IFSCA in the process of creating an International Arbitration Center at GIFT IFSC


The International Financial Services Centers Authority (IFSCA) is setting up an international arbitration center within the IFSC GIFT for a swift resolution of any dispute, its president Injeti Srinivas said on Friday.

The IFSCA is a unified authority for the development and regulation of financial products, financial services and financial institutions within the International Financial Services Center (IFSC) in India. At present, GIFT IFSC is the country’s leading international financial services center.

“In a financial center, the speedy resolution of disputes is very critical. We are making progress (in this direction) and are on the verge of establishing an international arbitration center within the GIFT IFSC,” said Srinivas.

He was speaking at the financial markets summit of the Confederation of Indian Industry (CII).

The center will be modeled on the Singapore International Arbitration Center or the London Commercial Arbitration Center, he said.

Srinivas said that the IFSCA has already prepared a proposal and is in discussions with the Ministry of Justice to be able to set up this international arbitration.

The unified authority is also considering setting up the International Bullion Exchange and has already drawn up the regulations for it, he said.

Srinivas said that BSE, NSE (National Stock Exchange), Central Depository Services Ltd (CDSL), National Securities Depository Ltd (NSDL) and Multi Commodity Exchange of India Ltd (MCX) have come together to create a holding company for the securities industry. bullion in the IFSC.

“They have already launched the subsidiary The Bullion Exchange, which will operate as an exchange and also as a clearing and settlement cooperation,” he said.

Detailed regulations and guidelines for trading bullion have been released, he added.

Srinivas said that an effective trade finance agreement can help small and medium-sized enterprises (SMEs) access foreign capital.

“Today large companies can access foreign capital and external commercial borrowing, but small and medium enterprises find it very difficult. I think IFSC can become a hub for SMEs to access trade finance. “, did he declare.

Srinivas said there is a huge opportunity in the real-time settlement area of ​​multi-currency settlement.

NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement) are very effective for domestic remittances, but in terms of cross-border transfers it comes at a huge cost, he noted.

“We can become a national financial laboratory to experiment with the convertibility of the capital account in a progressive way. We are in discussions with the Reserve Bank of India for many of these proposals, including the possibility of having an offshore central bank digital currency (CBDC) INR, ”he said.

Srinivas said FinTech is an important area and the authority wants to build on its strength when it comes to cross-border FinTech.

“We can become a gateway and we have taken some steps in the direction of foreign FinTech companies looking to access the market in India, and for Indian FinTech companies, looking to access the overseas market,” he said. -he declares.

The IFSCA is in the process of setting up a FinTech incentive program, he added.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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