The government is amending Companies Act to relax provisions for Gujarat Gift City’s international finance centre.

The amendments will relax compliance norms. The amendment bill is expected to be introduced in the ongoing Parliament session.

Companies operating in Gift IFSC set up by Indians will not be considered foreign companies but these will be provided several operational freedoms. These companies will have flexibility in formation of their boards and on independent directors.

Companies in Gift IFSC will be private limited companies or unlisted public limited companies and the new provisions will have a set of relaxations for them, according to a source.

A law expert said companies in Dubai’s international finance centre operated under a separate law to help them make globally competitive. “India is still conservative, the tax holiday is shorter and there are hardly any waivers proposed,” he added.

Banks have already started operating from Gift IFSC and brokers are setting up shop. Stock and commodity exchanges are in the company-formation stage and are waiting for clarifications about changes in the law.