The clarification was published as part of the regulator’s Frequently Asked Questions (FAQs) on the Anti-Money Laundering, Counter-Terrorist Financing and Know Your Customer (AML/CFT/KYC) Guidelines, 2022.
It permits regulated entities operating in GIFT City to accept digitally notarised documents for investor onboarding.
The move is expected to simplify onboarding procedures for non-resident Indians (NRIs), overseas citizens of India (OCIs), and foreign nationals investing through GIFT City.
Previously, investors were often required to obtain physical notarisation or attestation of documents through local notaries or Indian embassies, followed by international couriering of paperwork.
Industry participants have said the process could take several weeks and contributed to high drop-off rates during onboarding.
The clarification follows consultations between IFSCA officials and industry stakeholders, who raised concerns regarding onboarding challenges faced by overseas investors.
Dharmendra Maurya, Co-Founder and CEO of Rupeeflo, a fintech platform, said the company’s experience serving investors across more than 50 countries had provided insight into practical challenges in cross-border investing, particularly during onboarding.
He said regulatory clarity could help reduce friction for overseas investors entering GIFT City and improve participation in IFSC-based financial products.
Maurya also said the clarification could improve GIFT City’s competitiveness relative to other international financial centres by reducing onboarding hurdles for global investors. According to him, the change may create wider opportunities for banks, brokers, and fund houses operating in the IFSC to access overseas investors.
Industry observers say the clarification could help reduce onboarding timelines and improve ease of access for international investors seeking exposure to Indian financial markets through GIFT City.
