Vendors sell fish at a retail fish market in Kolkata. (Image: Reuters)
An expert committee on the International Financial Services Centres Authority (IFSCA) submitted its report on international retail business development to the chairperson of the IFSCA.
According to a statement issued by the government, the interim report covers a number of suggestions aimed at swift and efficient development of international retail businesses in the international financial centres (IFSC), and focuses mainly on the banking vertical.
Other key business verticals like insurance, asset management, and
capital markets, would be covered in reports that the committee plans to release subsequently.
“Our focus is to provide a best in class jurisdiction with progressive and light touch regulation to create an attractive location for international financial services. Our vision is to establish GIFT IFSC as a Dominant Gateway for global financial flows into and out of India, and simultaneously emerge as a major global financial hub,” Injeti Srinivas, chairperson, IFSCA said.
The expert committee has been constituted by the IFSCA with an aim to suggest how to develop international retail business in international financial services centre (IFSC) along with potential strategies for making IFSC attractive for international financial services. It would also provide a roadmap for future growth of international retail business in IFSC and also examine and recommend any other issues that are important in the development of the IFSC.
The committee also suggested that the IFSC can aim at becoming a gateway to India's growth story for international investors and business by providing Indian diaspora and individuals from Asia and Africa with a comprehensive range of financial services from the IFSC.
“There is immense immediate potential to promote international retail business in IFSC, and if done efficiently, it will meet three key objectives – boost job creation, generate additional revenue for India, and attract funds (especially from the Indian diaspora) for building India’s infrastructure. The IFSC must aim to provide best in class jurisdictions and aim to build its competitiveness in terms of key factors like reputation, regulatory environment, taxation and ease of operations,” said Pradip Shah, chairman of the expert committee.
The other members of the expert committee include G Srinivasan, (Ex-CMD, New India Assurance), Siddhartha Sengupta, (ex-DMD, State Bank of India), Shyamal Mukherjee (chairman, PWC), Prakash Subramanian (head-strategy, Standard Chartered Bank), Dipesh Shah (head-IFSC dept., GIFT IFSC) and Nitin Jaiswal (head-government affairs and strategic relations, Bloomberg, Asia Pacific).
The government of India had constituted the IFSCA with Injeti Srinivas as its chairperson earlier this year to develop and regulate the financial services market in the IFSC in India.
Apart from channelizing India's offshore business to the IFSC located at GIFT City and making it the gateway for India centric international financial services, the objective is to make it a global hub for international financial services on the lines of London, Hong Kong, Singapore, and Dubai.