Khaitan & Co: Launches Comprehensive GIFT City Legal Guide

• Khaitan & Co launched its new report, "Inside GIFT City: Structure, Regulation and Opportunity," at a client event in Ahmedabad.
• The report offers a comprehensive overview of GIFT City's legal, regulatory, and tax frameworks, covering areas like fund management, aircraft leasing, and banking.
• It details key regulatory developments for 2025-26, including new fund governance rules and an IFSCA consultation on GPU and data-centre equipment leasing.
• New regulations prohibiting market abuse in IFSC securities markets and a framework for aircraft leasing SPVs are also highlighted within the guide.
• The launch underscores Khaitan & Co's commitment to Gujarat, where it has two offices, and the state's growing economic importance.

The report serves as a critical resource for understanding the intricate legal, regulatory, and tax landscape of GIFT City.

Khaitan & Co, a prominent full-service law firm, recently unveiled a comprehensive thought leadership report titled "Inside GIFT City: Structure, Regulation and Opportunity Building a Robust Offshore Centre Onshore." This significant publication was launched during a client event held in Ahmedabad, underscoring the firm's deepening engagement with Gujarat and India's International Financial Services Centre (IFSC). The report serves as a critical resource for understanding the intricate legal, regulatory, and tax landscape of GIFT City.

The launch of this guide reinforces Khaitan & Co's commitment to the region, following the establishment of its GIFT City office earlier this year. This new location marks the firm's second presence in Gujarat, complementing its existing Ahmedabad office. This expansion reflects a strategic focus on Gujarat, a state increasingly pivotal across various sectors including financial services, manufacturing, infrastructure, technology, and cross-border investment. The firm aims to cater to the sophisticated needs of Gujarat's established family businesses and its burgeoning community of entrepreneurs and investors, particularly concerning investment structures, succession planning, governance, and family wealth management.

The newly released guide offers a detailed examination of the legal, regulatory, and tax frameworks governing operations within GIFT City. It provides an extensive overview of various financial activities and business structures, making it an essential reference for professionals navigating this unique economic zone. The report delves into critical areas such as fund management, including insights into family investment funds, and covers the intricacies of banking and insurance operations within the IFSC.

Furthermore, the publication addresses global in-house centres, the burgeoning sector of aircraft leasing, and regulations pertaining to overseas investment. It also explores bullion operations, the processes for securities listings, and the specific taxation policies applicable within GIFT City. This broad scope ensures that the Khaitan & Co GIFT City legal guide offers a holistic perspective on the diverse opportunities and compliance requirements present in the region.

A significant portion of the report is dedicated to recent and anticipated regulatory developments impacting GIFT City, specifically highlighting key changes from 2025-26. Among these are new fund governance rules, which introduce a prohibition preventing scheme fiduciaries from simultaneously providing administration, valuation, audit, or lending services to the same scheme. This aims to enhance transparency and prevent conflicts of interest within fund operations.

The guide also details a recent consultation by the International Financial Services Centres Authority (IFSCA) that proposed to classify the leasing of Graphics Processing Units (GPUs) and data-centre equipment as a financial product. This development could significantly broaden the scope of financial services offered within the IFSC. Additionally, the report outlines the establishment of a new regulatory framework specifically designed for special purpose vehicles involved in aircraft leasing and financing, streamlining operations in this growing sector. Crucially, it also covers new regulations aimed at prohibiting market abuse within IFSC securities markets, reinforcing the integrity and stability of the financial ecosystem.

Haigreve Khaitan, Managing Partner at Khaitan & Co, emphasized the firm's long-standing relationship with Gujarat, noting over two decades of client service. He highlighted that the new offices in Ahmedabad and GIFT City enable closer collaboration with clients as they contribute to the state's economic expansion. Khaitan described Gujarat as a "powerhouse of enterprise," consistently leading India's progress in infrastructure development, energy transition, manufacturing growth, and port-led initiatives.

The managing partner also pointed to Ahmedabad's upcoming role as host for the 2030 Commonwealth Games, anticipating a further boost to the region's economic momentum and global visibility. He articulated that GIFT City has successfully transitioned from an ambitious concept into a fully operational and rapidly expanding financial ecosystem. The firm's decision to establish an office there was a deliberate extension of its comprehensive service capabilities and a testament to its commitment to client proximity. The launch of this report further solidifies this commitment by consolidating the firm's expertise on the legal and regulatory shifts shaping GIFT City and the resulting opportunities for both Indian and international businesses.

Lawyers and compliance officers should review Khaitan & Co's comprehensive guide to understand the evolving legal, regulatory, and tax landscape of GIFT City. This resource is crucial for advising clients on investment structures, compliance requirements, and new business opportunities in areas like fund management, aircraft leasing, and financial services, particularly in light of recent regulatory developments such as new fund governance rules and market abuse prohibitions.

Source: Insights derived from recent industry publication.