IFSCA to review regulations every three years

The International Financial Services Centres Authority (IFSCA) will review its regulations every three years keeping in view their objectives and outcomes, said a gazette notification.

IFSCA was established in April last year under the International Financial Services Centres Authority Act, 2019. It is headquartered at GIFT City, Gandhinagar.

IFSCA is a unified authority for the development and regulation of financial products, financial services and financial institutions in the International Financial Services Centre (IFSC) in India. At present, GIFT IFSC is the maiden international financial services centre in India.

Prior to the establishment of IFSCA, the domestic financial regulators, namely, RBI, Sebi, PFRDA and IRDAI regulated the business in IFSC.

As per the notification dated July 6, the Authority ''shall review each regulation every three years'' unless a review is warranted earlier and amend or repeal any regulation, keeping in view, its objectives; outcome; and experience of its implementation, among others.'' The International Financial Services Centres Authority (Procedure for making Regulations) Regulations, 2021 have come into force.

As per the notified guidelines, IFSCA has also been authorised to make urgent regulations.

However, such regulations will automatically lapse after six months unless replaced by regulations made in accordance with the prescribed norms.

The notification further said for the purpose of making regulations, IFSCA, will upload draft of proposed regulations on its website and ordinarily allow at least 21 days for public to sumbit their comments.

''The Authority shall consider the public comments received and upload the same on its website along with a general statement of its response on the comments, not later than the date of notification of regulations,'' it said.

However, it said, if the Authority decides to approve regulations in a form substantially different from the proposed regulations other than changes made in consideration of comments received, it will repeat the process under this regulation.

The main objective of IFSCA is to develop a strong global connect and focus on the needs of the Indian economy as well as to serve as an international financial platform for the entire region and the global economy as a whole.