Topics Covered: Important International institutions, agencies and fora, their structure, mandate.
International Organization of Securities Commissions (IOSCO):
Context:
The International Financial Services Centres Authority (IFSCA) has become an Associate Member of the International Organization of Securities Commissions (IOSCO).
IFSC in India:
- The first International Financial Services Centre (IFSC) in the country has been set up at the Gujarat International Finance Tec-City (GIFT) in Gandhinagar.
- To regulate such institutions, the government established IFSCA on April 27 last year with its head office in Gandhinagar.
- In December 2019, Parliament passed a bill to set up a unified authority for regulating all financial activities at IFSCs in the country.
About IOSCO:
- It is the international body that brings together the world’s securities regulators and is recognized as the global standard setter for the securities sector.
- IOSCO develops, implements and promotes adherence to internationally recognized standards for securities regulation.
- It works intensively with the G20 and the Financial Stability Board (FSB) on the global regulatory reform agenda.
Members:
IOSCO was established in 1983. Its membership regulates more than 95% of the world’s securities markets in more than 115 jurisdictions; securities regulators in emerging markets account for 75% of its ordinary membership.
InstaLinks:
Prelims Link:
- What are IFSCs?
- Can they be set up in SEZs?
- India’s first IFSC.
- Services they provide?
- Limitations.
- About IOSCO.
Mains Link:
Discuss the significance of international financial services centres.
Sources: PIB.
