About 10-12 financial technology (fintech) companies have been accepted under the Innovative Sandbox of IFSCA’s (The International Financial Services Centre Authority) FinTech Incentive Scheme, 2022, according to Praveen Trivedi, Executive Director, IFSCA.
“Till now we have approved nearly 27 applications in FinTech scheme, of which nearly 10-12 have been moved to the innovation sandbox. These companies will be offering various financial services including KYC for offshore investments,” Trivedi said on the sidelines of the IVCA (Indian Private Equity and Venture Capital Association) Conclave on Tuesday.
Over 10 others have applied for the sandbox, he said, adding that IFSCA has been very proactive in acting swiftly on all the applications received, most of which pertain to the insuretech, banking and capital markets segments. IFSCA had introduced the sandbox in October 2020 along with other financial market regulators.
Budget announcements
With respect to the Budget announcement pertaining to SEZ powers being granted to IFSC, Trivedi said that work is already underway.
“More than 50 per cent work is already done; we are expecting this SEZ power will be transferred within 3-4 months. Maybe in this Budget session, when the Parliament convenes, they might introduce the Bill, otherwise in the next one,” he said.
On the other Budget announcement about setting up an international arbitration centre in GIFT City, Trivedi said IFSCA has submitted the draft proposal detailing the amendments required in the IFSCA Act, 2019.
Amendments proposed
IFSCA had set up a committee and discussed the matter with all stakeholders, including the Law Ministry, which suggested that the amendments be made to the IFSCA Act rather than the Indian Contract Act, 1872.
“It was realised that amending the Act might be difficult. Siince our Act is already a carve-out, the plan is to put those provisions in our Act. That is the final view taken by Law Ministry,” he said, adding that once the government reverts with its feedback, IFSCA will formalise the plan and submit the final proposal.
“We think, at most by June; because only the ground work is left — from our side, the work is over,” he said, adding that setting up the arbitration centre will allow entities the flexibility to choose their seat of arbitration and that of the country under whose jurisdiction they fall under.
