Date: 2015-03-23Category: Extra OrdinaryState: Union GovernmentCountry: India
In exercise of the powers conferred by section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank makes the following regulations relating to financial institutions set up in International Financial Services Centres
**Executive Summary:**
This document outlines regulations for financial institutions operating within International Financial Services Centres (IFSC) in India, as per the Foreign Exchange Management Act of 1999. It defines key terms and specifies the operational parameters for these institutions. The regulations came into force on the date of their publication in the Official Gazette (March 23, 2015).
**Key Points / Main Content:**
* **Short Title and Commencement:**
* The regulations are called the "Foreign Exchange Management International Financial Services Centre Regulations, 2015."
* They came into effect upon publication in the Official Gazette.
* **Definitions:**
* **Act:** Refers to the Foreign Exchange Management Act, 1999.
* **Financial Institution:** Includes companies, firms, associations of persons, or any artificial juridical person engaged in financial services or transactions, including banks, non-banking financial companies, insurance companies, and others specified by the Government of India or a Financial Regulatory Authority.
* **Financial Service:** Activities a financial institution is allowed to carry out as specified in the respective Act of the Parliament, by the Government of India, or by any Regulatory Authority.
* **Financial Transaction:** Making or receiving payments, issuing financial instruments, transferring securities, or acknowledging debt.
* **FMC:** The Forward Market Commission established under the Forward Contracts Regulation Act, 1952.
* **IFSC:** International Financial Services Centre as defined in Section 2(q) of the Special Economic Zones Act, 2005.
* **IRDA:** The Insurance Regulatory and Development Authority established under the Insurance Regulatory and Development Authority Act, 1999.
* **PFRDA:** The Pension Fund Regulatory and Development Authority established under the Pension Fund Regulatory and Development Authority Act, 2013.
* **Regulatory Authority:** Includes RBI, SEBI, IRDA, PFRDA, FMC, or any statutory authority regulating a financial institution under Indian laws.
* **SEBI:** The Securities and Exchange Board of India established under the Securities and Exchange Board of India Act, 1992.
* **Operational Guidelines:**
* Financial institutions or their branches in an IFSC, recognized by the Government of India or a Regulatory Authority, are treated as persons resident outside India.
* The concerned Regulatory Authority determines the foreign currency and persons (resident or non-resident) with whom these institutions can conduct business.
* Unless specified otherwise, other regulations do not apply to financial institutions or branches in an IFSC, subject to Section 13 of the Act and any directives from the Reserve Bank of India.
**Impact Analysis:**
**Financial Institutions in IFSC:**
* *Impact:* Governed by these specific regulations regarding foreign exchange management, treated as persons resident outside India, and must adhere to the guidelines set by the Regulatory Authority for conducting business.
* *Action Required:* Understand and comply with the Foreign Exchange Management International Financial Services Centre Regulations, 2015, and any further directives from the relevant Regulatory Authority.
**Regulatory Authorities (RBI, SEBI, IRDA, PFRDA, FMC):**
* *Impact:* Responsible for regulating and overseeing the operations of financial institutions within the IFSC, including defining the scope of permissible business activities and ensuring compliance.
* *Action Required:* Exercise regulatory oversight to ensure financial institutions in IFSC adhere to the new regulations and other applicable laws.
**Government of India:**
* *Impact:* Has the authority to recognize financial institutions within the IFSC and may specify other entities as financial institutions for the purpose of these regulations.
* *Action Required:* Continue to provide necessary recognition and guidance to facilitate the smooth functioning of IFSCs.
Key Entities Referenced
Foreign Exchange Management Act, 1999: This act provides the legal framework for the management of foreign exchange in India.
International Financial Services Centre: A special economic zone designed to attract foreign investment and provide financial services to non-residents and residents, often with more liberal regulations.
Foreign Exchange Management International Financial Services Centre Regulations, 2015: Regulations pertaining to financial institutions operating within International Financial Services Centres (IFSCs).
Reserve Bank of India: The central bank of India, responsible for regulating the banking system and managing foreign exchange.
Securities and Exchange Board of India: The regulator of the securities market in India.
Insurance Regulatory and Development Authority: The regulator of the insurance industry in India.
Pension Fund Regulatory and Development Authority: The regulator of pension funds in India.
Forward Market Commission: An authority established under the Forward Contracts Regulation Act, 1952, regulating forward markets (now merged with SEBI).
