IFSCA’s 28th Authority Meeting Accelerates GIFT IFSC’s Rise as a Global Finance Centre

A deep-dive into the landmark approvals covering capital-raising mechanisms for listed entities, aircraft leasing SPV structures, and what it means for NRIs, investors, and businesses eyeing GIFT City incorporation

The International Financial Services Centres Authority (IFSCA) convened its 28th Authority Meeting on April 17, 2025, marking a pivotal moment in the evolution of GIFT City IFSC. The approvals announced at this meeting are not incremental tweaks they represent a strategic recalibration of India's most ambitious international financial hub, one that is increasingly being compared with established global centres in Dubai, Singapore, and Luxembourg.

At the heart of these changes are three regulatory frameworks: the Preferential Issue and Qualified Institutions Placement (QIP) mechanism, the Rights Issue framework, and the enabling of Special Purpose Vehicles (SPVs) and Trust and Company Service Providers (TCSPs) for aircraft leasing. Together, they address longstanding gaps in GIFT IFSC's capital markets and aviation finance infrastructure, creating direct value for anyone engaged in Investment Advisory in GIFT City, GIFT City NRI investment planning, GIFT City registration, or GIFT City incorporation.

Capital Raising Reimagined: QIP, Preferential Issues & Rights Issues

The IFSCA Listing Regulations, 2024, have now been strengthened with the inclusion of two powerful capital-raising instruments, the Preferential Issue and QIP framework, and the Rights Issue framework.

Under the Preferential Issue mechanism, listed entities at GIFT IFSC can now allot equity shares, convertible instruments, or warrants to a specific set of identified investors. This is a tool widely used in mature capital markets to bring in strategic investors quickly and at a price that reflects a negotiated premium. The Qualified Institutions Placement (QIP) route, on the other hand, allows companies to raise capital from Qualified Institutional Buyers (QIBs) without the lengthy regulatory approvals required in domestic markets, making it particularly attractive for foreign institutional investors and high-net-worth NRI investors exploring GIFT City funds for NRI structures.

The Rights Issue framework complements these by giving existing shareholders, including those who hold securities through GIFT City NRI accounts or GIFT IFSC-registered funds, the right to subscribe to additional shares at a discount to market price. This is not merely a financial tool; it is an investor-friendly signal that GIFT IFSC is committed to protecting and rewarding early capital allocators.

From an advisory standpoint, professionals offering Investment Advisory in GIFT City services should note that these frameworks dramatically expand the product suite available to clients. Whether guiding an HNI on GIFT City registration, advising an institution on GIFT City incorporation, or structuring a GIFT City NRI portfolio, these new instruments provide previously unavailable optionality.

The Aircraft Leasing Revolution: SPVs, TCSPs & IIBX GIFT City

The approval of an SPV-based framework for aircraft leasing is arguably the most consequential regulatory change to emerge from IFSCA's 28th Authority Meeting. India's civil aviation sector is growing at a pace that demands a mature, domestic financing ecosystem, and GIFT IFSC is now positioned to become that ecosystem's nerve centre.

Special Purpose Vehicles (SPVs) can now be established within GIFT IFSC specifically for the purpose of leasing aircraft. These SPVs, along with Trust and Company Service Providers (TCSPs), benefit from IFSCA's regulatory oversight, India's tax treaty network, and the operational efficiencies of a streamlined IFSC framework. Importantly, this eliminates the need for airlines, lessors, and investors to route transactions through traditional offshore jurisdictions a structural shift that strengthens India's financial sovereignty while maintaining global competitiveness.

IIBX GIFT City, the India International Bullion Exchange, which also facilitates structured financial contracts, adds another dimension to this ecosystem by enabling exchange-based transactions that bring transparency and liquidity to leasing arrangements. With over 370 aviation assets already housed at GIFT IFSC, this framework doesn't begin from zero; it builds on an existing foundation of demonstrated traction.

For businesses evaluating GIFT City incorporation as a base for aviation-related financial activities, TCSPs provide a ready-made administrative infrastructure, enabling foreign promoters to set up professionally managed entities without the overhead of establishing a full-scale operation. Combined with simplified GIFT City registration procedures, this makes GIFT IFSC among the most accessible and credible platforms for international aviation finance.

Why This Matters for NRIs and Global Investors

Non-Resident Indians (NRIs) have long looked to GIFT City NRI frameworks for compliant, tax-efficient investment options that connect them to Indian growth opportunities without the complexity of domestic regulatory systems. The latest regulatory approvals significantly expand the universe of products and structures available to NRI investors.

GIFT City funds for NRI, whether Alternative Investment Funds (AIFs), portfolio management services, or exchange-listed vehicles, now operate within a more complete regulatory ecosystem. The ability to participate in rights issues, access QIP structures, and invest in SPV-based aviation assets means NRI portfolios can be diversified across asset classes and risk profiles in ways previously only possible through offshore intermediaries.

Moreover, for NRIs seeking Investment Advisory in GIFT City, the expanding regulatory framework brings GIFT IFSC advisors and managers closer to global standards, making the advisory relationship more structured, transparent, and accountable.

The Bigger Picture: From Tax Efficiency to Financial Substance

For many years, the primary proposition of GIFT IFSC was straightforward: tax efficiency. Lower withholding taxes, exemptions on capital gains, and GST concessions are powerful incentives, but they are not sufficient to build a globally recognised financial centre. True financial substance requires depth: a wide range of investable instruments, a sophisticated regulatory framework, a credible supervisory authority, and a track record of innovation.

IFSCA's 28th Authority Meeting is the latest chapter in the story of GIFT IFSC's transition from a preferential tax zone to a genuine financial hub. Each approval from the IIBX GIFT City framework to GIFT City registration simplifications to SPV aircraft leasing adds another layer to that substance. The result is a jurisdiction that is not only competitive on cost but increasingly competitive on capability.

Conclusion: Actionable Implications for Businesses and Investors

Whether you are a global airline exploring aircraft financing options, an NRI investor building a diversified portfolio through GIFT City NRI channels, an institution seeking Investment Advisory in GIFT City, or a business evaluating GIFT City incorporation and GIFT City registration the regulatory changes approved at IFSCA's 28th Authority Meeting create new and meaningful opportunities.

The frameworks approved Preferential Issue, QIP, Rights Issue, and SPV-based aircraft leasing are not theoretical constructs. They are actionable, compliant, and structured within a framework that IFSCA is actively developing and monitoring. GIFT IFSC is open for business, and the rules of engagement have just become significantly more favourable.

To understand how the latest IFSCA reforms could support capital raising, aircraft leasing, cross-border structuring, and global investment opportunities through GIFT IFSC, connect with CA Gaurav Kanudawala, Founder of GIFT CFO: +91 9726372715 | info@giftcfo.com

DISCLAIMER: This newsletter and article are published for informational and educational purposes only and do not constitute legal, financial, regulatory, or investment advisory advice. The content is based on publicly available information from the International Financial Services Centres Authority (IFSCA) and is intended to provide a general overview of recent regulatory developments at GIFT IFSC. Readers are advised to consult qualified legal, financial, or compliance professionals before making any investment, registration, or business decisions related to GIFT City, GIFT IFSC, Investment Advisory in GIFT City, IIBX GIFT City, GIFT City NRI services, GIFT City funds for NRI, or GIFT City incorporation. Past regulatory changes do not guarantee future outcomes. The author and publisher disclaim all liability for actions taken based on the information provided herein.