The Securities and Exchange Board of India (SEBI) has unveiled a progressive framework to ease the entry of Indian stock brokers into the GIFT-International Financial Services Centre (GIFT-IFSC). This move is set to simplify cross-border operations and open new international avenues for brokers.
Key Highlights of SEBI’s New Guidelines:
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No Prior SEBI Approval Required: Brokers can now set up a Separate Business Unit (SBU) in GIFT-IFSC without needing SEBI’s prior approval.
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Leverage Existing Subsidiaries: Existing subsidiaries can be designated as SBUs, providing greater operational flexibility.
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Segregated Operations: SBUs must maintain separate accounts and operations from domestic business activities.
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IFSCA as the Regulatory Authority: All SBU operations will be regulated by the International Financial Services Centres Authority (IFSCA).
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Investor Grievance Redressal: IFSCA, not SEBI, will handle investor complaints related to SBU services.
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Multiple Setup Options: Brokers have the freedom to establish an SBU, a wholly-owned subsidiary, or a joint venture in GIFT-IFSC.
Why GIFT-IFSC is a Game-Changer for Stock Brokers:
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Attractive Tax Regime:
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Only 9% Minimum Alternate Tax (MAT) and 10% dividend tax for non-resident SBUs.
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100% income tax exemption for 10 consecutive years within a 15-year period.
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100% capital gains tax exemption for foreign brokers on specified securities.
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Transaction Cost Benefits:
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No Securities Transaction Tax (STT), Commodity Transaction Tax (CTT), or stamp duty on market trades.
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Seamless Currency Operations:
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Free convertibility of foreign currency, making international trading hassle-free.
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Unlock Global Growth While Maintaining Domestic Roots
For stock brokers looking to expand globally while continuing domestic operations, GIFT-IFSC presents a strategic and cost-effective gateway to scale international presence.
📞 Ready to Set Up Your SBU in GIFT-IFSC?
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