Union Cabinet to set up an unified authority for regulating all financial services in IFSC

The Union Cabinet has recently approved establishment of a unified authority for regulating all financial services in International Financial Services Centres (IFSCs) in India through IFSCs Authority Bill of 2019. The establishment of a unified financial regulator for IFSCs will result in providing world-class regulatory environment to market participants from an ease of doing business perspective. This will provide a stimulus for further development of IFSCs in India. Currently, the banking, capital markets and insurance sectors in IFSC are regulated by multiple regulators — the RBI, SEBI and IRDAI, respectively. An IFSC caters to customers outside the jurisdiction of the domestic economy. Such centres deal with flows of finance, financial products and services across borders. It provides business and regulatory environment that is comparable to other leading international financial centres in the world like London and Singapore. IFSC provides Indian companies easier access to global financial markets. The first IFSC in India was set up at GIFT City in Gandhinagar, Gujarat.