SEBI Current Affairs - 2020

International Financial Services Centre Authority established by GoI

The Government of India has established International Financial Services Centre Authority. The headquarters of the authority is to be established in Gandhinagar, Gujarat.

Highlights

The Authority was established through a notification. The notification issued by the GoI brings into effect certain effects of IFSCA Act, 2019. The authority will regulate financial markets in the International Financial Service Centres in India. The main function of the authority is to regulate financial products such as contracts of insurance, deposits, securities of the financial institutions that have been approved by regulators. The regulators include RBI, SEBI, Pension Fund Regulatory and Development Authority, IRDAI.

International Financial services Centres Authority

The authority consists of 9 members that are appointed by the Government of India. The members are to have a term of three years. The members include Chairperson, two members from Ministry of Finance, one each from RBI, SEBI, IRDAI and PFRDA and two members based on the recommendation of search committee

International Financial Service Centre

The IFSC will provide fund raising services to corporates, individuals and governments. It will also look into global tax management, wealth management, merger, risk management operations, etc.

The IFSCA will act as a unified authority to the IFSCs in India. This will reduce the burden of other multiple regulators such as SEBI, RBI and IRDAI. This is because all the insurance, capital markets are currently being regulated by them.

RBI launches 5-year Financial Inclusion Strategy

The Reserve Bank of India has launched National Strategy for Financial Inclusion (2019-24). The main motive of the strategy is to provide access to financial services in an affordable manner.

Highlights

The Strategy has been launched after thorough consultation with SEBI (Securities Exchange Board of India), PFRDA (Pension fund Regulatory and Development Authority of India) and also Insurance Regulatory and Development Authority of India (IRDAI). The strategy was launched based on the recommendations of the Financial Inclusion Advisory Committee that worked in consultation with the above agencies.

Key Recommendations

The following are the recommendations included in the strategy

  • The committee has recommended Universal Financial Access. Under this, every village will have formal financial service provider within a radius of 5 km.
  • The committee has recommended for the strengthening of Digital Financial Services to reach a less-cash society by 2022.
  • Every adult registered under Pradhan Mantri Jan Dhan Yojana should be enrolled in pension scheme and insurance scheme
  • The Public Credit Registry shall be made completely operational by March 2022.