||The Bill will apply to all International Financial Services Centres (IFSC) comes under the Special Economic Zones Act, 2005.
|Constitution of the International Financial Services Centres Authority:
||The Bill provides for the set up of the International Financial Services Centres Authority. The Authority will encompass nine members, appointed by the central government. These posts will have a tenure of three years, subject to reappointment.
|Members of the Authority will cover in:
- the Chairperson
- four members to be elected from the Reserve Bank of India, the Pension Fund Regulatory & Development Authority, the Securities Exchange Board of India, the Insurance Regulatory and Development Authority of India
- two members from among officials of the Ministry of Finance,
- two members to be appointed on the suggestion of a Selection Committee.
|Functions of the Authority
Functions of the Authority include:
- regulating financial services, financial products, and financial institutions in an IFSC which have been approved by any regulator like the RBI or SEBI, before the enactment of the Bill,
- regulating any other services, financial products, or institutions in an IFSC, which may be informed by the central government,
- recommending to the central government, any other financial services, products, or institutions which may be permitted in an IFSC.
|Performance Review Committee
|| The Authority will constitute a Performance Review Committee to review the functioning of the Authority. The Committee will cover in at least two members of the Authority.
The Committee will review whether:
- the Authority has complied with the provisions of the applicable laws while performing functions, or exercising powers
- the regulations made by the Authority to promote lucidity and best practices of governance,
- the Authority is managing risks to its functioning in a reasonable manner.
Transaction in foreign currency
||Under the Bill, all transactions of financial services in IFSCs will be in such foreign currency as specified by the Authority, in consultation with the central government.
|International Financial Services Centres Authority Fund
The Bill institutes the International Financial Services Centres Authority Fund. The following amounts will be credited to the Fund:
- all charges, fees and grants received by the Authority,
- all sums received by the Authority from various sources, as decided by the central government.