MoF Establishes International Financial Services Centre Authority

The Ministry of Finance through its Department of Economics has issued a notice. The notice issued in the Gazette of India on April 27, 2020. In effect, it provided for the establishment of the International Financial Services Centre Authority. The International Financial Services Centre Authority Act 2019 confers the powers upon the government for the establishment of such Authority.  Section 4(1) and 4(3) of the Act confers such powers. The section provides that the government, for the purpose of this act, shall set up such Authority.

Functioning of the International Financial Services Centre Authority

According to the provisions of the Act, the Authority must be a corporate body. It must have perpetual succession and a common seal. Moreover, the authority shall have the power to enter into, execute and dispose of property both movable and immovable. The central government has the authority to decide the place of its head office. Accordingly, the head of the Authority is decided to be at Gandhinagar, Gujarat.

Composition of the Authority

There must be a chairperson. One member must be nominated from RBI, SEBI, Insurance Regulatory and Development Authority of India and the Pension Fund Regulatory and Development. All the members so nominated must be ex-officio.

Furthermore, two Members, from amongst the officials of the Ministry of Finance, ex officio; and two other members appointed on the recommendation of a Selection Committee. Of course, the Central government will appoint all these members. Besides, the Central government can also remove any member on the grounds mentioned in the Act.