The International Financial Services Centres Authority (IFSCA) has invited applications from eligible entities that want to set up and operate the international trade financing services (ITFS) platform at GIFT City in Gandhinagar, Gujarat.
The ITFS platform will function from GIFT IFSC for providing trade financing services. Eligible entities can apply in the prescribed format along with supporting documents to the IFSCA by September 15, the regulator said in a statement on Tuesday.
The IFSCA will then grant an in-principle approval to operate in its regulatory sandbox environment for the said period, before allowing regular operations, it said.
The ITFS would be an electronic platform for facilitating the trade finance requirements of exporters and importers by providing access to multiple financiers. The regulator added that once operational, it will play a role in arranging credit for exporters and importers from global institutions through factoring, forfaiting and other trade financing services at competitive cost.
The platform is expected to be leveraged by exporters and importers across the world for availing trade finance services, making GIFT IFSC a preferred location for international trade financing.
IFSCA has been established as a unified regulator to develop and regulate financial products, financial services, and financial institutions in the International Financial Services Centres (IFSCs) in India. Currently, GIFT IFSC is the only international financial services centre in India.
Prior to the establishment of IFSCA, domestic financial regulators such as RBI, Sebi, PFRDA and IRDAI regulated the business in IFSC.
Also Read: IFSCA chief launches pilot run of International Bullion Exchange; to go live on Oct 1
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today