On Monday 27th of April 2020 through a notification Government of India has established the International Financial Services Central Authority (IFSCA) and the headquarter will be established in Gandhinagar, Gujarat.
The notification issued by the Govt. of India brings into certain provisions of the IFSCA Act, 2019.
The main function of the authority is to be regulated by some financial products such as contracts of insurance, deposits, and securities of the financial institutions which have been approved by some regulators such as Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), and Pension Fund Regulatory and Development Authority (PFRDA).
There are 9 members in the authority which are appointed by Govt. of India for a term of three years. The members of IFSCA include a chairperson, one member from RBI, one member from SEBI, one from IRDA, one from PFRDA, two members from the Ministry of Finance, two members based on the recommendation of the search committee.
The main object to establish this authority is to raise funding services to individuals, corporates, and governments. This authority will also help to reduce the burden of other multiple regulators such as RBI, SEBI, IRDAI because of all the insurance, capital markets are regulated by themselves.
Thus, the IFSCA will act as a unified authority to the IFSC in India.