New Delhi sources stated that the government on Tuesday introduced a Bill to set up a unified authority for regulating all financial services in international financial services centers (IFSCs) in the country. Meanwhile the International Financial Services Center Authority Bill, 2019 mandates the transaction of financial services in the IFCS shall be governed by an Authority headed by a Chairman.
Accordingly the bill has a provision for establishment and incorporation of the Authority. Regulatory bodies including RBI, SEBI, IRDA, and PFRDI would have one nominee as its member, while the Finance Ministry will have rights to nominate two officials in the Authority. The bill said “It will be "regulating the financial products, financial services and financial institutions in an IFSC”.
Moreover the bill said "The Chairperson and a member shall hold offices for a term of three year from the date on which he enters upon his office and shall be eligible for reappointment”. Furthermore an IFSC enables to bring back to India the financial services and transactions that are currently carried out in offshore financial centers by Indian corporate entities and overseas branches or subsidiaries of financial institutions (FIs).
