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

Kaveri Assurance, registered in GIFT IFSC, is asked by the Chairman whether IFSCA's powers are limited to registration. Which of the following reflects the IFSCA Act, 2019 correctly?

IFSCA has regulatory and developmental powers, including making regulations for financial products, services and institutions permitted in an IFSC, insurance included. It is not merely advisory and is not confined to banking or to foreign entities.

  1. AIFSCA may regulate only banking and not insurance
  2. BIFSCA only advises, while approvals remain with the Central Government
  3. CIFSCA has regulatory, developmental and supervisory functions and may make regulations for financial products and services permitted in an IFSCCorrect
  4. DIFSCA can regulate only entities incorporated outside India

Explanation

The Act empowers IFSCA to regulate and develop financial products, services and institutions in IFSCs, including making regulations, with insurance being one of the covered areas. It is not advisory only and not limited to banking or foreign entities.

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