for FinTech Development
Head of Programmes of Innovate Finance, the UK's FinTech membership association

Shri Joseph Joshy C

Member- Secretary
Chief Technology Officer, IFSCA
Read More

Driving FinTech, Supervisory Technology (SupTech) and other strategic initiatives
Co-founder of Reserve Bank Information Technology (ReBIT), the IT Subsidiary of Reserve Bank of India
Member of more than 20+ Technical Advisory Groups/Committees at Reserve Bank of India

An Illustrative list of permissible areas/activities under ‘FinTech’ is as below:

S.l No	I. Banking Sector	II. Capital Markets and Funds Management	III. Insurance sector
1	Remittance and payments	Crowd funding	InsurTech
2	Digital lending	Personal finance	Innovative technologies for insurance life cycle (underwriting, claims management of life/health products etc.)
3	Buy Now Pay Later	Wealth Tech	Digital innovation for global health insurance cover
4	Crowd Lending	Robo Advisory	Innovation in commercial insurance
5	Digital Bank (Neo Banking/Challenger bank)	Sustainable Finance products	Digital platform for settlement of balances between insurance companies
6	Open banking	Alternate trading platforms	Open insurance
7	-	-	Embedded insurance

An Illustrative list of permissible areas/activities under TechFin is as below:

1	Agri Tech
2	Accelerators
3	Climate/Green/Sustainable Tech
4	Defence Tech
5	Regulatory Tech
6	Space Tech
7	Technology solution supporting Digital banking (example Core Banking etc.)
8	Technology solution aiding Trade Finance
9	Solutions/services for BFSI domain leveraging:
	(i) Artificial Intelligence/Machine Learning
	(ii) Big Data
	(iii) Biometrics
	(iv) Chatbots
	(v)Cyber security
	(vi)Digital Identity/KYC/AML/CFT
	(vii) Distributed Ledger Technology
	(viii) Fraud detection/prevention
	(ix) Internet of Things (IoT)
	(x) Longevity Finance<< /td>
	(xi) Metaverse including Augmented Reality and /or Virtual Reality
	(xii) Quantum Tech
	(xiii) Web 3.0

Click below to understand the permissible list of focus Areas/Activities of IFSCA (for Direct Authorization and Limited Use Authorization) under:

IFSCA alongwith Monetary Authority of Singapore (MAS) have entered into a FinTech Cooperation Agreement (CA) to facilitate regulatory collaboration and partnership in FinTech.

The CA will promote the following:

Regulatory Sandbox Collaboration – MAS and IFSCA will leverage existing regulatory sandboxes in their respective jurisdictions to support experimentation of technology innovations..
Sharing of Information – MAS and IFSCA will share non-supervisory related information and developments on innovation in financial products and services, facilitate discussions on emerging FinTech issues and participate in joint innovation projects

CA will aid:

As Landing-Pad for FinTechs from Singapore to India
For Regulatory Hand-Holding by both the regulators
For Joint Sandbox Testing for Cross-border Uses Cases between India and Singapore

Click here for more details.

What is an Interoperable Regulatory Sandbox (“IoRS”) ?

IoRS is a mechanism to facilitate testing of innovative hybrid financial products / services falling within the regulatory ambit of more than one financial sector regulator viz.RBI, SEBI, IRDAI, IFSCA and PFRDA

Brief Background

IoRS has been prepared by the Inter-Regulatory Technical Group (IRTG) on FinTech . The said Group was constituted under the aegis of the Sub‐Committee of the Financial Stability and Development Council (FSDC‐SC) for inter‐regulatory co‐ordination among the financial sector regulators on FinTech related issues. The group, in addition to the members from financial sector regulators, had representation from the DEA, Ministry of Finance and the Ministry of Electronics and Information Technology.

Why is it needed?

To obviate the need of innovators to engage with different regulators, regarding their hybrid product, common window has been made available for testing of innovative products/services under the IoRS, for those innovators whose business models/activities/features fall within the remit of more than one financial sector regulator.

Product / Services to be admitted in IoRS:

Financial products / service providers whose business models / activities / features fall within the remit of more than one financial sector regulator, shall be considered for the testing under IoRS.

Principal Regulator, Associate Regulator and Role of IFSCA:

The Application for IoRS shall be governed by Prinicpal Regulator (“PR”) and Associate Regulator (“AR).

The regulatory sandbox (RS) framework of the regulator, under whose remit the ‘dominant feature’ of the product falls, governs it as PR and the regulator/s under whose remit the other features apart from the dominant feature of the product fall will be the AR.

Two sets of factors would be considered or deciding the dominant feature:

Firstly, the type of enhancement to the existing products like loans, deposits, capital market instruments, insurance, G-sec instruments, pension products, etc., and
Secondly, the number of relaxations sought by the entity for undertaking the test under the IoRS.

Based on the dominant features of the product, the eligibility criteria and networth criteria as applicable for the RS of the concerned regulator (PR) shall be applicable to the applicant entity for participation in the IoRS

Role of IFSCA:

Where the applications from Indian FinTechs having global ambition and foreign FinTechs seeking entry to India, the IoRS application shall be referred to IFSCA, for taking forward the proposals, as IFSCA will be the Prinicpal Regulator for all such applications.

