MEMBER OF PARLIAMENT, RAJYA SABHA
National Spokesperson and Head of IT Cell, BJD
The International Financial Services Centres Authority Bill, 2019, as passed by Lok Sabha
DR. AMAR PATNAIK (ODISHA): Sir, I will deal with this Bill on two aspects. One is the structural and the other one is the functional. On the structural aspect, of course, since this is going to be an inter-regulatory coordination, under Clause17 of the Bill, a performance review Committee is to be set up to review Authority's functioning. This Committee has two Members of the IFSC Authority itself. Wouldn't it create a situation of conflict of interest? It is because these two Members who would be actually exercising authority to coordinate the activities of inter-regulatory coordination would be in a position to exercise over-sight over their own performance. The Authority controls crucial facts/facets regarding the Committee's operation creating further scope for conflict of interest. Therefore, greater over-sight maybe required. Sir, secondly, one of the key aspects of this centre would be how to ensure contract enforcement in case of repudiation and what would be the dispute resolution mechanism. There is nothing in the Bill about this hing. On the functionality aspect, taking from what Shri Jairam Ramesh said about the GIFT, I think, until August, 2019, very recently, the position is, the network between the various stock exchanges has not taken place. Therefore, off shore trades to the GIFT has itself not taken place. Now, how to bring about this? Migration in volumes is very important for these exchanges. The second is on the rupee derivatives. I would like to know whether trading in rupee derivatives, as suggested by the RBI taskforce on off shore rupee markets, is going to take place because that has been a bottleneck in GIFT itself. The third one is, Dubai, Singapore, one of the pillars of their successful functioning, has strategic location. Now, relocation is not easy in GIFT, as hon. Member Shri Jairam Ramesh said. People have not come in to occupy their space. Market intermediaries and market participants ultimately make this particular authority successful or this particular centre successful. Unless this happens in the SEZs you can only have a structure, but it could probably not be delivering the kind of results that you want to get offshore trade into the country. Thank you, Sir.