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CS Professional · IFSCA - Regulations, Listing and Compliances · Banking Services and Finance Companies in IFSC

Aarav Fintech Pvt Ltd, a Mumbai company, wants to offer cross-border payment services to non-resident customers from GIFT City. It will set up a unit in the IFSC. Which authority regulates the unit's financial services activity in the IFSC?

The International Financial Services Centres Authority regulates the unit. It is the unified regulator for financial products, services and institutions in IFSCs under the IFSCA Act, 2019, so the unit does not look to RBI, SEBI or IRDAI separately for these activities.

  1. AReserve Bank of India alone for all IFSC activity
  2. BInternational Financial Services Centres AuthorityCorrect
  3. CSecurities and Exchange Board of India alone
  4. DInsurance Regulatory and Development Authority of India alone

Explanation

IFSCA is the unified regulator for financial products, services and institutions in IFSCs, established under the IFSCA Act, 2019. Other regulators' powers over IFSC financial services were transferred to it, so the other options are incorrect.

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