Whom to Apply for IoRS?

FinTech Department of RBI shall act as nodal point for receiving applications under IoRS and hence all application form complete in all aspects shall be submitted at Based on the minimum eligibility criteria of the regulator under whose remit the dominant feature of the product falls, the Coordination Group (CG) (FinTech, RBI) shall conduct preliminary scrutiny of the application and forward the same to the concerned PR and AR(s) under whose purview the innovation falls.

Application form and SOP:

Please click here to down the application form for IoRS. The application form complete in all aspects shall be submitted at iors@rbi.org.in, through electronic mail. The SOP applicable for IoRs can be referred by clicking here.

Post Successful exit from IoRS, what next?

Post successful exit from the IoRS, the entity shall approach PR and AR(s), for authorisation and for seeking regulatory dispensation before launching the product in the market. The decision of respective regulator shall be binding on the entity.

As an investor:

You can explore the Fund Ecosytem at GIFT-IFSC

Click to refer to International Financial Services Centres Authority (Fund Management) Regulations, 2022 and its FAQs
You can invest in the FinTech Entities at GIFT- IFSC

Click here to refer to our FinTech Entities and more details on the same
You can collaborate with IFSCA through an MoU

For more details on the same, kindly e-mail us at fe-sandbox@ifsca.gov.in

As a Mentor

You can mentor the FinTech Entities at GIFT- IFSC

Click here to refer to our FinTech Entities and more details on the same
You can collaborate with IFSCA in your area of expertise.

Click here for permissible list of Areas/Activities of IFSCA under FinTech/ TechFin. Further, for more details on the MoU, kindly e-mail us at fe-sandbox@ifsca.gov.in

Contact us

If you still have any further doubts and wish to connect with us, please drop in an e-mail (on fe-sandbox@ifsca.gov.in) with the following details and we shall get in touch with you at the earliest:

Full Name
Name of the Entity
Business Email:
Contact Number (with ISD code):
Brief query
Pitch deck of your proposed solution (if available)

I. General Introductory Questions

1. What is GIFT-CITY?

Gujarat International Finance Tec-City (GIFT City) is an emerging global financial and IT services hub to facilitate the delivery of a wide range of financial services globally.
GIFT City is a Smart City and a planned commercial business hub located in Gandhinagar, Gujarat. It is a greenfield project providing modern amenities for commercial, residential and social purposes. There are two parts to the GIFT City:

Domestic Tariff Area (DTA) and
Multi-service Special Economic Zone (GIFT SEZ).

GIFT SEZ is India’s maiden International Financial Services Centre (IFSC) set up under section 18 of the Special Economic Zone Act, 2005 (“SEZ Act 2005”)

2. What is the difference between IFSC, GIFT-IFSC and IFSCA?

International Financial Services Centre (IFSC):
Section 18 of the SEZ Act, 2005 provides for the setting up of an IFSC in a Special Economic Zone (SEZ) post approval of the Central Government. By virtue of this, the Central Government approved for setting up country’s maiden IFSC at the GIFT City, Gandhinagar. An IFSC enables entities to cater to customers outside the jurisdiction of the domestic economy. Such centres deal with flows of finance, financial products and financial services across borders in “Specified foreign currencies*. The IFSC seeks to bring back those financial services transactions that are currently carried on outside India by overseas financial institutions and overseas branches/ subsidiaries of Indian financial institutions to the Indian shores.

The setting up of the IFSC in India is also aimed at tapping global capital flows to meet India’s development needs and simultaneously provide a globally competitive financial platform for the full range of international financial services at the regional and global level.
- for more details on “specified foreign currencies”, please refer response to Q. No. 1 of Part V (other questions)
Gujarat International Finance Tec International Financial Services Centre (GIFT-IFSC):
GIFT IFSC is India’s first IFSC located in GIFT City, Gandhinagar, Gujarat, India to provide world-class infrastructure and services for financial institutions operating in areas such as banking, insurance, capital markets, funds management and other financial products, services or institutions.
International Financial Services Centres Authority (IFSCA):
IFSCA is a statutory authority established by Government of India on April 27, 2020, under the IFSCA Act, 2019 with the mandate to regulate financial products, services, or institutions in IFSC. IFSCA as a unified regulator regulates activities related to Banking, Capital Market, Insurance, Pension funds and other financial products, services, or institutions in IFSC. In order to regulate them section 13 of the IFSCA Act, empowers the IFSCA to exercise all the powers exercisable by the appropriate regulators namely RBI, SEBI, IRDAI and PFRDA under their respective Acts as specified under the First Schedule of IFSCA Act, in so far as the matter related to regulations of financial products, services or institutions in IFSCs.

The main objective of the IFSCA is to develop a strong global connect and focus on the needs of the Indian economy as well as to serve as an international financial platform for the entire region and the global economy as a whole.

3. What are the benefits of setting up operations in GIFT IFSC?

The financial institutions enjoy certain benefits for setting up operations in GIFT IFSC. Some of the benefits include: a state-of-the-art infrastructure at par with other leading global financial centres, a liberal tax regime, financial incentives, and a strong regulatory and legal environment.

Click here for more details on the tax incentives at GIFT IFSC.

