Consider the following Statements about International Financial Centres and choose the option with correct Statements.

I- In India, we cannot have more than one IFSC.

II- RBI, SEBI, IRDAI & Pension Fund Regulatory and Development Authority of India (PFRDAI) jointly regulate the Financial Institutions in IFSC.

III- Only the Indian Domestic Companies are allowed to operate in the IFSCs.

Solution

Setting up and operationalising India’s maiden IFSC in GIFT City has been a path-breaking financial reform underpinning India’s increasingly liberal outlook towards capital account convertibility. GIFT-IFSC is housed in India’s first fully operational Smart City with world-class commercial, social and physical infrastructure. To bolster the development of IFSC, the Government took a major policy decision to establish the first of its kind, unified and agile financial sector regulator for IFSCs viz International Financial Services Centers Authority (IFSCA) through an Act of Parliament in 2019. From 1st October 2020, IFSCA assumed the power of four domestic sector regulators, namely RBI, SEBI, IRDAI & Pension Fund Regulatory and Development Authority of India (PFRDAI), in so far as the development and regulation of IFSCs in India were concerned.