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