Govt to set-up a Unified Authority for Regulating Entities in IFSC

The Union Cabinet approved a Bill to set up a unified authority for regulating all financial services in international financial services centers (IFSCs) in the country. An IFSC enables to bring back to India the financial services and transactions that are currently carried out in offshore financial centers by Indian corporate entities and overseas branches or subsidiaries of financial institutions (FIs). It provides business and regulatory environment that is comparable to other leading international financial centers in the world like London and Singapore.

Key Highlights 

  • IFSCs is set-up to bring back the financial services and transactions that are currently carried out in offshore financial centers by Indian corporate entities and overseas branches or subsidiaries of financial institutions (FIs) to India.
  • The business and regulatory environment must be comparable to other leading international financial centers in the world like London and Singapore. Currently, the banking, capital markets and insurance sectors in IFSCs are regulated by multiple regulators like the RBI, SEBI, and IRDAI respectively.
  • For IFSCs to attain its objectives there is a need for inter-regulatory coordination. The establishment of a unified financial regulator for IFSCs will result in providing a world-class regulatory environment to market participants from the ease of doing business perspective.