RBI Governor Urjit Patel on Wednesday made a case for setting up a unified regulator and a world class legal framework for International Financial Services Centres (IFSCs) to expeditiously deal with dispute resolution and other issues.
Speaking at the Vibrant Gujarat Global Summit, Patel said a high level working group needs to be set up to look into the existing laws governing financial contracts in India.
“Based on the review, a world class legal framework for financial contracts in GIFT could be enabled, either by appropriately amending the existing laws governing financial contracts or enacting a fresh law,” he said.
GIFT (Gujarat International Finance Tec-City) has been set up by the state government as India’s first IFSC that brings together world class infrastructure, connectivity, people and technology on a single platform for businesses across the world.
IFSC at GIFT City is probably the first such centre to be launched after the 2008 global financial crisis.
An IFSC should have a legal structure that is sufficiently supportive of the swift resolution of conflicts and disputes arising from the settlement or enforcement of complex international financial contracts, Patel said.