The Union Cabinet on 06 February 2019 approved the establishment of a unified authority for regulating all financial services in International Financial Services Centres (IFSCs) in India through the International Financial Services Centres Authority Bill, 2019.
The nature of business in the IFSCs requires a high degree of inter-regulatory coordination and regular clarifications in the existing regulations governing financial activities in IFSCs. At present, the banking, capital markets and insurance sectors in IFSC are regulated by multiple regulators such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and Insurance Regulatory and Development Authority of India (IRDAI).
An IFSC helps bring back the financial services and transactions that are currently carried out in offshore financial centers by Indian corporate entities and overseas branches of financial institutions to India by offering business and regulatory environment.
The center works on similar lines as that of other leading international financial centers in the world like London and Singapore. IFSC also compliments and promotes further development of financial markets in India. It provides Indian corporates easier access to global financial markets.