The two main objectives of the Treasury Centers are the centralized management of the funds and the use of global funds in the group. | Photo credit: Vijay Soneji
The International Authority of Financial Services Centers (IFSCA) has relieved the framework to establish global and regional corporate treasury centers to strengthen Gift City’s appeal as a global investment destination.
Activities such as capital increase, loans, derivative and foreign exchange transactions have been allowed.
“The updated framework provides very necessary clarity to permissible commercial activities. In addition, the introduction of specific permissibility to keep the companions marks a significant step forward, offering greater flexibility for the city’s structures, a new Steggtg,” said Jaiman Patel, partner, Ey India.
Capital can be increased through the issuance of capital shares. Loans include deposits between companies and credit arrangements. Transact or invest in financial instruments issued in IFSC or outside IFSC, making derived transactions and foreign exchange transactions; Factorization and fixation, as well as liquidity management, are now allowed.
The framework aims to bring financial services and transactions that currently carry out in the financial centers on the high seas by Indian corporate entities, as well as by branches abroad or subsidiaries of financial institutions to give IFSC.
A treasure center acts as an internal bank in any multinational corporation. The two main objectives of the Treasury Centers are the centralized management of the funds and the use of global funds in the group.
Conditions are applied
Entities that wish to establish these treasury centers must establish the necessary infrastructure in IFSC, including the office space, appropriate communication equipment and facilities to undertake permissible activities. The entity has to use at least five qualified personnel, based in IFSC, including a treasury chief and compliance officer before the start of operations.
The entity must have a risk management and corporate governance policy. Any change in control or 20 percent or total share capital due to commercial restructuring must see a previous IFSCA approach. He has to demonstrate the ability to meet the requirements of the own fund and his father should not be of a high -risk jurisdiction identified by the Financial Action Task Force.
Posted on April 13, 2025