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

Zephyr Capital Ltd, a Mumbai-based firm, plans to open a unit in GIFT City and asks which Central enactment makes the IFSCA Act, 2019 applicable to an International Financial Services Centre. Under the Act as worded, to which centres does it apply?

The IFSCA Act, 2019 applies to International Financial Services Centres set up under section 18 of the Special Economic Zones Act, 2005. Its application is tied to that SEZ-law route, not to RBI, SEBI or Companies Act notifications.

  1. ACentres set up under section 18 of the Special Economic Zones Act, 2005Correct
  2. BAny financial hub notified by the RBI in any State
  3. COnly centres set up under the Companies Act, 2013
  4. DAny offshore banking unit approved by SEBI before 2020

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. The other options name sources or bodies that the section does not mention.

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