Context

International Financial Services Centres Authority (IFSCA) has become an associate member of the International Organization of Securities Commissions (IOSCO).

About

What is IOSCO?

• The International Organization of Securities Commissions (IOSCO) is the international body that brings together the world's securities regulators.
• IOSCO was established in 1983.
• It is recognized as the global standard setter for the securities sector.
• IOSCO develops, implements and promotes adherence to internationally recognized standards for securities regulation.
• It works intensively with the G20 and the Financial Stability Board (FSB) on the global regulatory reform agenda.
• India is a member of the IOSCO Board.

About IFSCA

• The first International Financial Services Centre (IFSC) in the country has been set up at the Gujarat International Finance Tec-City (GIFT) in Gandhinagar.
• To regulate such institutions, the government established IFSCA in 2019 with its head office in Gandhinagar.
• It  is a statutory unified regulatory body under the Department of Economic Affairs, Ministry of Finance
• IFSCA has been established as a unified regulator with a holistic vision in order to promote ease of doing business in IFSC and provide world class regulatory environment. 
• Objective: The main objectives are:
  • To develop a strong global connect and focus on the needs of the Indian economy
  • To serve as an international financial platform for the entire region and the global economy as a whole.

Significance of the development

• The membership of IOSCO will provide the IFSCA a platform to exchange information at the global level, and even at the regional level, on areas of common interests.
• Further, the IOSCO platform will enable the IFSCA to learn from the experiences and best practices of the regulators of other well established financial centres.