On 27th April 2022, the International Financial Services Centres Authority (IFSCA) issued a detailed Framework for FinTech Entity in the IFSCs (International Financial Services Centres).
The Framework aims to provide a boost to the establishment of a world-class FinTech Hub at GIFT IFSC. The framework proposes to cover:
(i) FinTech solutions resulting in new business models, applications, processes or products in areas/activities linked to financial services regulated by IFSCA.
(ii) Advanced/innovative technological solutions that aid and assist activities in relation to financial products, financial services and financial institutions.
The framework envisages a dedicated Regulatory Sandbox for FinTech products or solutions namely IFSCA FinTech Regulatory Sandbox and empowers IFSCA to grant Limited Use Authorization within FinTech Regulatory Sandbox to the eligible financial technology entities in IFSC.
Further, it also enables some class/categories of technology companies to have:
(i) A deployable advanced/innovative technology solution that aids and assists activities in relation to financial products, financial services, financial institutions
(ii) Credible track record including financial performance, to obtain Direct Entry (Authorization by IFSCA) without entering into the Regulatory Sandbox.
The framework also includes a Regulatory Referral mechanism which shall be governed as per the provisions of the Memorandum of Understanding (MoU) or collaboration or special arrangement between IFSCA and corresponding overseas Regulat