Facts for Prelims (FFP)
Context: The Indian finance ministry has announced that courses in financial management, fintech, science, technology, engineering, and mathematics (STEM) offered by foreign institutions in International Financial Services Centres (IFSCs) (such as GIFT City) will be exempt from certain provisions of the University Grants Commission Act and the All-India Council for Technical Education Act.
Regulation: Regulatory framework of the respective home country shall apply in all academic matters in such FIs. Also, the regulatory authority for IFSCs, the IFSC Authority (IFSCA), will have limited jurisdiction over these courses.
Aim: This move aims to provide flexibility and encourage the participation of foreign institutions in offering specialized courses in the financial and technology sectors within IFSCs.
International Financial Services Centres (IFSCs) are designated areas within a country that facilitate the conduct of global financial services. They are designed to attract international financial institutions, banks, and other financial service providers by offering a business-friendly environment and a range of tax benefits. It caters to customers outside the jurisdiction of the domestic economy.
Examples: Dubai International Financial Centre (DIFC); GIFT City; Singapore International Commercial Court (SICC); Shanghai International Financial Centre (SIFC)