‘IFSCA becomes associate member of the global lobby group IOSCO’

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.

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