The International Financial Services Centre is an area of central Dublin, part of the city’s CBD. This special economic zone and urban regeneration project was created in the 1980s on reclaimed docklands and derelict state-owned land. Today, the centre is a global financial hub, housing large banks, investment companies, and other financial institutions. In addition to financial services, it is also home to the largest concentration of multinational companies in Europe.
The IFSC was initially intended to attract high-margin activities, such as investment management, securities trading, and banking. While material employment has increased, it is still considerably below that of other European financial centres. As a result, it is attracting notable fund managers, mainly domestic in nature. Despite this, the area is still quite small compared to other major financial centres. Moreover, there is no IFSC in India.
The International Financial Services Centre is located in the former northern dock area of Dublin. It was established by the Custom House Development Authority in response to the country’s commitment to the single European market and abolition of import and export duties within the EU. The International Financial Services Centre was a catalyst in regenerating the northern docklands area. In fact, many international companies have set up their operations and offices in Dublin’s International Financial Services Centre.
While establishing an IFSC is not a simple task, it is vital to a successful business venture. In addition to the regulatory framework and business-friendly environment, it is vital to ensure that all companies are registered and adhere to the rules and regulations of the jurisdiction. By establishing a single, global financial hub, India can bring back financial services and transactions from offshore financial centres. By establishing an IFSC, the country can create an environment as attractive as any other leading international financial center.
An International Financial Services Centre Authority (IFSC) is a government-regulated organization that regulates the financial products and services offered within its jurisdiction. In addition to regulating the activities of financial institutions within its jurisdiction, the authority also collects fines in foreign currencies. It is responsible for developing and regulating financial products and services for the public. The Act defines the authority’s functions and mandate. The IFSC is funded by a fund established under section 15 of the Act.
As of 2015, India’s first IFSC, Gujarat International Finance Tec-City, is set to become India’s gateway to international financial services. The IFSC Authority was set up by the Government of India to regulate the nature of business transacted in the IFSC. It also regulates the functioning of the IFSCs, including their license to operate. It is a unique initiative that will create jobs in the region and benefit the country in the long run.
A newly-built IFSC in Gandhinagar, Gujarat, is the first IFSC in India. IFSCs serve several purposes in today’s age of globalization. IFSCs enable financial companies to reroute their transactions and services to India from offshore financial centres. In addition to promoting international trade and investment, IFSCs provide an enhanced access to global financial markets for Indian corporates. So, why are they attracting international investors?