The International Financial Services Centres Authority (IFSCA) has invited applications from entitites interested in setting up international trade financing services platform at Gujarat International Finance Tec-City (GIFT City).
The framework for setting up of International Trade Financing Services Platform (ITFS) at GIFT International Financial Services Centre (IFSC) was issued by the IFSCA in a circular dated 9 July 2021 for providing trade financing services.
The has been established as a unified regulator to develop and regulate financial products, financial services, and financial institutions in the International Financial Services Centres (IFSCs) in India.
Now, the IFSCA has invited application from eligible entities, which are desirous of setting up and operating the ITFS, to apply in the prescribed format along with supporting documents to the IFSCA by 15 September 2021, the Finance Ministry said in a statement on Tuesday (24 August).
"IFSCA upon satisfaction in the first instance will grant in-principle approval to operate in IFSCA Regulatory Sandbox environment for such period as it may consider appropriate, before allowing regular operations," the ministry said.
The ITFS would be an electronic platform for facilitating the trade finance requirements of exporters and importers by providing access to multiple financiers.
Once operational, it will play an instrumental role in arranging credit for exporters and importers from global institutions through factoring, forfaiting and other trade financing services at competitive cost.
The platform is expected to be leveraged by exporters and importers across the world for availing trade finance services, thereby making GIFT IFSC a preferred location for international trade financing, the ministry said.
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