II. FinTech Entity Framework (Authorization and Limited Use Authorisation)

1. What is the recognition given by IFSCA to Entity engaged in providing Technology oriented solutions?
Or
Please provide details of the FinTech Entity Framework circular issued by IFSCA.

IFSCA Circular dated April 27, 2022, on “Framework for FinTech Entity in the IFSCs” (“FE Framework”) empowers IFSCA to grant Authorization or Limited Use Authorization to eligible domestic and foreign entities as a “Fintech Entity” (‘FE”) for carrying out fintech or techfin activities enumerated in Annexure-I of the FE Framework.

Limited Use Authorization :

A Limited Use Authorization (Sandbox) is a testing environment under which entities operating in the capital market, banking, insurance, and other financial services space are provided certain facilities and exemptions/ relaxationsto experiment with innovative FinTech/Techfin solutions for a limited time frame either in live market, (Regulatory Sandbox ) or in isolation from live market ( Innovation Sandbox) and in accordance with certain boundary conditions as may be determined by IFSCA.

The following are different types of Sandboxes:

IFSCA FinTech Regulatory Sandbox
IFSCA FinTech Innovation Sandbox
Inter-operable Regulatory Sandbox (IoRS) with IFSCA as Principal Regulator
Overseas Referral Regulatory Mechanism / FinTech Bridges of IFSCA Click here to know more details about Limited Use Authorisation (types of Sandbox), its eligibility, conditions, etc.

Authorization: FinTech and TechFin entities having:

a deployable solution/working product; and
a revenue earning track record in at least one of the last three financial years

can apply to IFSCA to obtain Authorization, without entering into the Sandbox. Click here to know more details about Authorisation, eligibility, conditions, etc.For more details on the eligibility to apply please refer response to Q. No. 3 of this tab.

2. What is the difference between FinTech and TechFin under the FinTech Entity Framework of IFSCA ?

‘FinTechs’are categorised as those entities providing financial technology solutions that result in new business models, applications, process, or products in financial services regulated by IFSCA.

‘TechFins’are those entities that provide an advanced/ emerging technology solution(s) which aid and assists activities in relation to financial products, financial services, and financial institutions.

3. Which entities are eligible to apply under the FE Framework?

The entity shall satisfy the following conditions:

In case Applicant is from India:
- An entity registered with DPIIT as a start-up related to FinTech; or
- A company or LLP incorporated in India; or
- Branch of an Indian Company or LLP in IFSC; or
- An entity working directly or indirectly in the ecosystem regulated by RBI / SEBI/ IRDAI/ PFRDA
In case Applicant is from Outside India: An entity from any jurisdictions except those jurisdictions which are identified in the public statement of FATF as “High-Risk Jurisdictions subject to a Call for Action” (i.e. black list)
b) The entity shall undertake one of the activities under the permissible areas/ activities of FE Framework.

Please refer response to Q. No 2 of this tab above to understand the difference between a FinTech and TechFin.

Click here to know the Permissible Areas/ Activities of IFSCA under Fintech/ TechFin

4. What is the difference between Authorization and Limited Use Authorization

Please refer response to Q No. 1 above of this tab.

5. What are the types of Sandbox under Limited Use Authorization?

Please refer response to Q No. 1 above of this tab.

6. For seeking authorization, is profits (Gross/Net) mandatory criteria.

For an Entity seeking Authorization, a revenue earning track record in at least one of the last three financial years is mandatory.

Please refer response to Q No. 1 above of this tab to know more details about Authorization

7. When is a Security Assessment Report if available (Security Audit Certificate/ VAPT Certificate requiredch?

The Entity shall at all times ensure proper cyber security systems to protect against cyber threats, data leakage, payment security, etc.

While applying for Authorization under FE Framework, the Entity shall submit Security Assessment Report if available (Security Audit Certificate/ VAPT Certificate), (from Cert-In empanelled Auditor – if Indian Entityor from an equivalent nodal Agency- if Entity is from outside India). However, IFSCA may mandate the Security Assessment Report if available (Security Audit Certificate/ VAPT Certificate) for certain entities applying for Limited Use Authorization (Sandbox).

Further, once authorised by IFSCA as a FinTech Entity, the entity shall provide relevant certifications, Security Assessment Report if available (Security Audit Certificate/ VAPT Certificate reports or any other information / document / clarification on the matter, as sought by the IFSCA, from time to time.

8. What are the Applicable Fees and Application Forms for applying for Limited Use Authorization and Authorization under FE Framework?

Sr No	Type of Application	Relevant Framework/ Scheme	Form	E-mail id for submission of form and relevant documents	Fees
1	Limited Use Authorization	Framework for FinTech Entity in the IFSCs	Download	fe-sandbox @ifsca.gov.in	For Foreign Applicants only Application Fee : USD 100 Limited Use Authorization Fee (once approved): USD 500
2	Authorization	Framework for FinTech Entity in the IFSCs	Download	fe-sandbox @ifsca.gov.in

*For manner of payment for the above fees, please click here to refer to the circular of IFSCA “Fee Structure for the entities undertaking or intending to undertake permissible activities in IFSC” dated May 17, 2023

9. What are the documents to be submitted along with the Application Form for submission of Application under Framework for FinTech Entity (Checklist of Documents)

Please click here to know the documents to be submitted.

