IFSCA Bill grants central government power to supersede authority

Who it concerns: The law applies to International Financial Services Centres set up under the Special Economic Zones Act, 2005, and affects financial institutions, regulators, and entities operating within these specific zones.

What the bill does

• Establishes the International Financial Services Centres Authority as a body corporate with perpetual succession.
• Defines the Authority's composition, including a Chairperson, ex-officio members from RBI, SEBI, IRDAI, and PFRDA, and other appointed members.
• Grants the Authority the power to regulate financial products, services, and institutions in IFSCs, overriding other laws where necessary.
• Specifies that the Authority can issue directions, make rules and regulations, and has powers regarding foreign exchange transactions.
• Provides for the Authority's funding through grants by the Central Government and its own fund.
• States that members, officers, and employees of the Authority are to be treated as public servants.
• Includes provisions for the exemption of the Authority from tax on wealth and income.

Also in the document

• The Bill includes a provision for the power to modify provisions of other enactments in relation to International Financial Service Centres.
• It grants the Central Government the power to supersede the Authority.
• The Bill defines 'financial product' and 'financial service' broadly, including securities, insurance, deposits, and credit arrangements.