IFSC Authority Established at Gandhinagar

The government has established the International Financial Services Centres Authority with its headquarters in Gandhinagar, Gujarat to regulate all financial services.

About IFSC Authority

The IFSC Authority was established by a notification recently, with its headquarters in Gandhinagar, Gujarat. Financial services which are being regulated by multiple bodies- RBI, IRDAI and SEBI- will be regulated by the IFSC Authority. It was set up in accordance with the IFSC Act, 2019.

Functions

IFSCA will regulate financial products like securities, deposits or contracts of insurance, financial services, and financial institutions. Currently, only certain powers have been given to the authority- appointment of its members and other employees, setting up of funds and exemption from taxes. Other powers are yet to be vested with the authority: regulation of financial products, financial services and financial institutions in IFSCs and its abilities to transact in foreign currencies and make rules.

IFSC Act

The IFSC Act, 2019 provides for the setting up of a unified authority to regulate all financial services in the country. It combines the power of RBI, SEBI, IRDAI and PFRDA with respect to IFSCs. The authority will comprise of a chairperson, 2 members from the centre, a member each from the other regulators and other full and part-time members- according to the act.