The Lok Sabha on Wednesday passed a bill for establishing a unified authority for regulating and developing financial services market in International Financial Services Centre (IFSC).
The International Financial Services Centres Authority Bill, 2019, was passed after a reply by Union Finance Minister Nirmala Sitharaman.
Replying to the debate, Sitharaman said the "financial exclusive SEZ" in Gujarat was approved by the UPA government in 2011.
Referring to points made by Opposition members, she said Prime Minister Narendra Modi, who was then Gujarat Chief Minister, was the first mover of the International Financial Services Centre.
"It was proposed and clearance was given in 2015. The application was made by Gujarat government in 2011 and permission was given by the Commerce Ministry (then)," she said.
Referring to demands of members for setting up International Financial Services particularly in Mumbai, she said: "Nothing stops states from applying".
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She also cited former Finance Minister Arun Jaitley as saying that more such SEZs should be considered once the potential of the existing SEZ is fully realised.
She also took a dig at Opposition members who pointed to prohibition in Gujarat as a factor that may come in the way of attracting the right talent for the SEZ.
"When the Commerce Ministry gave permission, it did not come to your mind, then you did not think about prohibition," she said.
Sitharaman said there had been Congress governments in Gujarat in the past and they did not think prohibition will come in the way of attracting industry.
The Union Cabinet had earlier approved the withdrawal of the bill from Rajya Sabha and its introduction in Lok Sabha as it is a "money bill".
The statement of objects and reasons of the bill states that the banking, capital markets and insurance sectors in IFSCs are regulated by multiple regulators such as RBI, SEBI, and IRDAI but the dynamic nature of business in the IFSCs necessitates a high degree of inter-regulatory coordination.
It states development of financial services and products in IFSCs would require focused and dedicated regulatory interventions and a need was felt for having a unified financial regulator for IFSCs in India to provide a world-class regulatory environment to financial market participants.
The Special Economic Zones Act, 2005, provides that the Central government may approve the setting up of an International Financial Services Centre in an SEZ and prescribe the requirements for setting up and operate such a centre.
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