IFSCA chairperson Injeti Srinivas says the authority is close to setting up an International Arbitration Centre in GIFT City.
The IFSCA (International Financial Services Centres Authority) is reportedly in the process of setting up an International Arbitration Centre in GIFT City, seeking to ensure speedy resolution of any dispute.
Established in April 2020, the IFSCA is a unified authority to regulate all financial services in IFSCs (International Financial Services Centres) in India. Currently, GIFT City is the only IFSC in the country.
According to IFSCA chairperson Injeti Srinivas, the new arbitration centre will be established along the lines of similar arbitration centres in Singapore and London. A proposal for the new arbitration centre has already been prepared and the IFSCA is in discussion with the law ministry on its establishment.
“In a financial centre, speedy dispute resolution is very critical,” he said. “We are making some headway (in that direction) and are close to setting up an International Arbitration Centre in the GIFT IFSC.”
Srinivas also discussed the establishment of the International Bullion Exchange, noting that the regulations for the new bullion bourse have already been issued. In August, it was announced that a holding company had been created to set up and operationalise the International Bullion Exchange.
During his speech, Srinivas also touched on how effective trade finance arrangements can help SMEs access foreign capital. He said GIFT City can become a hub for SMEs to access trade finance.
He also pointed to opportunities around real-time multi-currency settlement in GIFT City, noting that the existing payment systems like the NEFT and RTGS are effective for domestic transfers but are costly when it comes to cross-border remittances.
“We can emerge as a National Financial Laboratory for experimenting capital account convertibility in a phased manner,” Srinivas said, adding that the IFSCA is in discussions with the RBI (Reserve Bank of India) on such proposals, including the possibility of having a CBDC for offshore INR.
Srinivas also said the IFSCA is in the process of building out an incentive scheme for fintech, seeking to leverage its strengths in a cross border context.
“We can become a gateway and we have taken some steps in the direction for foreign fintech companies looking at market access in India, and for Indian fintech companies, which are looking at market access overseas,” he said.