Cabinet approves signing of Bilateral Memorandum of Understanding (MoU) by International Financial Services Centres Authority (IFSCA) with Financial Services Commission Mauritius (FSC Mauritius), Capital Markets Authority, State of Kuwait (CMA Kuwait) and Bangladesh Securities and Exchange Commission (BSEC)
The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the proposal for signing of three (3) Bilateral Memorandum of Understanding (MoU) by International Financial Services Centres Authority (IFSCA) with Financial Services Commission Mauritius (FSC Mauritius), Capital Markets Authority, State of Kuwait (CMA Kuwait) and Bangladesh Securities and Exchange Commission (BSEC).
Purpose of signing the multilateral MoU:
The MoUs with FSC, CMA Kuwait and BSEC would help IFSCA in securing co-operation with the respective Authorities in order to effectively develop and regulate the financial products, financial services and financial institutions in Gujarat International Finance Tec-city (GIFT) International Financial Services Centre (IFSC).
The enhanced co-operation of IFSCA with the said regulatory authorities is intended to promote knowledge sharing between the authorities, particularly exchange of best practices and experiences in building international financial centres, thus contributing to IFSCA's learning curve in formulating and implementing world class financial regulations.
Co-operation between financial centres and authorities will be mutually beneficial in enhancing innovation in financial services, investor protection and competitiveness in respective markets and would contribute towards enhancing cross-border participation of the entities in the financial centres.
The MoUs would formalise and strengthen information sharing framework between IFSCA and the other regulators which assumes importance in the present context where significant cross-border flows are involved and enforcement of regulations require deep cooperation with financial regulators the world over.
Impact, including employment generation potential:
The signing of the three Bilateral MoUs will strengthen knowledge and information sharing between regulators/supervisors leading to effective development and regulation of financial services and products in IFSCs. Such relationships with overseas regulators/authorities will result in a robust mechanism for regulatory enforcement and boost the global standing of IFSCs in India as an attractive jurisdiction for investment.
By contributing to a stable and conducive business environment, these agreements for multilateral cooperation would stimulate investments and employment in Gujarat International Financial Tec-City (GIFT-IFSC) in the foreseeable future. Overall, it would lead to faster development of GIFT IFSC which embodies the spirit of Atmanirbhar Bharat.
Background:
The IFSCA was established under the International Financial Services Centres Authority Act, 2019 ("IFSCA Act") as a unified regulator of banking, insurance, capital market, pension fund and allied activities for development and regulation of financial products, financial services and financial institutions in the International Financial Services Centres (IFSCs) in India. The main functions of the IFSCA include registration, supervision and regulation of financial entities, products and services in the IFSCs in India.
The FSC Mauritius is the integrated regulator for the non-bank financial services sector and global business. Established in 2001, the FSC Mauritius is mandated under the Financial Services Act 2007. The FSC Mauritius operates within a modern and internationally recognised legal framework and licenses, regulates, monitors, and supervises the conduct of business activities in the non-banking financial services sector.
The CMA Kuwait was established by Law No. 7 of 2010 which was issued on February 21, 2010. The CMA Kuwait implements the aforementioned law by regulating and developing the Capital Markets in the State of Kuwait, while supervising and monitoring regulated companies with the aim of promoting fairness and transparency in transactions related to the securities markets and giving confidence to investors by protecting them from illegal practices and by enforcing securities related laws and regulations.
BSEC was established on 8th June, 1993 as the regulator of the country's capital market through enactment of the Securities and Exchange Commission Act, 1993. The missions of BSEC are to protect the interests of securities investors, to develop and maintain fair, transparent and efficient securities markets and to ensure proper issuance of securities and compliance with securities laws.
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(Release ID :253488)