International Financial Services Centre Authority established by GoI

The Government of India has established International Financial Services Centre Authority. The headquarters of the authority is to be established in Gandhinagar, Gujarat.

Highlights

The Authority was established through a notification. The notification issued by the GoI brings into effect certain effects of IFSCA Act, 2019. The authority will regulate financial markets in the International Financial Service Centres in India. The main function of the authority is to regulate financial products such as contracts of insurance, deposits, securities of the financial institutions that have been approved by regulators. The regulators include RBI, SEBI, Pension Fund Regulatory and Development Authority, IRDAI.

International Financial services Centres Authority

The authority consists of 9 members that are appointed by the Government of India. The members are to have a term of three years. The members include Chairperson, two members from Ministry of Finance, one each from RBI, SEBI, IRDAI and PFRDA and two members based on the recommendation of search committee

International Financial Service Centre

The IFSC will provide fund raising services to corporates, individuals and governments. It will also look into global tax management, wealth management, merger, risk management operations, etc.

The IFSCA will act as a unified authority to the IFSCs in India. This will reduce the burden of other multiple regulators such as SEBI, RBI and IRDAI. This is because all the insurance, capital markets are currently being regulated by them.

Month: Current Affairs - April, 2020