Injeti Srinivas Committee submits report
On October 22, 2020, the Injeti Srinivas Committee submitted its second interim report to the chairperson of International Financial Services Centres Authority (IFSCA). It was an IFSCA Expert Committee that was constituted to study about the international retail business development in IFSC.
The committee as constituted to make recommendations on promoting international retail business in IFSC (International Financial Service Centre). It was also constituted to
- Suggest potential strategies to make IFSC attractive for international financial services.
- Provide a roadmap for future growth of international retail business in IFSC
- Examine and recommend issues that are important in the development of IFSC.
Recommendations of the committee
- To allow persons of Indian Origin and permanent non resident Indians to buy life insurance policies in companies that are set up in IFSC. Also, they should be allowed to pay the premium in currency of their own choice.
- The non resident Indians should be permitted to buy portable life insurance policies. These policies provide them flexibility to pay premium in Indian rupees.
- The permanent residents should be allowed to buy Overseas Health Insurance. This shall be facilitated through intermediaries in IFSC
- The insurance companies should be allowed to provide insurance products to family members of non resident Indians and persons of Indian origin as well.
- The Insurance companies in IFSC in should be allowed to offer baggage losses, accident cover, travel Health Insurance and documents lost cover.
- The IFSC should aim to to become an aviation insurance hub for the world
- More of the Asian and African insurance companies should be encouraged. This is because they have huge potential than the rest of the world.
- The Indian investors should be allowed to set up insurance companies to promote insurance abroad.
According to the committee the Indian Insurance sector is underperforming as compared to those in developed economies. The committee believes that IFSC it has potential to to become an engine of economic growth for India.
IFSC GIFT City
GIFT City is Gujarat International Finance Tech City. It is the first International Financial Services centre of India. It caters to customers outside the Indian jurisdiction. It will deal with finance flows and services across borders.
Services provided by IFSC
- it provides fundraising services
- Wealth Management
- Global tax management
- Global and regional corporate treasury management
- risk management
- merger and acquisition services
- insurance and reinsurance services
Special Economic Zone
The SEZ Act, 2005 allows to set up IFSC in SEZ.
Category: Reports & Indexes Current Affairs