III. Incentive Scheme and different types of grants

1. What is IFSCA FinTech Incentive Scheme and what type of Grants are offered by IFSCA and who are eligible for Grants?

IFSCA notified IFSCA (FinTech Incentive) Scheme, 2022 (“the scheme”), with an objective to promote the establishment of a world class FinTech Hub, at GIFT IFSC by providing financial support to FinTech activities in the form of specific grant(s) as specified in the scheme, based on their eligibility and fulfillment of terms and conditions, as may be specified under the scheme.

The Grants contemplated under the Scheme shall be available to the eligible FinTech Entity (FE):

which is part of the IFSCA’s Regulatory or Innovation Sandbox; (if you are not a part of it, please click here to know more about the Regulatory and Innovation Sandbox and thereby apply for the same));or
which is referred to the IFSCA under a FinTech bridge arrangement with a Counterpart Regulator; or
which has either participated or is participating in any Accelerator or Cohort or Special Programme supported or recognized by IFSCA; or
which is referred to IFSCA by an entity(ies) having Memorandum of Understanding or collaboration or special arrangement with it

The following are the different types of grants:

Sr. No	Grant Category	Grant Description	Grant Amount (Max.) (in INR Lacs)
1.	FinTech Start-up Grant	which is referred to IFSCA by an entity(ies) having Memorandum of Understanding or collaboration or special arrangement with it Minimum Viable Product (MVP) * MVP’ means a version of a product with minimum features for providing feedback for future product development by the early users.	15
2.	Proof of Concept (PoC) Grant* *PoC means demonstration of a concept, principle or idea about its feasibility and potential.	For the purpose of conducting a PoC in GIFT IFSC or globally purpose of conducting a PoC by an early or mature FE in domestic market or overseas	50
3.	Sandbox Grant	This grant is provided for FE selected under IFSCA Sandbox (Limited-Use Authorization) to experiment with innovative products or services in sandbox.	30
4.	Green FinTech Grant	This grant is provided to a FE for developing solutions facilitating sustainable finance and sustainability linked finance, including ‘Environmental, Social and Governance (ESG)’ investments.	75
5.	Accelerator Grant	To support accelerators / cohorts at GIFT IFSC	10 per Cohort
6.	Listing Support at IFSC	This grant is provided to an aspiring Domestic FE authorised by IFSCA, to go for listing on stock exchanges recognised by the IFSCA.	15

Please Click here to know more about the eligibility of grants, conditions, etc

2. What are the Applicable Fees and Application Forms for applying for Grants under FinTech Incentive Scheme?

Sr. No	Relevant Framework/ Scheme	Form	E-mail id for submission of form and relevant documents	Fees
1	For all types of grants (except Accelerator Grant)	IFSCA (FinTech Incentive) Scheme, 2022	Download	fe-incentive @ifsca.gov.in	For all Applicants (Indian /Foreign): Application fee: USD 100
2.	Accelerator Grants	IFSCA (FinTech Incentive) Scheme , 2022	Download	fe-incentive @ifsca.gov.in	For all Applicants (Indian /Foreign): Application fee: USD 100

*For manner of payment for the above fees, please click here to refer to the circular of IFSCA “Fee Structure for the entities undertaking or intending to undertake permissible activities in IFSC” dated May 17, 2023, as amended

3. What are the documents and details to be submitted along with Application form for Grants.?

The documents and details to be submitted along with Application form for Grants are mentioned in the Application form itself.

Please refer response to Q. No. 2 above of this tab to download the Application form for relevant type of grant, which mentions the details and documents to be submitted along with it.

IV. Accelerator

1. What is an Accelerator?

An accelerator is an entity whose focus/core area is to provide support to start-ups/growth-driven entities by conducting cohorts to enable them to scale fast. The support can be in the form of resources (people and money), mentors, connections, knowledge, etc.

2. What is the recognition given by IFSCA to Accelerators?
Or
Please provide details of the FinTech Entity Framework circular issued by IFSCA for Accelerators

An accelerator seeking Authorization or Limited Use Authorization under the Framework for FinTech Entity in the IFSCs (“FE Framework”), shall conduct cohorts as per permissible Areas/Activities of IFSCA and thereby identify eligible FinTechs and/or Techfins, for their entry into IFSCA’s Regulatory / Innovation Sandbox or Authorization

Click here for an illustrative list of permissible areas/activities (FinTech/ Techfin) for cohorts and more details on the framework.

Below are the types of Authorization for an Accelerator:

Limited Use Authorization (LUA)
An Accelerator desirous to operate from India or any other FATF compliant countries/ jurisdictionsshall seek Limited Use Authorization as FinTech Entity
Authorization
An Accelerator desirous to operate from GIFT-IFSC shall seeking Authorization as a Fintech Entity (IFSCA may grant ‘In principle approval to an Accelerator for a period of 120 days).

