INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY

Description

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Context - A Comprehensive Regulatory framework for the Investment Funds has been announced by the International Financial Services Centres Authority (IFSCA).

Key Features of the Regulatory Framework

Mandatory for a Fund Management Entity to get registered with IFSCA.
- Fund Management Entity manages different types of funds and schemes
Venture Capital Schemes or non-retail schemes will qualify for a green channel.
- Under the Green Channel, the Schemes filed can open for subscription by investors immediately upon filing with IFSCA.
A framework has been prescribed for special situation funds to manage stressed assets.
Environment Social Governance issues need to be an integral part of their investment strategies.
Facilitate a self-managed investment fund of a family office has been provided in the regulations.
- Family office for managing and preserving the wealth of the High Net worth Individuals (HNIs) and their families
Provision for ‘Fund Lab’, fund managers may try new techniques in a controlled manner and build a track record for their fund.
It proposed to facilitate retail close-ended schemes to invest in unlisted securities under certain conditions.
The regulations highlighted the role of various entities, prescribed code of conduct, advertisement code, investment valuation norms and important governance requirements.

International Financial Services Centre

The International Financial Services Centre was established at the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar.
The main objective of the International Financial Services Centre is to encourage financial services and transactions in India.
It promotes business and regulatory environments like other international financial centres in London and Singapore.
It ensures that Indian corporate get easier access to global financial markets.

International Financial Services Centres Authority

It was established in 2020 as a statutory authority under the International Financial Services Centres Authority Act, 2019
The Ministry of Finance has established International Financial Services Centres Authority to regulate all types of financial services in the International Financial Services Centres (IFSCs) in Gandhinagar (Gujarat).
The main objective of the authority is to regulate financial products Such as Securities, deposits, insurance, financial services, and financial institutions In the International Financial Services Centres (IFSCs).
The International Financial Services Centres Authority consist of 9 members, that are appointed by the central government:
- The Chairperson of the authority.
- One member from the RBI, SEBI, the Insurance Regulatory and Development Authority of India (IRDAI), and the Pension Fund Regulatory and Development Authority (PFRDA).
- 2 members from the Ministry of Finance.
- 2 other members are appointed on the recommendation of a Selection Committee.
All members have a term of 3 years, and they can be reappointed.