Context: The International Financial Services Centres Authority (IFSCA) has become an Associate Member of the International Organization of Securities Commissions (IOSCO).

About International Financial Services Centres Authority (IFSCA)

• It has been established in 2020 under the International Financial Services Centres Authority Act, 2019.
• It is headquartered at GIFT City, Gandhinagar in Gujarat.
• It is a unified authority for the development and regulation of financial products, financial services and financial institutions.
• The GIFT IFSC is the maiden international financial services centre in India.
• The main objective of the IFSCA is to develop a strong global connect and focus on the needs of the Indian economy as well as to serve as an international financial platform for the entire region and the global economy as a whole.

About IOSCO

• The IOSCO is the international organization that brings together the world’s securities regulators, covering more than 95% of the world’s securities markets.
• It is also the global standard-setter for the securities sector.
• IOSCO works closely with the G20 and the Financial Stability Board (FSB) in setting up the standards for strengthening the securities markets.
• The IOSCO Objectives and Principles of Securities Regulation have been endorsed by FSB as one of the key standards for sound financial systems.

How would IOSCO membership benefit IFSCA?

• The membership of IOSCO would provide IFSCA with the platform to exchange information at the global and regional levels on areas of common interests.
• Further, the IOSCO platform would enable IFSCA to learn from the experiences and best practices of the regulators of other well established financial centres.
• The IOSCO’s membership is a significant milestone in connecting IFSCA with the regulators of securities markets globally.
• It would contribute immensely towards the development and regulation of the financial products, financial services and financial institutions at the Gujarat International Finance Tec-City International Financial Services Centre.