The Securities and Exchange Board of India (SEBI) is set to ease rules for merchant bankers looking to set up presence in the International Financial Services Center (IFSC) of GIFT City. According to sources, the regulator plans to waive some approval requirements to ease their way into the emerging financial hub.
SEBI may scrap the rule under which it is mandatory for domestic investment banks to obtain no objection certificate (NOC) for opening a branch in GIFT IFSC. According to sources, the market regulator is likely to soon issue a notification in this regard which will include details of the revised registration process and guidelines.
An official aware of the development said, ‘To start business in GIFT City, a merchant banker requires NOC from SEBI. Till now only four units are registered there. We believe the possible relaxations from the market regulator will help in expanding the base, especially at a time when GIFT City is preparing for new listings.
Sources indicated that SEBI and the IFSC regulator have held successful talks to ease the registration process of merchant bankers. Another official said, ‘We are waiting for the conclusive notification. This will make the process to be followed clear and will help merchant bankers to explore options here. Email messages sent to SEBI and IFSCA in this regard did not receive any response.