The Parliament has passed The International Financial Services Centres Authority Bill 2019. The Act will apply to be the International Financial Services Centres (IFSC) set up under See 18 of the Special Economic Zones Act, 2005. The Act will apply to Financial Products and Financial Services. The Powers exercisable by RBI, SEBI, IRDA, FEMs will not extend to IFSCs. Credit Information Companies (Regulation) Act will also not apply. So are the Payment and Settlement Systems Act, Pension Fund Regulation and Development Authorities Act’s important sections.
The objective of the Act is to “enable bringing back the financial services and transactions that are currently carried out in offshore financial centres by Indian corporate entities and overseas tranche and subsidies of financial institutions to India by offering world-class business and regulatory environment. It would enable Indian corporates easier access to global financial markets.”
So the Act is one more red carpet to the Corporates, with the freedom to do what they want without bothering about laws and regulators.
Will this improve the Indian Economy? Please watch the short video:
The former Finance Minister in 2015 itself welcomed the Indian as well as international corporates saying he is waiting for them. So many concessions have been given, Corporate Tax and Wealth Tax concessions, reduction in Bank Interest for loans. NCLT to write off their loans with haircuts, dilution of laws and rules, huge loans without adequate security, Special Economic Zones to avoid labour laws etc. But they have not responded because they want only unlimited wealth. They don’t care for the nation or it’s citizens. Where will this end? When will India become a true democracy by the people, of the people and for the people?
Thomas Franco is former General Secretary of All India Bank Officers’ Confederation.