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]
Corporate 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
Strategic Research and Co-ordination for Market Development & Regulation, Regulatory Policy, Risk Management, and Supervision, Product Regulation, Vault Managers and Co-ordination
Development
Dipesh Shah
Development of Financial Market – I, Development of Financial Market – II & International Affairs
Regulatory 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]
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]
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]
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]
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]
International Financial Services Centres Authority Committee on Financial Benchmarks (IFSCA-CFB) - This committee regulates and oversees the functioning of financial benchmarks in IFSCs.[35]
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]
International Financial Services Centres Authority Committee on Commodity Derivatives Markets (IFSCA-CCDM) - This committee regulates and oversees the functioning of commodityderivatives markets in IFSCs.[38]
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]
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]
International Financial Services Centres Authority Committee on Regulation of Depositories (IFSCA-CRD) - This committee regulates and oversees the functioning of depositories in IFSCs.[42]
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]
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]
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]
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]
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]
International Financial Services Centres Authority Committee on Insurance (IFSCA-CI) - This committee regulates and oversees the functioning of insurance services in IFSCs.[49]
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:
Regulatory and development functions: The IFSCA is responsible for regulating financial services and products offered in the IFSCs, including banking, insurance, securities markets, and other financial products and services. It is also responsible for promoting and developing the IFSCs in India.[9]
Granting of approvals and permissions: The IFSCA has the power to grant approvals and permissions to entities operating in the IFSCs, including financial institutions, intermediaries, and other service providers.[53]
Framing of regulations and rules: The IFSCA has the power to frame regulations and rules for the conduct of financial services and products in the IFSCs. It can also make recommendations to the Central Government on matters related to the regulation and development of financial services in the IFSCs.[54][55][15]
Regulating Capital Markets: The IFSCA regulates capital markets in IFSCs and has the power to issue regulations, guidelines, and directions for entities operating in these markets.[56][15]
Regulating Banking Services: The IFSCA regulates banking services in IFSCs and has the power to issue regulations, guidelines, and directions for entities operating in these services.[15]
Regulating Insurance Services: The IFSCA regulates insurance services in IFSCs and has the power to issue regulations, guidelines, and directions for entities operating in these services.[15]
Monitoring and surveillance: The IFSCA is responsible for monitoring and conducting surveillance of the financial services and products offered in the IFSCs to ensure compliance with regulations and rules.
Dispute resolution: The IFSCA has the power to resolve disputes arising out of financial transactions in the IFSCs, including between parties located in the IFSCs and parties located outside the IFSCs.[57][58][59]
International cooperation: The IFSCA can enter into agreements with other regulatory bodies and organizations outside India to promote and develop the financial services industry in the IFSCs and to enhance international cooperation in this regard.
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]