The Indian government has appointed K Rajaraman, the Telecom Secretary, as the new chairperson of the International Financial Services Centres Authority (IFSCA). Rajaraman will succeed Injeti Srinivas, who held the position since 2020. According to the official notification, Rajaraman’s tenure will be for three years, starting from the date he assumes charge. His appointment will end either when he reaches the age of 65, completes three years in the role, or as per any further orders issued by the government.
About The International Financial Services Centres Authority (IFSCA)
The International Financial Services Centres Authority (IFSCA) was established on April 27, 2020, through the enactment of the International Financial Services Centres Authority Act, 2019. The IFSCA is headquartered at GIFT City, located in Gandhinagar, Gujarat. GIFT City is a designated international financial services center that aims to promote and regulate various financial activities conducted within its jurisdiction. The establishment of IFSCA signifies India’s commitment to creating a robust and competitive global financial services hub within the country.
The Objectives of IFSCA
- Develop and regulate financial products, financial services, and financial institutions in the IFSC
- Promote ease of doing business in the IFSC
- Provide a world-class regulatory environment in the IFSC
- Position the IFSC as a global financial platform
IFSCA’s Role
The International Financial Services Centres Authority (IFSCA) is responsible for the development and regulation of financial products, services, and institutions within the International Financial Services Centre (IFSC) in India. The IFSCA was established to streamline and coordinate the regulatory framework in the IFSC, which was previously regulated by multiple domestic financial regulators.
With its unified regulatory approach, the IFSCA aims to promote a conducive business environment and provide world-class regulatory standards in the IFSC. It recognizes the dynamic nature of the financial sector and the importance of inter-regulatory coordination to facilitate ease of doing business. The IFSCA’s vision is to foster a strong global connection, cater to the needs of the Indian economy, and serve as a prominent international financial platform for the region and the global economy at large.
IFSCA’s Powers
- Register and regulate financial institutions in the IFSC
- Set standards for financial products and services in the IFSC
- Conduct inspections of financial institutions in the IFSC
- Impose penalties on financial institutions in the IFSC for non-compliance with regulations
About GIFT City
Gujarat International Finance Tec-City (GIFT City) is a financial hub in Gandhinagar, Gujarat. It is India’s first operational greenfield smart city and international financial services center, which the Government of Gujarat promoted as a greenfield project.
- It is divided into three zones: the International Financial Services Centre (IFSC), the Domestic Tariff Area (DTA), and the Special Economic Zone (SEZ).
- It is home to a number of financial institutions, including banks, insurance companies, and asset management firms. It is also home to a number of technology companies, including IT firms and software development companies.
- It is well-connected to the rest of India by road, rail, and air. It is located just 30 kilometers (19 mi) from Ahmedabad, which is a major transportation hub.
- It is a rapidly growing financial hub. It is expected to become a major center for financial services in India and the world.
GIFT City Ltd is a company incorporated under the Companies Act, 1956. It is the special purpose vehicle (SPV) responsible for the development and management of Gujarat International Finance Tec-City (GIFT City). The company is owned by the Government of Gujarat and the Gujarat Urban Development Corporation (GUDC).
