Currently, the insurance, banking, and securities sectors in an IFSC are regulated by multiple regulators, namely, the IRDAI, the Reserve Bank of India, and the Securities and Exchange Board of India.

"The dynamic nature of business in IFSCs necessitates a high degree of inter-regulatory coordination. It also requires clarifications and frequent amendments to existing regulations governing financial activities in IFSCs," according to an official statement. The development of financial services and products in IFSCs would require focused and dedicated regulatory interventions. Hence, the need is felt for a unified financial regulator for IFSCs.

"Further, this would also be essential from an ease of doing business perspective. The unified authority would also provide the much needed impetus to further the development of IFSCs in India in-sync with the global best practices," the statement added.

Gujarat International Finance Tec-City is the country's first IFSC. Established in 2015, it is currently India's only IFSC. Financial institutions based in the IFSC are recognised as non-resident entities. The key goal is to attract global financial services on-shore which are currently being offered outside India by overseas financial institutions and overseas units of Indian financial institutions.

Source : AIR