July 01, 2026: RBI Clarifies FDI Reporting Framework for IFSC
\nRegulated Entities
\nThe Reserve Bank of India (RBI), in consultation with the International Financial Services
\nCentres Authority (IFSCA), has clarified the reporting framework for Foreign Direct
\nInvestment (FDI) received by regulated entities in GIFT IFSC.
\nThe clarification confirms that while FDI regulations under FEMA do not apply to
\nregulated entities operating in IFSC, information on foreign investments is still required to
\nenable the compilation of India's Balance of Payments (BoP) statistics.
\nAs a result, regulated entities in IFSC will no longer be required to file the Annual
\nForeign Liabilities and Assets (FLA) Return with the RBI. Instead, the responsibility for
\ncollecting the required investment data will shift to IFSCA, which will issue a separate
\nreporting framework and operational guidelines in due course.
\nUntil such guidelines are notified, regulated entities have been advised to await further
\ninstructions from IFSCA.
\nWhy this matters: The clarification eliminates ambiguity around FLA reporting obligations
\nfor IFSC entities, reinforces the distinct regulatory framework applicable to GIFT IFSC, and
\nis expected to streamline compliance by creating a dedicated reporting mechanism through
\nIFSCA while continuing to meet India's statistical reporting requirements.<\/p>\n
AUG 2026 pg. 2
\nJuly 02, 2026: IFSCA and Japan's FSA Strengthen Regulatory
\nCooperation
\nThe International Financial Services Centres Authority (IFSCA) and Japan's Financial
\nServices Agency (FSA) have taken a significant step towards deepening financial sector
\ncollaboration by executing an Exchange of Letters (EoL) during the 16th India\u2013Japan
\nAnnual Summit held in New Delhi.
\nThe Exchange of Letters, signed on June 26, 2026, establishes a formal framework for
\nregulatory cooperation between the two authorities across areas of mutual interest.
\nUnder this arrangement, IFSCA and the FSA will collaborate through the exchange of
\ninformation on regulatory developments relating to financial products, financial services and
\nfinancial institutions. The partnership will also facilitate the sharing of supervisory
\napproaches, policy initiatives and global best practices, helping both regulators strengthen
\ntheir respective financial ecosystems.
\nWhy this matters: The agreement reflects the growing strategic partnership between India
\nand Japan in financial services and reinforces GIFT IFSC's ambition to integrate more closely
\nwith leading global financial centres. Enhanced regulatory cooperation is expected to support
\ncross-border business, promote knowledge sharing, and create a more robust and
\ninternationally aligned financial ecosystem.<\/p>\n
AUG 2026 pg. 3
\nJuly 15, 2026: IFSCA Unveils Roadmap to Position GIFT IFSC as a Global
\nREIT & InvIT Hub
\nThe International Financial Services Centres Authority (IFSCA) has released the report of its
\nExpert Committee on the development of Real Estate Investment Trusts (REITs) and
\nInfrastructure Investment Trusts (InvITs) in GIFT IFSC, outlining a comprehensive
\nstrategy to transform the centre into a global gateway for real estate and infrastructure
\nfinancing.
\nThe report comes at a time when India's infrastructure ambitions require massive long-term
\ncapital, with an estimated USD 4.5 trillion of infrastructure investment needed by 2040 and
\nthe real estate market projected to reach USD 5.8 trillion by 2047. Recognising GIFT IFSC's
\npotential to channel global capital into these sectors, the Expert Committee has proposed a
\nseries of regulatory, tax and product innovations to enhance the jurisdiction's global
\ncompetitiveness.
\nAmong the key recommendations are the introduction of Mortgage REITs (mREITs),
\nexpansion of the REIT and InvIT ecosystem to include Global and Mixed REITs\/InvITs,
\nfaster capital-raising mechanisms, investor protection measures, and tax parity with domestic
\nREITs and InvITs. The Committee has also recommended easing inter-regulatory constraints,
\nincluding exemptions from certain sectoral caps, lock-in requirements and overseas
\ninvestment limits, while enabling dual listings on GIFT IFSC exchanges.
\nWhy this matters: If implemented, these recommendations could significantly strengthen
\nGIFT IFSC's position as an international platform for infrastructure and real estate
\ninvestments. By creating a globally competitive regulatory and tax framework, GIFT IFSC
\ncan attract sovereign wealth funds, pension funds and other long-term institutional investors,
\nsupporting India's infrastructure financing needs while reinforcing its emergence as a leading
\ninternational financial centre.<\/p>\n
AUG 2026 pg. 4
\nJuly 17, 2026: IFSCA Issues Advisory on Updated FATF High-Risk and
\nIncreased Monitoring Jurisdictions
\nThe International Financial Services Centres Authority (IFSCA) has advised all regulated
\nentities to take note of the latest Financial Action Task Force (FATF) updates on
\njurisdictions identified as having strategic deficiencies in their Anti-Money Laundering
\n(AML), Countering the Financing of Terrorism (CFT), and Countering Proliferation
\nFinancing (CPF) frameworks.
\nUnder the FATF's June 19, 2026 review, North Korea (DPRK) and Iran continue to remain
\nsubject to a Call for Action, while Myanmar remains subject to enhanced due diligence
\nmeasures. Additionally, Bosnia and Herzegovina and Iraq have been added to the list of
\njurisdictions under increased monitoring, whereas Algeria and Namibia have been removed
\nfollowing improvements in their AML\/CFT frameworks.
\nIFSCA has advised regulated entities to incorporate these updates into their risk-based
\nAML\/CFT\/CPF compliance frameworks when assessing customer relationships and cross-
\nborder transactions. At the same time, the Authority has clarified that the advisory does not
\nprohibit legitimate trade or business transactions with the identified jurisdictions,
\nprovided appropriate risk assessment and due diligence measures are followed.
\nWhy this matters: The advisory reinforces IFSCA's commitment to aligning GIFT IFSC
\nwith global financial integrity standards. By ensuring that regulated entities remain
\nresponsive to evolving FATF guidance, the Authority aims to strengthen the resilience,
\ncredibility, and international reputation of GIFT IFSC as a trusted global financial centre.<\/p>\n","protected":false},"excerpt":{"rendered":"
July 01, 2026: RBI Clarifies FDI Reporting Framework for IFSC Regulated Entities The Reserve Bank of India (RBI), in consultation with the International Financial Services Centres Authority (IFSCA), has clarified the reporting framework for Foreign Direct Investment (FDI) received by regulated entities in GIFT IFSC. The clarification confirms that while FDI regulations under FEMA do not apply to regulated entities<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[447],"tags":[],"class_list":["post-3158","post","type-post","status-publish","format-standard","hentry","category-gift-city"],"yoast_head":"\n