3. What are the eligibility criteria for Accelerators to apply under the FE Framework?

If an Indian Accelerator:
- An entity registered with DPIIT as start-up related to FinTech; or
- A company or LLP incorporated in India; or
- Branch of Company/ LLP in IFSC; or
- An entity working directly or indirectly in the ecosystem regulated by RBI / SEBI/ IRDAI/ PFRDA
OR
If a Foreign Accelerator: An entity from jurisdictions except those jurisdictions which are identified in the public statement of FATF as “High-Risk Jurisdictions subject to a Call for Action” (i.e. black list
Additionally, the Accelerator to fulfil a minimum of two (02) of the below-mentioned eligibility Criterion:
- have operated at least one cohort (physical, virtual and/or hybrid) as per Annexure – I of FE Framework;
- have experience in raising funds and/ or bringing Investors for its supported entities and a minimum of cumulative INR Five Crores (50,000,000/-) should have been raised by it for its supported entities;
- have signed Memorandum of Understanding(s)) with international Industry or Academic Partners, and similar kind of institutions;
- is a recognized Technology Business Incubator (TBI) by Department of Science & Technology (DST), Govt of India or have received grants from DST, Ministry of Electronics & Information Technology (MeitY) or Biotechnology Industry Research Assistance Council (BIRAC), National Institution for Transforming India (NITI Aayog) or similar institutions in other jurisdictions;
- incubated a minimum of 100 start-ups in any jurisdiction;
- have incubated a minimum of 10 FinTech start-ups in any jurisdiction;
- have been assisted by Central/State Government(s) or any department/agency of Central/State govt in India or any FATF compliant jurisdiction.
Additional Mandatory requirement for Accelerator seeking Authorization as FinTech Entity is that it shall have a revenue earning track record in at least one of the last three financial years

4. What are the requirements to be fulfilled by an Accelerator subsequent to receiving Authorization/LUA

(i)Cohort specifications

The Accelerator shall operate at least one cohort (physical/ virtual and/or hybrid) per year and the focus area(s) for a cohort(s) shall be as per Annexure – I of FE Framework.
Minimum Size of each Cohort shall comprise 10 FinTechs/ Techfins.
Minimum duration of each Cohort shall be 1 Month.
Maximum duration of each Cohort shall be 12 months
The Accelerator shall ensure that FinTechs and/ or TechFins under its cohort(s) are
1. a. from an FATF compliant Jurisdiction and
2. b. comply with and develop proper procedures and systems for onboarding of their customers including KYC/AML/FATF checks/ monitoring etc. and also comply with the relevant Guidelines of IFSCA and any other relevant laws and regulations as may be applicable from time to time.

(ii) Others

The Accelerator shall share with IFSCA the details of planned cohorts within 3 months from the date of issuance of Authorization/ Limited Use Authorization letter by the Authority or at such regular intervals as mutually agreed with the Authority.
The Accelerator may advice FinTech and/or TechFins in its cohort(s) regarding (including but not limited to) adequate security systems to protect against cyber threats, data leakage, payment security relevant certifications, VAPT reports and the results (from Cert-In empanelled Auditor or an equivalent nodal Agency).
shall comply with clauses 15 to 23 of the FE Framework and other terms and conditions as may be prescribed by IFSCA from time to time.

(iii) Specific requirements for Accelerators which have been granted “Authorization” under FE Framework

operate from IFSCs in either of the following forms:

Newly established/ incorporated body corporate in the IFSCs; or
a subsidiary of an Indian or foreign body corporate in IFSCs; or
establish a branch of Indian or foreign body corporate in IFSCs
shall have a bank account in any of the IFSCs Banking Units to accept remuneration/ funds in a Specified foreign currencies from any of its cohort(s) participants, stakeholder, or any other entity.

5. Is an Accelerator eligible for grant?

An Accelerator that has been granted Authorization/ LUA as a FinTech Entity shall be eligible to apply for the following number of grant(s) in a year, per focus area as mentioned below in accordance with International Financial Services Centres Authority (FinTech Incentive) Scheme, 2022:

One grant, for an accelerator not based in IFSC.
Three grants, for accelerator based in IFSC.

Please click here for more details

6. What are the Applicable Fees and Application Form for applying for Accelerator grant?

Relevant Framework/ Scheme	Form for Accelerator Grants	E-mail id for submission of form and relevant documents	Fees
IFSCA (FinTech Incentive) Scheme, 2022	Download	fe-incentive @ifsca.gov.in	For all Applicants (Indian /Foreign): Application fee: USD 100

V. Other Questions

1. Can an entity carry out rupee denominated transactions from GIFT City?
Or
What are the permissible currencies in which entities can transact / do their business in GIFT IFSC

GIFT City has two Zones:

Domestic Tariff Area (DTA)
Multiservice Special Economic Zone (SEZ) with International Financial Services Centre

All the domestic (Rupee-denominated/ INR) transactions can be undertaken from DTA.

As per section 20 of IFSCA Act, 2019 as follows:

Every transaction of financial services in an International Financial Services Centre shall be in such foreign currency as may be specified by regulations in consultation with the Central Government

All transactions in IFSCs shall be undertaken in specified foreign currencies and only via bank transfers

The IFSCA may allow transactions denominated in INR in IFSCs provided such transactions are settled in the specified foreign currencies. Therefore, transactions denominated in INR may be undertaken in IFSC, if expressly permitted by the IFSCA and settlement of such transactions shall be in a freely convertible foreign currency.

