Bill introduced in Lok Sabha for unified authority in International Financial Services Centres

A bill was introduced in Lok Sabha on Monday for establishing a unified authority for regulating and developing financial services market in International Financial Services Centres (IFSCs).

A bill was introduced in Lok Sabha on Monday for establishing a unified authority for regulating and developing financial services market in International Financial Services Centres (IFSCs). The International Financial Services Centres Authority Bill, 2019, was introduced in Lok Sabha by Union Finance Minister Nirmala Sitharaman.

The Union Cabinet had last week approved the withdrawal of the bill from Rajya Sabha and its introduction in Lok Sabha as it is a "money bill". The statement of objects and reasons of the bill says that the banking, capital markets and insurance sectors in IFSCs are regulated by multiple regulators such as RBI, SEBI, and IRDAI but the dynamic nature of business in the IFSCs necessitates a high degree of inter-regulatory coordination.

It states development of financial services and products in IFSCs would require focused and dedicated regulatory interventions and a need was felt for having a unified financial regulator for IFSCs in India to provide a world-class regulatory environment to financial market participants. The Special Economic Zones Act 2005 provides that the central government may approve the setting up of an International Financial Services Centre in an SEZ and prescribe the requirements for setting up and operate such a Centre. (ANI)

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