Good News for GIFT City: Government Plans to Make Borrowing Easier for Finance Firms!
Here’s some positive news that could give a big boost to financial activity in India’s GIFT City! The government is looking to make it much simpler for finance companies operating there to borrow money from other companies.
Currently, there are specific rules under Section 186 of the Companies Act, 2013, that set limits on how much companies can lend to or borrow from each other. However, Non-Banking Financial Companies (NBFCs) that are registered with the RBI already have some special exemptions from these strict rules.
What’s Changing?
The Ministry of Corporate Affairs (MCA) is now proposing to extend these same NBFC-like exemptions to finance companies that are registered with the International Financial Services Centres Authority (IFSCA), which oversees GIFT City.
In simpler terms, if you’re a finance firm in GIFT City, it could soon become much easier and more flexible to borrow from other companies. This move is aimed squarely at boosting financial operations and making GIFT IFSC an even more attractive global financial hub.
How You Can Have Your Say
The MCA has already examined this proposal after consulting with key bodies like the Department of Economic Affairs, the RBI, and the IFSCA. They are now inviting the public to submit their comments on the proposed rule changes until July 17th. This is your chance to weigh in on a policy that could significantly impact financial markets.
This step clearly shows the government’s commitment to supporting and stimulating growth within GIFT City, positioning it as a key player in the international financial landscape.