Why is it in the news ?
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The Union Cabinet has approved establishment of a unified authority for regulating all financial services in International Financial Services Centres (IFSCs) in India.
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It is established through International Financial Srvices Centres Authority Bill, 2019.
More in the news
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An IFSC is aimed at encouraging Indian companies that are conducting business in foreign financial centres such as London and Singapore, to bring that business to India by providing them with a global-standard regulatory and business environment.
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It would provide Indian corporates easier access to global financial markets.
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IFSC would also compliment and promote further development of financial markets in India.
Why a unified regulator?
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Currently, the banking, capital markets and insurance sectors in IFSC are regulated by multiple regulators, i.e. RBI, SEBI and IRDAI.
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The dynamic nature of business in the IFSCs necessitates a high degree of inter-regulatory coordination.
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It also requires regular clarifications and frequent amendments in the existing regulations governing financial activities in IFSCs..
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The development of financial services and products in IFSCs would require focussed and dedicated regulatory interventions.
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Hence, a need is felt for having a unified financial regulator for IFSCs in India to provide world class regulatory environment to financial market participants.
Source
PIB