International Financial Services Centres Authority

The International Financial Services Centres Authority (IFSCA) is the regulatory body for the Indian special economic zones such as the GIFT International Financial Services Centre for International Financial Services and commodity markets under the ownership of the Government of India.[3] It was established in 2020, under the International Financial Services Centres Authority Act, 2019. The International Financial Services Centre (IFSC) is located in Gujarat International Finance Tec-City (GIFT City).[4]

International Financial Services Centres Authority
Logo of IFSCA
Agency overview
FormedApril 27, 2020 (2020-04-27) (Established)
(under the International Financial Services Centres Authority Act, 2019)
TypeRegulatory agency
JurisdictionGIFT International Financial Services Centre
HeadquartersGIFT City, Gujarat
Employees200
Agency executive
Parent departmentGovernment of India
Child agency
Websiteifsca.gov.in
Footnotes
[1][2]

History

Developments that led to the IFSCA

In December 2015 the first International Financial Services Centre (IFSC) in India was set up in Gujarat International Finance Tec-City (GIFT City).[5]

In 2019 the Government of India enacted an Act of Parliament called the International Financial Services Centres Authority Act, 2019.[6][7][5]

Establishment

On April 27, 2020, The IFSCA was established as a statutory body under the International Financial Services Centres Authority Act, 2019.[8] On April 27, 2020, inauguration of the IFSCA by the Finance Minister of India, Nirmala Sitharaman.[7]

On May 27, 2020, the IFSCA released its first set of regulations, namely the IFSCA (Banking) Regulations, 2020.[9][6]

Developments

On June 17, 2020, the IFSCA signed an MoU with the Monetary Authority of Singapore (MAS) to strengthen cooperation in financial services between India and Singapore.[10][11][12][13]

On July 1, 2020, the IFSCA announced the launch of its regulatory sandbox framework for testing innovative financial products, services, and business models.[14][15][16][17]

On September 1, 2020, the IFSCA issued the IFSCA (Insurance) Regulations, 2020, for regulating the insurance sector in the IFSC.[18]

On December 7, 2020, the IFSCA signed an MoU with the Abu Dhabi Global Market (ADGM) to promote and develop the financial services industry in their respective jurisdictions.[19][20]

On February 17, 2021, the IFSCA issued the IFSCA (Capital Market Intermediaries) Regulations, 2021, for regulating capital market intermediaries in the IFSC.[21][22] On March 16, 2021, the IFSCA issued the IFSCA (Investment Advisors) Regulations, 2021, for regulating investment advisors in the IFSCA.[23]

Organisation structure

The International Financial Services Centres Authority (IFSCA) is headed by a chairperson who is appointed by the Government of India. The chairperson is assisted by a full-time Member (Finance) and such number of other Members as may be appointed by the Central Government.[24]

Source:[25]
Chairperson K. Rajaraman
Department Head of Department Divisions
Banking Kumar Raghuraman Banking Regulations -1, Banking Regulations -2, Banking Supervision, Finance Company Regulations
Capital Markets Corporate Finance – Equity, Hybrid and related products, Corporate Finance – Debt and Sustainable Finance, Market Infrastructure Institutions – Regulation and Supervision, Investment Funds - I and New Products & Services, Investment Funds - II and Aircraft Leasing
Insurance Praveen Trivedi Insurance
Metals and Commodities Kamlesh Sharma Strategic Research and Co-ordination for Market Development & Regulation, Regulatory Policy, Risk Management, and Supervision, Product Regulation, Vault Managers and Co-ordination
Development Supriyo Bhattacharjee Development of Financial Market – I, Development of Financial Market – II & International Affairs
Economic Policy and Analysis Economic Policy and Analysis
General Administration Praveen Trivedi Administration & HR, Treasury, Finance and Accounts
IT and Fintech Joseph Joshy C J IT, Fintech
Legal Policy and Legal Affairs Praveen Trivedi Legal Policy, Legal Affairs
Regulatory Policy and Regulatory Affairs Prasanna Seshchellam Regulatory Cooperation, Risk Based Supervision, SupTech, FATF Cell

Subsidiary

The International Financial Services Centres Authority (IFSCA) has several child agencies or subsidiary bodies that help it carry out its functions. Some of these agencies are:[26][27]