The following are the specified foreign currencies as per first schedule of International Financial Services Centres Authority (Banking) Regulations, 2020 (as amended):

US Dollar (USD)
Euro (EUR)
Japanese Yen (JPY)
UK Pound Sterling (GBP)
Canadian Dollar (CAD)
Australian Dollar (AUD)
Swiss Franc (CHF)
Hong Kong Dollar (HKD)
Singapore Dollar (SGD)
UAE Dirham (AED)
Russian Rouble (RUB)

For more details on the aforesaid Regulation, kindly click here

2. Can an Entity focused on domestic (India) operations only, set up office in GIFT-IFSC?

An entity setting up office in GIFT-IFSC shall have focus on global outreach and opportunities and not cater only to domestic Indian market from GIFT IFSC. The use cases for setting operations in GIFT IFSC should be as below:

Landing Pad for Foreign FinTechs -to explore India markets
GIFT IFSC as a Market
Launch Pad for Domestic FinTechs - to go global

3. When is it mandatory to set up an office in GIFT – IFSC?

Limited Use Authorization (Sandbox): There is no requirement for an Entity to set up an office at GIFT IFSC during the Sandbox period unless a bank account is required to be opened in IFSC, if directed by IFSCA in its approval.
During its test conditions, if the entity (on the basis of said Limited Use Authorization of the IFSCA), is accepting any remuneration/funds from any of its customers, stakeholder or any other entity, it shall have bank account in any of the IFSC Banking Units (IBUs) and the same, is subject to a careful perusal of use-case(s) proposed by the Entity and appropriate guidance or approvals as relevant from the Competent Authority may be sought.
Authorization- Once Authorized by IFSCA as a “FinTech Entity” (FE), the FE shall establish an office in GIFT IFSC and commence its operations within 120 days from Authorization or any such timeframe as may be specified by IFSCA.

4. What is the mode of establishing an office/ entity in GIFT IFSC?

The Entity shall operate from GIFT-IFSC in either of the following forms:

Newly established/ incorporated body corporate in the IFSC; or
a subsidiary of an Indian or foreign body corporate in IFSC; or
establish a branch of Indian or foreign body corporate in IFSC

5. What is the process of establishing a Company /Limited Liability Partnership in GIFT IFSC ?

An entity desirous of establishing a company or Limited Liability Partnership in the GIFT-IFSC shall be incorporated under the provisions of Companies Act, 2013 or Limited Liability Partnership Act, 2008 respectively.

(i) For information on the process of incorporation may be referred at:
- https://www.mca.gov.in/MinistryV2/incorporation_company.html
- https://www.mca.gov.in/LLP/pdf/HowToIncorporateLLP.pdf
For ease of SEZ approval, establishing an office in GIFT IFSC, etc. please refer on the below link for various other requirements:
- https://www.giftgujarat.in/business/ifsc?tab=Start%20a%20business
- https://giftsez.com/starting-business-at-gift-sez.aspx

6. What are the relevant capital controls in India?

GIFT IFSC caters to the customers outside the jurisdiction of domestic economy. Such centres deal with the flow of finance, financial products, and services across the borders.
Under the Indian context, GIFT IFSC is a jurisdiction that provides financial services to non-residents and residents (Institutions), in foreign currency other than Indian Rupee (INR).
IFSC in India is treated as a “deemed foreign territory” located on Indian soil with a similar ecosystem at par with other offshore financial service jurisdictions.
As per Foreign Exchange Management (IFSC) Regulations, 2015, any financial institution or branch of a financial institution set up in the IFSC and permitted/recognised as such by the Government of India or a Regulatory Authority shall be treated as a person resident outside India.
Thus, the capital controls applicable in Indian jurisdiction are NOT APPLICABLE in GIFT IFSC. However, the applicability of the same on profits and dividends may be subject to the local tax and company laws and need further consideration. So, a discussion with a Tax Expert is advisable.

7. What are the relevant Withholding Taxes?

The applicability of Withholding Tax pertains to a specific activity and is also transaction-specific.
With respect to Income Tax, there is no distinction between an IFSC unit and a domestic unit as of now. Also, the presence of a Double Taxation Avoidance Agreement between India and the specific country is to be taken into account.
As per the Finance Bill, 2023:

a beneficial withholding tax rate of 10% under Section 115A read with Section 80LA for dividends received by non-residents from IFSC units shall be applicable.
the benefit of Section 194LC has also been extended at withholding rate of 9% to long-term bonds or rupee-denominated bonds issued after July 1, 2023, which are listed on recognised stock exchanges in IFSC.

8. What is the applicability of Indian Legal System in GIFT IFSC and status of Arbitration mechanism in GIFT IFSC.?

Currently the Indian Legal System applies in GIFT-IFSC and the jurisdiction applicable is the Courts of Gandhinagar District, Gujarat.
Further it is also envisagedto set up an International Arbitration Centre in GIFT-City for timely settlement of disputes under international jurisprudence.

9. How can one book an office space at GIFT IFSC?

You may get in touch with GIFT City office for the same. Details as below:

Address: EPS - Building no. 49A, Block 49, Zone 04, Gyan Marg, GIFT City, Gandhinagar-382355.
Website: https://www.giftgujarat.in/
E-mail: query@giftgujarat.in
Contact no: +91-9099700247| 079-61708300 | 1800 120 1300

GVFL Limited

GVFL Limited is pioneer of Venture Capital in India. Promoted by World Bank and Government of Gujarat in 1990, GVFL is an independent, autonomous Board managed venture finance company based in Ahmedabad, Gujarat, India. The main purpose of the Company is to support venture capital ecosystem in multiple sectors including FinTech sector by funding and encouraging entrepreneurs with innovative Ideas.

