Topic 2: PERFECTING THE ‘IFSCA’

As new investment avenues are originated, so the need for a supervisory regulatory body arises. With the birth of IFSC in GIFT City, the IFSCA was established. The International Financial Services Centres Authority (IFSCA) is a regulatory body established by the Government of India on April 27, 2020, under the International Financial Services Centres Authority Act, 2019. It is headquartered in GIFT City, Gandhinagar, Gujarat, and serves as the unified authority for the development and regulation of financial products, services, and institutions within India’s International Financial Services Centres (IFSCs). The primary objectives of the IFSCA include promoting ease of doing business, providing a world-class regulatory environment, and enhancing global connectivity while addressing the needs of the Indian economy. The establishment of the IFSCA marks a shift from the previous regulatory structure, where multiple domestic regulators like the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and others governed the operations of IFSCs. The IFSCA plays a crucial role in positioning India as a competitive player in the global financial services market, facilitating international investments, and providing a platform for financial transactions that cater to both domestic and international clients. Its unified approach aims to streamline regulatory processes and foster a conducive environment for financial innovation and growth within the IFSCs. With the evolving financial world, some amendments to the International Financial Services Centres Authority (IFSCA) regulations, effective from July 10, 2023, introduce several key changes compared to the earlier regulations established in 2020.

The amendments to the IFSCA regulations significantly bolster the operational framework for GIFT IFSC, making it more attractive for international financial institutions and investors. By streamlining processes, expanding permissible activities, and enhancing regulatory clarity, these changes are poised to strengthen GIFT IFSC's position as a leading international financial hub



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