Revenue of a country has different sources. The economy of a country depends on various types of taxes, financial services or products that includes banking, financial institutions, insurances and any sources that generate financial flow subject to the existing law in force in a country. The International financial services Centres Authority act 2019 was enacted on 19th December 2019 with the objective of regulation and development of financial service market in the International Financial service centers in India. The act contains six chapters 34 sections and two schedules and the Centre is headquartered at Gift City, Gandhi Nagar, and Gujarat.
The advantages of the constitution of the IFSC Act is beyond the domestic financial services and products by the virtue of the act it can attract international or overseas financial investors, global tax management, corporate treasury regulation, fund raising and the domestic financial market have access to global financial markets as well. The availing of global tax benefits is a major feature of IFSC. The basic requirement of an IFSC is the legal frame work for implementation of its regulations, well developed infrastructure and sustainable local economy that is ensured by the provisions of the Act.
Chapter 3 of the act deals with the functions and authority of the IFSC mainly focusing on the regulation of financial institutions, financial services and financial products with regard to the 1st schedule of the act and the penalties and fines for any act done in contravention of provisions in the is also mentioned. In accordance with chapter 4 of the act the Central Government has the authority to provide suitable grants for achieving the purpose of the act. As per section 15 IFSC Authority fund is constituted for raising fund as grants, fees and it is used for all financial expenses incurred and for salaries and appropriate allowance for the members. A performance review committee is also constituted as per section 17 for having a review on the functions of the authority. The authority should maintain a website or any form of repository that has universal accessibility of electronic information with regard to any financial services and products as per section 18.
The foreign exchange transactions are stated in chapter 5 provided such transactions are subject to the consultation with the Central Government. Chapter 6 also specifies the power of central Government to issue directions and the superseding power over the authority.
The impact of the act has tremendous positive changes in the financial service sector where RBI provided opportunities for the IFSC units for both Indian and foreign banks operating in India. IFSC is thus by virtue of the enactment had all aid from SEBI, IRDA and Tax incentives and exemption on regulations has every favorable circumstances to flourish both in Indian and Global financial service sectors and provides Indian financial service and marketing companies to have easy access to global financial markets. It is indeed a fact that Institution of IFSC provides numerous employment opportunities in the Domestic and international financial sector.