This MoU focuses on collaboration between the two organization for exchange of information and undertaking diverse initiative as regards FinTech industry including holding seminars, webinars, conferences, etc., for the growth of FinTech in the GIFT IFSC
It also provides scope for guidance, mentorship and other spectrum of support to the FinTechs working in the accelerator(s)/Cohorts operating in GIFT IFSC and the entities in regulatory sandbox of IFSCA

Press Release

Department of Space

The Department of Space (DOS) has the primary objective of promoting development and application of space science and technology to assist in all-round development of the nation.Towards this, DOS has evolved the following programmes :

Launch Vehicle programme having indigenous capability for launching spacecrafts.
INSAT Programme for telecommunications, broadcasting, meteorology, development of education etc.
Remote Sensing Programme for application of satellite imagery for various developmental purposes.
Research and Development in Space Sciences and Technology for serving the end of applying them for national development.

This MoU focuses on collaboration between the two organization for exchange of information and undertaking diverse initiative as regards FinTech industry including holding seminars, webinars, conferences, etc., for the growth of FinTech in the GIFT IFSC
It also provides scope for guidance, mentorship and other spectrum of support to the FinTechs working in the accelerator(s)/Cohorts operating in GIFT IFSC and the entities in regulatory sandbox of IFSCA

Press Release

T- Hub Foundation

"The T-Hub Foundation is an innovation hub and ecosystem enabler based out of Hyderabad, India. T-Hub works in collaboration with innovation partners and enablers to build future-ready innovation ecosystem"

Press Release

Karnataka Digital Economy Mission (KDEM)

Karnataka Digital Economy Mission, initiative of Government of Karnataka, designed to function as the knowledge bridge between the Government of Karnataka and industry to accelerate growth and investments in the field of Information Technology sector in Karnataka. A not-for-profit, Section ‘8’ organization under the aegis of the Department of Electronics, Information Technology, Biotechnology and Science & Technology, Government of Karnataka, driven by highly skilled, energetic and dynamic professionals. Industry Partners – ASSOCHAM, IESA & NASSCOM.

Launch Vehicle programme having indigenous capability for launching spacecrafts.
INSAT Programme for telecommunications, broadcasting, meteorology, development of education etc.
Remote Sensing Programme for application of satellite imagery for various developmental purposes.
Research and Development in Space Sciences and Technology for serving the end of applying them for national development.

IIMK LIVE

The IIMK LIVE is an innovation hub and ecosystem enabler based out of IIM Kozhikode, Kerala, India. IIMK LIVE works in collaboration with innovation partners and enablers to build future-ready innovation ecosystem

Launch Vehicle programme having indigenous capability for launching spacecrafts.
INSAT Programme for telecommunications, broadcasting, meteorology, development of education etc.
Remote Sensing Programme for application of satellite imagery for various developmental purposes.
Research and Development in Space Sciences and Technology for serving the end of applying them for national development.

Press realease

IHub Data, IIIT Hyderabad

Hub-Data is a Technology Innovation Hub for Data Banks, Data Services and Data Analytics (IHub-Data) at IIIT Hyderabad which was established by IIIT Hyderabad under the National Mission on interdisciplinary Cyber-Physical Systems (NM-ICPS) scheme funded by DST, Govt of India with an objective to bring closer different stakeholders - research community, academics, government officials, NGOs, industry leaders, incubating start-ups and social science critics -for enhancing or exploring mutual collaboration. The cornerstone development for IHub- Data lies at the interdisciplinary boundaries of science, engineering, and sociology that promises to have an impact on the larger society as such
Press realease

IIM Lucknow, EIC

The IIML EIC is promoted by Indian Institute of Management Lucknow and supported by National Science & Technology Entrepreneurship Development Board (“NSTEDB”), Department of Science and Technology (“DST”), Government of India and Government of state of Uttar Pradesh.The IIML EIC is focused on providing speed and faster growth to new ventures for successful commercialization of technology / product through a combination of accelerator program, seed capital, corporate venture capital funds, smart co- working space, corporate market access, mentoring and training programs
Press realease

BITS Pilani, PIEDS, Finxcelerator

The Pilani Innovation and Entrepreneurship Development Society (PIEDS) TBI BITS Pilani, Pilani Campus is a non-profit society, its initiatives are spread across incubation, acceleration, seed funding, and innovation. PIEDS has supported more than 170 startups, incubated 132 startups, and funded 62 startups. We aim to provide world-class support for DeepTech Innovations, bringing advanced tech labs, mentoring experts, product innovation, and acceleration programs. We have expert mentors in defence & aerospace, robotics, IoT, and other allied areas.
Press realease

Monetary Authority of Singapore (MAS)

The Monetary Authority of Singapore (MAS) is Singapore’s central bank and integrated financial regulator. As a central bank, MAS promotes sustained, non-inflationary economic growth through the conduct of monetary policy and close macroeconomic surveillance and analysis. It manages Singapore’s exchange rate, official foreign reserves, and liquidity in the banking sector. As an integrated financial supervisor, MAS fosters a sound financial services sector through its prudential oversight of all financial institutions in Singapore – banks, insurers, capital market intermediaries, financial advisors and financial market infrastructures. It is also responsible for well-functioning financial markets, sound conduct, and investor education. MAS also works with the financial industry to promote Singapore as a dynamic international financial centre. It facilitates the development of infrastructure, adoption of technology, and upgrading of skills in the financial industry.

