Skip to content

CS Professional · IFSCA - Regulations, Listing and Compliances · Banking Services and Finance Companies in IFSC

Meridian Leasing Ltd. has set up a unit in GIFT IFSC to carry on finance company business. A director asks which authority regulates the unit's finance company activities there. Which is correct?

IFSCA is the regulator. The IFSCA Act, 2019 makes it the unified authority for financial services in IFSCs, and finance companies are governed by its Finance Company Regulations, 2021, so RBI, SEBI or MCA registration is not the route for IFSC finance company activity.

  1. AReserve Bank of India, as for all NBFCs in India
  2. BInternational Financial Services Centres AuthorityCorrect
  3. CSecurities and Exchange Board of India
  4. DMinistry of Corporate Affairs

Explanation

The IFSCA Act, 2019 created IFSCA as the unified regulator for financial products, services and institutions in IFSCs. Finance companies there are regulated under the IFSCA (Finance Company) Regulations, 2021. RBI regulates domestic NBFCs, not units operating in the IFSC.

Did you get it right without looking?

One question tells you little. A timed set on Banking Services and Finance Companies in IFSC shows your real accuracy, how long you take and where you lose marks.

Practise Banking Services and Finance Companies in IFSCFree diagnostic mock

More Banking Services and Finance Companies in IFSC questions