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CS Professional · IFSCA - Regulations, Listing and Compliances · Insurance and Reinsurance

Himalaya Insurance Ltd, a domestic insurer, wants to start insurance operations in GIFT IFSC. Under the IFSCA framework, which route is correct for carrying on such business?

The insurer must register with IFSCA to set up an IFSC Insurance Office, which can operate as a branch in the IFSC. Its domestic IRDAI licence does not automatically cover IFSC business, because the IFSC is regulated under a separate framework by IFSCA.

  1. AIt may start immediately because its IRDAI licence automatically covers IFSC business
  2. BIt must obtain registration from IFSCA, and may operate in the IFSC through a branch (IFSC Insurance Office) as permittedCorrect
  3. CIt must obtain a banking licence from RBI first
  4. DIt needs only an SEBI broker registration

Explanation

IFSCA registers IFSC Insurance Offices, which may be set up by Indian or foreign insurers, typically as branches. A domestic IRDAI licence does not automatically extend to the IFSC, so the first option is wrong.

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