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CS Professional · IFSCA - Regulations, Listing and Compliances · Overview of FinTech and Service Providers in IFSC

Meera, a company secretary, is advising a foreign technology firm that wants to offer a digital onboarding tool to banks in GIFT IFSC. Which practical step is most consistent with the IFSCA framework for FinTech?

The firm should set up in the IFSC, obtain the relevant IFSCA authorisation or follow the prescribed participation route, and meet applicable AML and KYC requirements. Serving IFSC banks without approval, relying on municipal registration, or waiting for a listing would not comply with the IFSCA framework.

  1. AEstablish a presence in the IFSC and seek the relevant IFSCA authorisation or participation route, and comply with applicable AML and KYC normsCorrect
  2. BStart serving IFSC banks from abroad without any presence or approval
  3. CRegister only with the local municipal body of Gandhinagar
  4. DWait for a listing on an international exchange before offering services

Explanation

A FinTech service provider operating in the IFSC must go through IFSCA's prescribed authorisation or participation route and abide by financial crime compliance requirements such as AML and KYC. Operating without presence or approval, or relying on municipal registration or listing, does not satisfy the regime.

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