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

Mehta Re Ltd. plans to underwrite reinsurance business from GIFT City. A director asks which body is the single unified regulator for financial products, services and institutions in an International Financial Services Centre in India. Which answer is correct?

The International Financial Services Centres Authority is the unified regulator for financial products, services and institutions in an IFSC. It was set up under the IFSCA Act, 2019 and takes over regulatory functions otherwise spread across RBI, SEBI and IRDAI for IFSC business.

  1. AInsurance Regulatory and Development Authority of India alone
  2. BInternational Financial Services Centres AuthorityCorrect
  3. CReserve Bank of India alone
  4. DSecurities and Exchange Board of India alone

Explanation

The International Financial Services Centres Authority Act, 2019 created IFSCA as a unified regulator for financial products, services and institutions in IFSCs. IRDAI, RBI and SEBI regulate the domestic market, and their powers in the IFSC are exercised by IFSCA for IFSC business. Hence IFSCA is the correct answer.

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