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CS Professional · IFSCA - Regulations, Listing and Compliances · International Financial Services Centres: An Introduction

Meridian Capital Pvt Ltd wants to offer financial services from a centre in Gandhinagar. Before relying on the IFSCA Act, 2019, its company secretary checks the Act's territorial application. To which centres does the Act apply?

The IFSCA Act, 2019 applies to International Financial Services Centres set up under section 18 of the Special Economic Zones Act, 2005. Hubs created by States, by RBI, or ordinary SEZs that are not IFSCs fall outside its scope.

  1. AAny financial hub notified by a State Government
  2. BInternational Financial Services Centres set up under section 18 of the Special Economic Zones Act, 2005Correct
  3. COnly centres set up by RBI under the Banking Regulation Act
  4. DAny Special Economic Zone, whether or not it is an IFSC

Explanation

Section 2 provides that the Act applies to International Financial Services Centres set up under section 18 of the Special Economic Zones Act, 2005. State notification, RBI-created centres or any SEZ are not the test. An ordinary SEZ that is not an IFSC is outside the Act.

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