CS Professional · IFSCA - Regulations, Listing and Compliances · International Financial Services Centres: An Introduction
A fintech lender in GIFT IFSC wants to know which body exercises the powers that the RBI, SEBI and IRDAI would otherwise exercise under their respective Acts over financial products, services and institutions in an International Financial Services Centre. Under the IFSCA Act, 2019, who exercises these powers?
The International Financial Services Centres Authority exercises them. Section 13(1) says that, notwithstanding other laws, powers of the appropriate regulators listed in the First Schedule are exercised by the Authority in the IFSC, as far as they relate to regulating financial products, services or institutions there.
- AThe International Financial Services Centres Authority, in so far as it relates to regulation of financial products, services or institutions in the IFSCCorrect
- BThe Reserve Bank of India, which delegates to SEBI and IRDAI inside the IFSC
- CThe Development Commissioner of the Special Economic Zone
- DThe Ministry of Finance, acting directly through its departments
Explanation
Section 13(1) provides that, notwithstanding any other law, the powers exercisable by the appropriate regulators specified in the First Schedule under the respective Acts are exercised in the IFSC by the Authority, to the extent they relate to regulation of financial products, services or institutions. The other bodies do not hold these powers inside the IFSC.
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