Consider the following Statements and choose the option with wrong Statements. (i) International Financial Services Centres Authority is a constitutional body. (ii) In India, the IFSCA is the single body in charge of regulation of all the Financial Institutions. (iii) IFSCA has no representation from regular regulatory bodies in India.

Solution

Explanation: IFSCA regulates 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 Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI) etc., in an IFSC. It will also regulate any other financial products, financial services, or financial institutions in an IFSC, which may be notified by the central government. It may also recommend to the central government any other financial products, financial services, or financial institutions, which may be permitted in an IFSC. The International Financial Services Centres Authority will consist of nine members, appointed by the central government. They will include chairperson of the authority, a member each from the RBI, 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. In addition, two other members will be appointed on the recommendation of a Selection Committee. Term: All members of the IFSC Authority will have a term of three years, subject to reappointment. IFSCA is not a Constitutional Body. It is created under IFSCA Act of 2019. Hence, it is a Statutory Body.