CS Executive · Setting Up of Business, Industrial and Labour Laws · Financial Services Organization
Sunrise Reinsurance Ltd proposes to carry on insurance business from an International Financial Services Centre (IFSC) set up in GIFT City. Under the Insurance Act, 1938, who exercises the regulatory powers over financial products, services and institutions permitted in the IFSC?
The International Financial Services Centres Authority exercises these powers. Section 118A of the Insurance Act, 1938 provides that the insurance authority's powers do not extend to an IFSC and are instead exercisable by the IFSCA for financial products, services and institutions permitted in the IFSC.
- AThe Insurance Regulatory and Development Authority, as for all insurers in India
- BThe Reserve Bank of India, as the central banking regulator
- CThe International Financial Services Centres AuthorityCorrect
- DThe Securities and Exchange Board of India
Explanation
Section 118A of the Insurance Act, 1938 says the powers of the Insurance Authority do not extend to an IFSC. Those powers are exercisable by the International Financial Services Centres Authority for products, services and institutions permitted in the IFSC. The Reserve Bank and SEBI are not named in this provision.
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