International Financial Services Centres Authority

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International Financial Services Centres Authority
IFSCA.svg
Logo of IFSCA
Agency overview
FormedApril 27, 2020;4 years ago (2020-04-27) (Established)
(under the International Financial Services Centres Authority Act, 2019)
Type Regulatory agency
Jurisdiction GIFT International Financial Services Centre
Headquarters GIFT City, Gujarat
Employees200
Agency executive
Parent department Government of India
Child agency
Website ifsca.gov.in
Footnotes
[1] [2]

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]

Contents

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
DepartmentHead of DepartmentDivisions
Banking Kumar RaghuramanBanking Regulations -1, Banking Regulations -2, Banking Supervision, Finance Company Regulations
Capital Markets Pradeep RamakrishnanCorporate 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 TrivediInsurance
Metals and Commodities Pradeep RamakrishnanStrategic Research and Co-ordination for Market Development & Regulation, Regulatory Policy, Risk Management, and Supervision, Product Regulation, Vault Managers and Co-ordination
DevelopmentDipesh ShahDevelopment of Financial Market – I, Development of Financial Market – II & International Affairs
Economic Policy and Analysis Economic Policy and Analysis
General AdministrationPraveen TrivediAdministration & HR, Treasury, Finance and Accounts
IT and Fintech Joseph Joshy C JIT, Fintech
Legal Policy and Legal AffairsPraveen TrivediLegal Policy, Legal Affairs
Regulatory Policy and Regulatory Affairs Prasanna SeshchellamRegulatory 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]
  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. [38]
  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. [39] [40]
  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. [41]
  10. International Financial Services Centres Authority Committee on Regulation of Depositories (IFSCA-CRD) - This committee regulates and oversees the functioning of depositories in IFSCs. [42]
  11. International Financial Services Centres Authority Committee on Accounting Standards (IFSCA-CAS) - This committee regulates and oversees the adoption of accounting standards in IFSCs. [43] [44]
  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. [45]
  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. [46]
  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. [47]
  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. [48]
  16. International Financial Services Centres Authority Committee on Insurance (IFSCA-CI) - This committee regulates and oversees the functioning of insurance services in IFSCs. [49]
  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 . [50] [51] [52]

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:

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. [60] [24]

Awards and recognition

International Financial Services Centres Authority (IFSCA) was recognised with the “Outstanding New Asian Regulatory and Technological Innovation in Financial Services” at the ‘Asian Digital Finance Forum and Awards 2023’ which was held at Hilton Colombo in Sri Lanka. [61]

See also

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References

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  7. 1 2 "The International Financial Services Centres Authority Bill, 2019". PRS Legislative Research. Archived from the original on 5 April 2023. Retrieved 5 April 2023.
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  24. 1 2 "IFSCA Divisions". IFSCA. Archived from the original on 5 April 2023. Retrieved 5 April 2023.
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  32. ↑ "Framework for listing of Depository Receipts in GIFT IFSC" (PDF). IFSCA. Archived (PDF) from the original on 3 August 2022. Retrieved 5 April 2023.
  33. ↑ "International Financial Services Centres Authority Committee on Market Infrastructure Institutions (IFSCA-CMII)".
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  35. ↑ "International Financial Services Centres Authority Committee on Financial Benchmarks (IFSCA-CFB)".
  36. ↑ "International Financial Services Centres Authority Committee on Investment Advisers (IFSCA-CIA)".
  37. ↑ "Constitution of an Expert Committee on Investment Funds". pib.gov.in. Archived from the original on 20 July 2023. Retrieved 5 April 2023.
  38. ↑ "International Financial Services Centres Authority Committee on Commodity Derivatives Markets (IFSCA-CCDM)".
  39. ↑ "International Financial Services Centres Authority Committee on Regulatory Sandbox (IFSCA-CRS)".
  40. ↑ Anand, Saurav (5 October 2022). "Sustainable finance panel moots promoting regulatory sandbox for green fintech". www.livemint.com. Archived from the original on 5 April 2023. Retrieved 5 April 2023.
  41. ↑ "International Financial Services Centres Authority Committee on Financial Services (IFSCA-CFS)".
  42. ↑ "International Financial Services Centres Authority Committee on Regulation of Depositories (IFSCA-CRD)".
  43. ↑ "International Financial Services Centres Authority Committee on Accounting Standards (IFSCA-CAS)".
  44. ↑ "ifsca Committee on Accounting Standards" (PDF). IFSCA. Archived (PDF) from the original on 5 April 2023. Retrieved 5 April 2023.
  45. ↑ "International Financial Services Centres Authority Committee on Cyber Security (IFSCA-CCS)".
  46. ↑ "International Financial Services Centres Authority Committee on Money Market and Foreign Exchange Markets (IFSCA-CMFM)".
  47. ↑ "International Financial Services Centres Authority Committee on Governance and Ethics (IFSCA-CGE)".
  48. ↑ "International Financial Services Centres Authority Committee on Risk Management (IFSCA-CRM)".
  49. ↑ "International Financial Services Centres Authority Committee on Insurance (IFSCA-CI)".
  50. ↑ Upadhyay, Jayshree P. (3 August 2020). "IFSCA sets up committee for international retail business development". www.livemint.com. Archived from the original on 5 April 2023. Retrieved 5 April 2023.
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  61. ↑ "AFTA hosts 'Asian Digital Finance Forum and Awards 2023'". Daily FT . 28 March 2023. Retrieved 27 November 2024.
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