Global/Regional Corporate Treasury Centres of FC/FU under IFSC

GIFT City, India’s premier international financial and IT services hub, enables licensed Finance Companies and Finance Units (FC/FU) under the IFSC framework to operate as Global or Regional Corporate Treasury Centres (GRCTCs). These entities can undertake a wide range of treasury and financing functions—including lending, trade finance, factoring, forfaiting thereby supporting efficient group-level financial operations while enhancing GIFT City’s stature as a globally benchmarked financial centre.

Legal Structure of Setting up Finance Company/ Finance Entities as GRCTC in GIFT IFSC

To better understand how a Finance Company/Finance Entities as GRCTC can be formed, let’s have a look at the following standard structures in GIFT City - IFSC.

Permissible Services

A finance company or a finance unit may undertake the following activities as GRCTC:

Net Worth Requirements:

 Minimum net worth requirement specifically applicable to CTCs: USD 0.2 million.

Other Financial Requirements

A Finance Company or a Finance Unit as GRCTC is required to maintain the following ratios:

•    Capital Ratio (CR) – Minimum capital ratio at eight percent of its regulatory capital to its risk-weighted assets.

•    Liquidity Coverage Ratio (LCR) –LCR to be maintained on a stand-alone basis.

•    Exposure Ceiling (EC) – The sum of all the exposures to a single or group of counterparties must not be more than 25% of the available eligible capital base.

Process flow of Setting up Finance Co in GIFT IFSC:

Additional Conditions:

1.     Service Recipient can only be:

·         Parent companies

·         Subsidiaries

·         Affiliates or associate entities

·         Branch offices

·         Other entities within the same corporate structure

2.     Factoring and Forfaiting service provider: Additional registration will be required under IFSCA (Registration of Factors and Registration of Assignment of Receivables) Regulations, 2024

Benefits for Finance Company / Unit registered as GRCTC in GIFT City

Regulatory Fees

IFSCA Fees for Finance Company / Unit as GRCTC

SEZ Fees for Finance Company / Unit as GRCTC