Govt Established International Financial Services Centre Authority

Govt Established International Financial Services Centre Authority

Govt Established International Financial Services Centre Authority

Why in News?

    • The Government of India established International Financial Services Centre Authority
    • This IFSCA headquartered in Gandhinagar, Gujarat.

What is International Financial services Centres Authority?

    • IFSCA consists of 9 members
    • These 9 members are appointed by the Government of India
    • The term of these members are of 3 years

Who are the members of IFSCA?

The members are

  1. Chairperson
  2. Two members from Ministry of Finance

one each from

  1. RBI
  2. SEBI
  3. IRDAI and
  4. PFRDA and

Two members based on the recommendation of search committee

What is International Financial Service Centre?
IFSC provides fund raising services to

    • Corporates
    • Individuals
    • 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
    • IFSCA reduces 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

What are the Notable Points regarding this?

  • The Authority established through a notification
  • The authority regulates financial markets in the International Financial Service Centres in India.

What are the main function of the authority?

    • This 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.

Source: ET

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