IFSCA invites applications from eligible entities to set up & operate the ITFS Platform by 15th Sept

The International Financial Services Centres Authority (IFSCA) has invited applications from eligible entities to set up and operate the International Trade Financing Services (ITFS) Platform by September 15, 2021.

The ITFS Platform will function from GIFT IFSC at GIFT City in Gandhinagar, Gujarat. The eligible entities can apply in the prescribed format along with supporting documents to the IFSCA by September 15, the regulator said in a statement on Tuesday. The IFSCA will then grant in-principle approval to operate in its regulatory sandbox environment for the said period, before allowing regular operations, it said.

IFSCA has been established as a unified regulator to develop financial products, financial services and financial institutions in the International Financial Services Centres (IFSCs) in India. Currently, GIFT IFSC is the only international financial services centre in India.

The ITFS would be an electronic platform for facilitating the trade, finance requirements of exporters and importers by providing access to multiple financiers. It will play an instrumental role in arranging credit for exporters and importers from global institutions at a competitive cost.

The platform is expected to be leveraged by exporters and importers across the world for availing trade finance services, making GIFT IFSC a preferred location for international trade financing

Prior to the establishment of IFSCA, domestic financial regulators such as RBI, Sebi, PFRDA and IRDAI regulated the business in IFSC.