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CS Professional · Strategic Management and Corporate Finance · An Overview on Listing and Issuance of Securities in International Financial Services Centre

Under the IFSCA Act, 2019, how is a 'financial institution' defined?

A financial institution is a unit set up in an International Financial Services Centre that is engaged in rendering financial services in respect of any financial product. Location in an IFSC is essential; a regulator in the First Schedule is an 'appropriate regulator', not a financial institution.

  1. AAny bank registered with the Reserve Bank of India anywhere in India
  2. BA unit set up in an International Financial Services Centre and engaged in rendering financial services in respect of any financial productCorrect
  3. CAny company listed on a recognised stock exchange in India
  4. DAny regulator specified in the First Schedule to the Act

Explanation

The Act defines a financial institution as a unit set up in an IFSC that is engaged in rendering financial services in respect of any financial product. The location in an IFSC is essential. Option D describes an 'appropriate regulator', not a financial institution.

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