Chapter IV — Banking, Insurance and Capital Markets Framework Overview

How the same Section 12 single-regulator model extends to IFSC Banking Units, International Insurance Offices and Capital Market Intermediaries.

IFSC Banking Units (IBUs)

A bank (Indian or foreign) already licensed under the Banking Regulation Act may open an IBU inside GIFT City on IFSCA authorisation. An IBU operates in freely convertible foreign currency (predominantly USD), cannot generally accept retail deposits below a specified threshold, and its core activity is wholesale/corporate lending, trade finance and treasury operations for entities transacting in or through the IFSC — not a branch competing for domestic retail banking business.

International Insurance Offices (IIOs) and reinsurers

Insurers and reinsurers (domestic or foreign) can set up an IIO in GIFT City to underwrite international (re)insurance and specialised lines, and to reinsure Indian domestic risk on a cross-border basis — positioned as an alternative to routing that reinsurance capacity through Lloyd's, Bermuda or Singapore.

Capital Market Intermediaries

Broker-dealers, clearing members, investment bankers, portfolio managers, credit rating agencies and other intermediary categories can register with IFSCA to service the India INX and NSE IFSC-SX exchanges and the associated derivatives/depositary-receipt/bond-listing ecosystem in GIFT City, under registration conditions distinct from — though structurally parallel to — their SEBI domestic-market equivalents.

Exchanges and the Bullion market

India International Exchange (India INX) and NSE IFSC-SX are the two IFSC stock exchanges; the India International Bullion Exchange (IIBX) is the dedicated bullion-trading and vaulting venue, the only SEBI/RBI-equivalent-licensed gold-import channel through which Qualified Jewellers can import gold under the IFSCA Bullion framework — decoded further in the Bullion Exchange Regulations page.

Educational summary of the IFSCA Act, 2019, its Regulations and IFSCA circulars as understood at review date 2026-07-18. Not a substitute for the official IFSCA Act/Regulations text, current circulars, or professional advice on a specific transaction.

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