Why in the News?
The International Financial Services Centres Authority Bill, 2019 has been introduced by the Union Finance Minister Nirmala Sitharaman in Lok Sabha on November 25. The Bill has a provision for the establishment of International Financial Services Centres Authority and also regulate the financial services market in the International Financial Services Centres in India.
What is the constitution of the Authority?
The Authority will consist of nine members, appointed by the Union government. Apart from the chairperson of the authority, a member each from the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the Pension Fund Regulatory and Development Authority (PFRDA); and two members from the Ministry of Finance will be in this authority. Two other members will be appointed on the recommendation of a Search Committee. All members of the IFSC Authority will have a term of three years, subject to reappointment.
What will the authority do?
The proposed authority will regulate financial products such as securities, deposits or contracts of insurance, financial services, and financial institutions which have been previously approved by any appropriate regulator such as RBI or SEBI, in an IFSC.
