The Expert Committee on developing the Gujarat International Finance Tech-City International Financial Services Centre (GIFT IFSC) as ‘Global Finance and Accounting Hub’ has submitted its report to the Chairperson, the International Financial Services Centre Authority (IFSCA), the authority said on Thursday.

It has recommended a comprehensive regulatory regime for undertaking bookkeeping, accounting, taxation and financial crime compliance services from IFSC in India.

Additionally, the committee has also made several recommendations for the promotion and development of GIFT IFSC as a ‘Global Finance and Accounting Hub’, including measures for enhancing the skills and competencies of the workforce.

As a primary safeguard, the committee recommends that entities set up in IFSC to carry out bookkeeping, accounting, taxation, and financial crime compliance services should only be in the form of a company or a limited liability partnership (LLP).

A branch of an Indian company or LLP may be permitted only if the entity is regulated by any of the three professional bodies — ICAI, ICSI or ICMAI. Any other entity established overseas may also be permitted to set up a branch in IFSC only if it doesn’t have any presence in India.

Further, it said that new companies or LLPs that intend to provide services beyond bookkeeping, accounting, taxation services and financial crime compliance services can obtain additional registrations/authorisation under other regulations/frameworks, respectively.

IFSCA should provide clear and objective conditions/criteria for setting up business operations in GIFT IFSC to undertake the notified financial services. These criteria are designed to ensure that new businesses are not created merely by splitting up, reconstructing, or reorganising existing businesses in India.

The committee suggests that the IFSCA should prescribe that the unit in IFSC should have a principal officer and a compliance officer.

It proposes long-term strategies for education and skill acquisition and emphasises the need for continuous training and development programmes for the workforce.

Notably, the Expert Committee was constituted pursuant to the notification issued by the Ministry of Finance in January.

It was chaired by the President of ICAI, and comprised of experts from the industry, academia and the government.