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IFSCA Committee submits interim report on development of international retail business
New Delhi, September 23, 2020
The International Financial Services Centres Authority (IFSCA) Expert Committee on international retail business development has submitted its interim report to IFSCA Chairperson Injeti Srinivas.
The interim report contains several suggestions aimed at swift and efficient development of international retail businesses in the IFSC and focuses mainly on the banking vertical, an official press release said.
Other key business verticals such as insurance, asset management and capital markets will be covered in reports that the committee plans to release subsequently.
The Expert Committee has been constituted by the IFSCA to suggest steps to develop international retail business in International Financial Services Centre (IFSC) along with potential strategies for making IFSC attractive for international financial services; provide a roadmap for the future growth of international retail business in IFSC and also examine and recommend any other important issues.
Speaking of the vision for GIFT IFSC, Injeti Srinivas, Chairperson, IFSCA, said, “Our focus is to provide a best in class jurisdiction with progressive and light-touch regulation to create an attractive location for international financial services. Our vision is to establish GIFT IFSC as a Dominant Gateway for global financial flows into and out of India, and simultaneously emerge as a major global financial hub.”
The committee suggests that the IFSC should aim at becoming a gateway to the India growth story for international investors and business.
It should provide the Indian diaspora and individuals from Asia and Africa with a comprehensive range of financial services.
IFSC should serve domestic residents availing liberalized remittance scheme. The “FinServe from IFSC” would complement the ‘Make in India’ vision of the Union Government.
Pradip Shah, Chairman of the Expert Committee, said, “There is 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.”
The other members of the Expert Committee were G Srinivasan, (Ex-CMD, New India Assurance Ltd.), Siddhartha Sengupta, (ex-DMD, State Bank of India), Shyamal Mukherjee (chairman, PWC), Prakash Subramanian (head-strategy, Standard Chartered Bank), Dipesh Shah (head-IFSC dept., GIFT IFSC) and Nitin Jaiswal (head-Govt Affairs and Strategic relations, Bloomberg, Asia Pacific).
The Union Government had constituted the IFSCA with I Srinivas as its Chairperson earlier this year to develop and regulate the financial services market in India.
Apart from channelizing India's offshore business to the IFSC located at GIFT City and making it the gateway for India centric international financial services, the objective was to make it a global hub for international financial services on the lines of London, Hong Kong, Singapore, and Dubai.