Alerts & Updates 2nd Dec 2022
With the objective of promoting innovative structures and attracting international players in International Financial Services Centres (IFSC), the International Financial Services Centre Authority (IFSCA) is contemplating to allow variable capital company (VCC) structure in the funds space in the IFSC – GIFT City (Gujarat International Finance Tec-City) and has recently released the Report of the Expert Committee for drafting a Legal Framework for allowing Variable Capital Company Structure in the IFSCs (available here) (Expert Committee Report). This is one of the many other moves to position GIFT City as a global financial hub.
Earlier, IFSCA had constituted an expert committee (Krishnan Committee) to examine the relevance and adaptability of VCCs for IFSCs in India, which released its report on the introduction of VCCs in the IFSC in May 2021. Following the report of the Krishnan Committee, IFSCA had discussions with the relevant stakeholders and meetings with Ministry of Corporate Affairs and other representatives and pursuant to this discussion, IFSCA constituted another expert committee (“Expert Committee”) to draft a legal framework for allowing the VCC structure to operate in IFSCs in India.
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