Daily News Analysis

Nilesh Shah Expert Committee on Investment Funds

26th May, 2021 Economy

GS PAPER II: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Context: The International Financial Services Centres Authority (IFSCA) has been established as a unified regulator to develop and regulate financial products, financial services and financial institutions in the International Financial Service Centres (IFSCs) in India.

Need:

  • The Fund Industry has been playing an increasingly important role in intermediating between seekers of capital and investors.
  • The regulatory approach has been to benchmark with Global Standards and adopt a facilitative framework to provide ease of operations for seeker as well as provider of capital.
  • To develop a comprehensive and consistent regulatory framework based on global best practices with a special focus on ease of doing business.

Nilesh Shah Expert Committee on Investment Funds

  • It has been constituted to holistically review the Global best practices and make recommendations to IFSCA on the roadmap for the industry.
  • It will recommend IFSCA on long term vision for operations of Investment Funds in IFSC.
  • It will identify issues that may be critical for development of the Investment Funds industry at IFSCs including inter-regulatory issues.
  • Any other relevant item on building the ecosystem inter-alia on asset managers, hedge funds, PE, VC, sovereign funds, family offices, and the accompanying professional services.

About the International Financial Services Centres Authority (IFSCA):

  • It a statutory body, which has been established under the International Financial Services Centres Authority Act, 2019.
  • It is headquartered at GIFT City, Gandhinagar in Gujarat.

Role of IFSCA

  • It is a unified authority for the development and regulation of financial products, financial services and financial institutions in the International Financial Services Centre (IFSC) in India.
  • GIFT IFSC is the maiden international financial services centre in India.
  • Prior to the establishment of IFSCA, the domestic financial regulators, namely, RBI, SEBI, PFRDA and IRDAI regulated the business in IFSC.

https://pib.gov.in/PressReleasePage.aspx?PRID=1721747