Press Release

The Israel Fintech Center

The Israel Fintech Center –IFC is an NGO (reg. # 580572519), established in 2013 and fully authorized by the Ministry of Justice in Israel. IFC, formerly known as City TLV, represents the entire ecosystem of Fintech in Israel, including: innovators, established companies, regulators, financial institutions & services, investors, academia, consultants, and more. It is generously supported by a select group of strategic partners as well as membership fees. In 2021 IFC won the prestigious governmental bid to serve as the administrator of Fintech.IL Innovation Community, a joint venture of the Bank of Israel, the Ministries of Finance and of Industry and Economy, the Israel Securities Authority, the Innovation Authority and the National Digital Israel Initiative (Gov.il).

Watch this space for more updates on InFinity Forum 2.0

PMWell Technologies Pvt limited

Category: FinTech SubCategory: SubCategory Jurisdiction: India Limited Use Authorization (LUA) /Authorization (A): LUA Sandbox Type:Innovation Sandbox Date of Registration (Authorization/ LUA): " 01-02-2023" Registration No (Authorization no./ LUA no.): FE/LUA/015/644/2022-23 Address: Regus Business Centre Pvt Ltd 2nd/3rd/4th Floor Duru House, Juhu Tara Road,Next to JW Marriot,Juhu, Mumbai- 400049, Maharashtra E-mail id and website:sumit@protectmewell.com Website : https://protectmewell.com/"

The FE is developing a platform that will find gaps and suggests insurance products to fill these gaps appropriately thus protecting individuals throughout the lifetime. The algorithm covers Life and health insurance both

International Financial Services Centres Authority

"Now it's time to convert these FinTech initiatives into a FinTech revolution"

FinTech

Are you a FinTech Entity?

The following are eligible FinTech Applicants:

Permissible Areas/Activities of IFSCA under FinTech

Steps to proceed for FinTech Application:

Grants:

If not a FinTech, then?

Mentorship

TechFin

Are you a TechFin Entity?

The following are eligible TechFin Applicants:

Permissible Areas/Activities of IFSCA under TechFin

Steps to proceed for TechFin Application:

Grants:

Mentorship

If not a TechFin, then?

Authorization

Class/categories of FinTech and TechFin entities having:

can apply to IFSCA to obtain Authorization, without entering into the Sandbox.

Why an Authorization?

Permissible Areas/Activities of IFSCA under ‘FinTech’ and ‘Techfin to apply under Authorization:

If yes for the above, check your eligibility to apply further for Authorization:

Application form and fees

Post Authorization:

Limited Use Authorization (Sandbox)

Below are the various types of Sandbox of IFSCA:

Permissible Areas/Activities of IFSCA under ‘FinTech’ and ‘Techfin to apply under Sandbox:

If yes for the above, check your eligibility to apply further for Authorization:

If you meet the eligibility above, Congratulations you may apply to IFSCA for Limited Use Authorization under the Regulatory Sandbox or Innovation Sandbox!!!!

Application form and fees

Grants:

Accelerator

Accelerator and Permissible Areas/Activities for Cohorts:

Eligibility to apply as an Accelerator for LUA/ Authorization:

Are you an Indian Accelerator?

Are you a Foreign Accelerator?

Does your entity fulfill a minimum of two (02) of the below-mentioned eligibility Criterion:

Additional Mandatory requirement for Accelerator seeking Authorization as FinTech Entity is that it shall have a revenue earning track record in at least one of the last three financial years.

If you meet the eligibility above, Congratulations you may apply to IFSCA for Limited Use Authorization or Authorization as applicable !!!!

Requirements subsequent to receiving Authorization/LUA :

Grants:

Mentorship

FinTech Incentive Scheme

Introduction:

Eligibility for application to Grants:

The types of incentives under the scheme for eligible applicants are:

FinTech Start-up Grant

FinTech Start-up grant

Proof of Concept (PoC) grant

Proof of Concept (PoC) grant

Sandbox grant

Sandbox grant

Green FinTech Grant

Green FinTech Grant

Accelerator Grant

Accelerator Grant

Listing Support Grant

Listing Support Grant

Application form and fees

Expert committee

Prof. Joshy Jacob

Shri Mihir Joshi

Shri T Y Bhatt, IAS

Shri Sandip Shah

Shri J. Pazhamalai

Dr. Efi Pylarinou

Dr. Ira Sobel

Ms. Susanne Chishti

Ms. Dea Markova

Shri Joseph Joshy C

FinTech Focus Areas

An Illustrative list of permissible areas/activities under ‘FinTech’ is as below:

TechFin Focus Areas

An Illustrative list of permissible areas/activities under TechFin is as below:

Focus Areas

Focus Areas

International - Monetary Authority of Singapore (MAS)

Interoperable Regulatory Sandbox (“IoRS”)