IFSCA Committee submits interim report on development of global retail business

An expert committee set up by the International Financial Services Authority (IFSCA) to suggest ways for the development of international retail business in International Financial Services Centres (IFSC) has submitted its interim report to the Chairperson of the Authority.

This report — which focuses mainly on the banking vertical — suggests that the GIFT IFSC can aim at becoming a gateway to India growth story for international investors and business; serving domestic residents availing liberalised remittance scheme and providing Indian diaspora and individuals from Asia and Africa with a comprehensive range of financial services from the IFSC.

‘Immense potential’

“There is an immense immediate potential to promote international retail business in IFSC, and if done efficiently, it will meet three key objectives – boost job creation, generate additional revenue for India, and attract funds (especially from the Indian diaspora) for building India’s infrastructure. The IFSC must aim to provide best in class jurisdictions and aim to build its competitiveness in terms of key factors like reputation, regulatory environment, taxation and ease of operations,” Pradip Shah, Chairman of the Expert Committee, said in a statement.

Going forward, this expert committee would cover other key business verticals — insurance, asset management and capital markets in subsequent reports.

It may be recalled that Government had constituted the IFSCA with Injeti Srinivas, a retired IAS officer and former MCA Secretary, to develop and regulate the financial services market in the IFSC in India.

Apart from channelising India’s offshore business to the IFSC located at GIFT City and making it the gateway for India-centric international financial services, the objective is to make it a global hub for international financial services on the lines of London, Hong Kong, Singapore and Dubai.