The International Financial Services Centres Authority (IFSCA) has recently constituted an expert committee on Investment Funds.
- The Committee has been constituted under the Chairmanship of Mr. Nilesh Shah, MD, Kotak Mahindra Asset Management Co. Ltd.
- The Committee comprises of leaders from the entire Fund Management ecosystem including from areas such as technology, distribution legal, compliance, and operations.
Specific Terms of Reference of the Expert Committee:
- To recommend IFSCA on the long-term vision for operations of Investment Funds in IFSC.
- To make recommendations with respect to the structure of Investment Funds in IFSC. The recommendations may be two-fold:
- Short term in nature that can be implemented by IFSCA immediately (i.e. less than 3 months). Such suggestions may fall under the exclusive regulatory purview of IFSCA.
- Recommendations that may be implemented in mid-term (6 months to 1 year). Such suggestions may also pertain to the regulatory purview of other regulators.
- To identify issues that may be critical for the development of the Investment Funds industry at IFSCs including inter-regulatory issues.
- Any other relevant item on building the ecosystem inter-alia on asset managers, hedge funds, PE, VC, sovereign funds, family offices, and the accompanying professional services.
- The full form of IFSCA is International Financial Services Centres Authority.
- IFSCA is a unified authority that was launched by the Government of India (GoI) for the development and regulation of financial products, financial services and financial institutions in the International Financial Services Centre (IFSC) in India.
- IFSCA has been established on April 27, 2020, under the International Financial Services Centres Authority Act, 2019.
- It is headquartered at GIFT City, Gandhinagar in Gujarat.
- At present, the GIFT IFSC is the maiden international financial services centre in India.
- Prior to the establishment of IFSCA, the domestic financial regulators, namely, RBI, SEBI, PFRDA and IRDAI regulated the business in IFSC.
- An IFSC enables bringing back the financial services and transactions that are currently carried out in offshore financial centres by Indian corporate entities and overseas branches/subsidiaries of Financial Institutions (such as banks, insurance companies, etc.) to India.