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

Suraksha Re Ltd, an Indian insurer, plans to write reinsurance business for overseas cedants from GIFT City, wishing to be regulated by a single unified regulator for the financial products and services permitted in the IFSC. Which statement correctly identifies the regulator for the IFSC insurance business?

IFSCA is the unified regulator for insurance business in an IFSC. The International Financial Services Centres Authority Act, 2019 created it to regulate financial products, services and institutions in IFSCs, replacing the multiple domestic regulators, so IRDAI, RBI or SEBI do not regulate it.

  1. AIRDAI alone regulates all insurance business in the IFSC
  2. BThe International Financial Services Centres Authority (IFSCA) regulates insurance business carried on in the IFSCCorrect
  3. CThe Reserve Bank of India regulates insurance business in the IFSC
  4. DSEBI regulates insurance business in the IFSC

Explanation

The IFSCA Act, 2019 established IFSCA as a unified authority for financial products, services and institutions in IFSCs, including insurance. IRDAI, RBI and SEBI regulate the domestic market, so options naming them are wrong for IFSC business.

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