SEZ stands for Special Economic Zone. In India, SEZs are specially designated areas created under the Special Economic Zones Act, 2005 to promote exports and offer businesses various tax benefits and incentives.The International Financial Services Centres Authority (IFSCA) is a government body set up by an Act of Parliament to develop and regulate financial services in India’s IFSCs.As per Section 18 of the SEZ Act, an International Financial Services Centre (IFSC) can only be established inside an SEZ. GIFT-IFSC in Gujarat is the first such IFSC in India.Because of this, any company or entity that gets approval or registration from IFSCA to operate in an IFSC automatically becomes an SEZ unit too. It must therefore follow both the IFSCA rules and the SEZ Act and Rules.