  1. International Financial Services Centres Authority Advisory Committee (IFSCA-AC) - This committee advises the IFSCA on various issues related to the development and regulation of financial services in IFSCs.[28]
  2. International Financial Services Centres Authority Committee on Fund Administration (IFSCA-CFA) - This committee regulates and oversees the functioning of fund administration services in IFSCs.[29][30]
  3. International Financial Services Centres Authority Committee on Depository Receipts (IFSCA-CDR) - This committee regulates and oversees the issuance and trading of depository receipts in IFSCs.[31][32]
  4. International Financial Services Centres Authority Committee on Market Infrastructure Institutions (IFSCA-CMII) - This committee regulates and oversees the functioning of market infrastructure institutions like stock exchanges, clearing corporations, and depositories in IFSCs.[33][34]
  5. International Financial Services Centres Authority Committee on Financial Benchmarks (IFSCA-CFB) - This committee regulates and oversees the functioning of financial benchmarks in IFSCs.[35]
  6. International Financial Services Centres Authority Committee on Investment Advisers (IFSCA-CIA) - This committee regulates and oversees the functioning of investment advisers in IFSCs.[36][37][38]
  7. International Financial Services Centres Authority Committee on Commodity Derivatives Markets (IFSCA-CCDM) - This committee regulates and oversees the functioning of commodity derivatives markets in IFSCs.[39]
  8. International Financial Services Centres Authority Committee on Regulatory Sandbox (IFSCA-CRS) - This committee facilitates the testing and experimentation of innovative financial products, services, and technologies in a controlled environment in IFSCs.[40][41]
  9. International Financial Services Centres Authority Committee on Financial Services (IFSCA-CFS) - This committee regulates and oversees the functioning of all financial services in IFSCs.[42]
  10. International Financial Services Centres Authority Committee on Regulation of Depositories (IFSCA-CRD) - This committee regulates and oversees the functioning of depositories in IFSCs.[43]
  11. International Financial Services Centres Authority Committee on Accounting Standards (IFSCA-CAS) - This committee regulates and oversees the adoption of accounting standards in IFSCs.[44][45]
  12. International Financial Services Centres Authority Committee on Cyber Security (IFSCA-CCS) - This committee regulates and oversees the cyber security and data protection measures taken by entities in IFSCs.[46]
  13. International Financial Services Centres Authority Committee on Money Market and Foreign Exchange Markets (IFSCA-CMFM) - This committee regulates and oversees the functioning of money market and foreign exchange markets in IFSCs.[47]
  14. International Financial Services Centres Authority Committee on Governance and Ethics (IFSCA-CGE) - This committee promotes good governance and ethical practices in entities operating in IFSCs.[48]
  15. International Financial Services Centres Authority Committee on Risk Management (IFSCA-CRM) - This committee regulates and oversees the risk management practices adopted by entities in IFSCs.[49]
  16. International Financial Services Centres Authority Committee on Insurance (IFSCA-CI) - This committee regulates and oversees the functioning of insurance services in IFSCs.[50]
  17. International Financial Services Centres Authority Committee on Retail Business Development (IFSCA-CRBD) - To develop international retail business along with potential strategies for making IFSC attractive for international financial services .[51][52][53][54]

Functions and responsibilities

The International Financial Services Centres Authority (IFSCA) has been established to regulate and develop financial services in the International Financial Services Centres (IFSCs) located in India. Here are the key functions and responsibilities of IFSCA:

  • Regulatory and development functions: The IFSCA is responsible for regulating financial services and products offered in the IFSCs, including banking, insurance, securities markets, and other financial products and services. It is also responsible for promoting and developing the IFSCs in India.[9][55]
  • Granting of approvals and permissions: The IFSCA has the power to grant approvals and permissions to entities operating in the IFSCs, including financial institutions, intermediaries, and other service providers.[56]
  • Promoting International Financial Services Centre: The IFSCA is responsible for promoting IFSCs and developing them into world-class financial centers. It has the power to enter into MoUs with other regulatory bodies, financial institutions, and governments of foreign countries to promote financial services in IFSCs.[57][58][59][60]
  • Framing of regulations and rules: The IFSCA has the power to frame regulations and rules for the conduct of financial services and products in the IFSCs. It can also make recommendations to the Central Government on matters related to the regulation and development of financial services in the IFSCs.[61][62][15]
  • Regulating Capital Markets: The IFSCA regulates capital markets in IFSCs and has the power to issue regulations, guidelines, and directions for entities operating in these markets.[63][15]
  • Regulating Banking Services: The IFSCA regulates banking services in IFSCs and has the power to issue regulations, guidelines, and directions for entities operating in these services.[15]
  • Regulating Insurance Services: The IFSCA regulates insurance services in IFSCs and has the power to issue regulations, guidelines, and directions for entities operating in these services.[15]
  • Monitoring and surveillance: The IFSCA is responsible for monitoring and conducting surveillance of the financial services and products offered in the IFSCs to ensure compliance with regulations and rules.
  • Dispute resolution: The IFSCA has the power to resolve disputes arising out of financial transactions in the IFSCs, including between parties located in the IFSCs and parties located outside the IFSCs.[64][65][66]
  • International cooperation: The IFSCA can enter into agreements with other regulatory bodies and organizations outside India to promote and develop the financial services industry in the IFSCs and to enhance international cooperation in this regard.

Departments

The International Financial Services Centres Authority (IFSCA) is a regulatory authority established by the Government of India to develop and regulate the financial services market. The IFSCA has several departments to oversee different areas of financial services.[67][24]

See also

References
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