International Financial Services Centres Authority

News:Government of India has notified the establishment of International Financial Services Centres Authority(IFSCA).

Facts:

• IFSCA was established to regulate the financial services market in the International Financial Services Centres set up under the Special Economic Zones Act, 2005.
• Composition:It consists of nine members: a) Chairperson b) members each from the RBI, SEBI, IRDAI, PFRDA c) two members from the Ministry of Finance and d) two other members appointed on the recommendation of a Search Committee.
• Tenure: The members will have a term of three years subject to reappointment. 
• Functions: It will regulate financial products such as securities, deposits or contracts of insurance, financial services and financial institutions which have been approved by an appropriate regulator in an IFSC. 
• Powers: All powers exercisable by the respective financial sector regulatory (RBI, SEBI, IRDAI, and PFRDA) under the respective Acts can be exercised by the Authority in the IFSCs.

Additional Facts:

International Financial Services Centres(IFSC):

• 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.
• GIFT (Gujarat International Finance Tec-City) located in Gandhinagar is India’s first International Financial Services Centre.