finance

Public Comments Invited on IFSCA Draft Regulations for International Education Centers

Invitation for Public Comments on Draft IFSCA Regulations for International Branch Campuses and Offshore Education Centres

The International Financial Services Centres Authority (IFSCA) aims to cultivate a thorough and effective regulatory framework for the establishment of International Branch Campuses (IBC) and Offshore Education Centres (OEC) by foreign universities or institutions in the GIFT International Financial Services Centre (IFSC). In line with global best practices, IFSCA is inviting public comments on the proposed draft regulations.

Objectives of the Draft Regulations

The draft regulations intend to facilitate renowned foreign universities and educational institutions in establishing IBCs and OECs within the GIFT IFSC. The educational offerings will focus on fields such as Financial Management, FinTech, Science, Technology, Engineering, and Mathematics.

Key provisions include:

  • Establishment Options: Foreign universities may set up IBCs either as standalone entities or in consortium with other foreign universities. Collaborations with Indian universities, deemed universities, or institutions of national importance are also encouraged.
  • Collaborative Arrangements: The regulations promote partnerships with domestic educational institutions, encompassing shared responsibilities for course administration, infrastructure, and minimum capitalization contributions.
  • Registration: The proposed regulations will be the exclusive legal framework for the operation of foreign educational institutions in the GIFT IFSC.

Eligibility Criteria for Participation

To maintain high educational standards, only foreign universities ranked within the top 500 of the QS World University Rankings and distinguished foreign educational institutions will be permitted to establish IBCs and OECs.

Additional provisions detail that the degrees or diplomas issued from courses conducted in the IFSC will be recognized equivalently within the institution's home jurisdiction.

Draft Regulations Overview

The draft titled "International Financial Services Centres Authority (Setting up and Operation of International Branch Campuses and Offshore Education Centres) Regulations, 2022" encompasses several key objectives:

  • International Educational Hub: Position the GIFT IFSC as an international education center accommodating both Indian and foreign students.
  • Research Promotion: Foster research in areas like banking, insurance, and sustainable finance.
  • Quality Education Standards: Ensure the maintenance of world-class education and student interests.

Registration Process

  1. Application: Interested foreign universities must apply to the IFSCA for registration.
  2. Expert Review: Applications will be reviewed by an Expert Committee.
  3. Certificate of Registration: Upon approval, a certificate detailing various parameters will be issued, valid for three years.

Minimum Infrastructure Requirements

  • IBC Minimum Capital Infusion: USD 3 million.
  • OEC Minimum Capitalization: USD 1.5 million.
  • IBC Required Area: At least 10,000 square feet.
  • OEC Required Area: At least 5,000 square feet.

Compliance and Non-Permissible Activities

The IBC and OEC must not operate as promotional offices for their parent entities outside the GIFSC and must adhere to all applicable laws and regulations concerning quality assurance.

Safeguarding Student Interests

In case of course disruption, the IBC/OEC must provide alternatives for affected students, ensuring continuity of education through reallocation to corresponding courses offered by the parent entity.

Conclusion

The IFSCA encourages stakeholders and the public to engage actively in this consultation process by providing insights on the proposed regulations. This initiative is a significant step towards creating a robust educational ecosystem in the GIFT IFSC.