jftLVªh laö Mhö ,yö&33004@99 REGD. NO. D. L.-33004/99
vlk/kj.k
EXTRAORDINARY
Hkkx II—[k.M 3—mi&[k.M (i)
PART II—Section 3—Sub-section (i)
izkf/dkj ls izdkf'kr
PUBLISHED BY AUTHORITY
la- 167] ubZ fnYyh] lkseokj] ekpZ 23] 2015@pS=k 2] 1937
No. 167] NEW DELHI, MONDAY, MARCH 23, 2015/CHAITRA 2, 1937
भभभभााााररररततततीीीीयययय (cid:8)(cid:8)(cid:8)(cid:8)ररररज़ज़ज़ज़वववव (cid:11)(cid:11) (cid:11)(cid:11)बबबबकक(cid:13)(cid:13)कक(cid:13)(cid:13)
((((ििििववववददददशशेेशशेे ीीीी मममम(cid:10)(cid:10)ुु(cid:10)(cid:10)ुु ाााा ििििववववभभभभाााागगगग))))
((((कककक(cid:15)(cid:15)(cid:15)(cid:15)(cid:10)(cid:10)(cid:10)(cid:10)ीीीीयययय ककककााााययययाााालल(cid:17)(cid:17)लल(cid:17)(cid:17) यययय))))
अअअअििििधधधधससससचचूूचचूू ननननाााा
मुंबई, 2 माच,(cid:4) 2015
ििििववववददददेशेशेशेशीीीी मममम(cid:10)(cid:10)ुु(cid:10)(cid:10)ुु ाााा (cid:12)(cid:12)(cid:12)(cid:12)बबबबधधंंधधंं ((((अअअअततंंततंं रररररररराााा(cid:19)(cid:19)(cid:19)(cid:19)ीीीीयययय ििििवववव(cid:21)(cid:21)(cid:21)(cid:21)ीीीीयययय ससससववेेववेे ााााएएएएं ं ं ं कककक(cid:25)(cid:25)(cid:25)(cid:25)(cid:10)(cid:10)(cid:10)(cid:10))))) ििििववववििििननननययययममममााााववववललललीीीी,,,, 2222000011115555
ससससाााा.ककककाााा.ििििनननन. 222211118888 ((((अअअअ))))....————िवदेशी मु(cid:13)ा (cid:14)बंध अिधिनयम 1999 (1999 का 42) क(cid:22) धारा 47 (cid:24)ारा (cid:14)द(cid:25) शि(cid:26)य(cid:27) का
(cid:14)योग करत े (cid:31)ए भारतीय "रज़व(cid:4) ब$क अतं ररा%ीय िव(cid:25)ीय सेवाएँ क((cid:13) म ( )थािपत िव(cid:25)ीय सं)था, हते ु िन.न िलिखत िविनयम
बनाता ह ै; अथा(cid:4)त ्:—
1111.... ससससंिंिंिंि(cid:26)(cid:26)(cid:26)(cid:26)(cid:27)(cid:27)(cid:27)(cid:27) ननननाााामममम एएएएवववव ंंंं(cid:12)(cid:12)(cid:12)(cid:12)ाााारररर(cid:29)(cid:29)(cid:29)(cid:29)भभभभ ::::————
i. ये िविनयम िवदेशी मु(cid:13)ा (cid:14)बंध (अंतररा%ीय िव(cid:25)ीय सेवाएं क((cid:13)) िविनयमावली, 2015 कहलाएगं े ।
ii. वे सरकारी राजप1 म ( उनके (cid:14)काशन क(cid:22) तारीख स े लागू ह(cid:27)गे ।
2222.... पपपप ररररभभभभााााषषषषााााएएएएँ ँ ँ ँ ::::————
इस िविनयमावली म( जब तक 8क (cid:14)संग से अ9यथा अपेि:त न हो -
(ए) ‘अिधिनयम’ का अथ (cid:4) िवदेशी म(cid:13)ु ा (cid:14)बंध अिधिनयम, 1999 (1999 का 42) होगा ;
(बी) ‘िव(cid:25)ीय सं)था’ म( िन. निलिखत शािमल ह(cid:27)ग;े
(i) कोई कंपनी, अथवा
(ii) कोई फ़म,(cid:4) अथवा
1351 GI/2015 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(iii) लोग(cid:27) का कोई एसोिशएशन (AOP) अथवा =ि(cid:26)य(cid:27) का कोई िनकाय (BOI), चाह े िनगिमत हो
अथवा नह>, अथवा
(iv) पूव?ि@लिखत Aेिणय(cid:27) म े न आन े वाला कोई अनैसEगक िविधक =ि(cid:26) (ARJP) जो िव(cid:25)ीय सेवाएं देन े
अथवा िव(cid:25)ीय लने देन करन े म( संलF हो ।
####पपपप$$$$ीीीीककककररररणणणण:::: इस उप-िविनयम के (cid:14)योजन के िलए, और उपयु(cid:4)(cid:26) सामा9यता को :ित प(cid:31)चं ाए िबना, “िव(cid:25)ीय सं)था”
अिभ=ि(cid:26) म( ब$क, गैर-ब$Hकग िव(cid:25)ीय कंपिनयाँ, बीमा कंपनीयां, Iोकरेज़ फ़म,J मचJ9ट ब$क, िनवेश ब$क, प(शन फ़ंड, .यूचुअल
फ़ंड, M)ट, िविनमय गृह, िNलयOरग हाउस और भारत सरकार अथवा िव(cid:25)ीय िविनयामक (cid:14)ािधकारी (cid:24)ारा िविनPदQ कोई
अ9य सं)था शािमल होगी।
(सी) ‘िव(cid:25)ीय सेवा’ का अथ (cid:4) 8कसी िव(cid:25)ीय सं)था (cid:24)ारा क(cid:22) जान े वाली उन गितिविधय(cid:27) स े ह ै जो ससं द के संबंिधत
अिधिनयम अथवा भारत सरकार अथवा संबंिधत िव(cid:25)ीय सं)था को िविनयिमत करने के िलए अिधकार
(cid:14)ाR 8कसी िविनयामक (cid:14)ािधकारी (cid:24)ारा तत् Sप म( िविनPदQ/अनुमत क(cid:22) गई हो।
(डी) ‘िव(cid:25)ीय लेनदेन’ का अथ(cid:4) 8कसी =ि(cid:26) को भगु तान करन े अथवा उसके खाते म ( धन जमा करन,े अथवा 8कसी
=ि(cid:26) के िलए, आदेश (cid:24)ारा अथवा क(cid:22) ओर से भगु तान (cid:14)ाR करन,े अथवा आहरण करन े अथवा 8कसी
िविनयम िबल अथवा (cid:14)ोिमसरी नोट को जारी करने अथवा परUािमत करन,े अथवा 8कसी (cid:14)ितभूित को
अंत"रत करने अथवा 8कसी ऋण को (cid:14)ाR करन े से ह।ै
(ई) “एफएमसी” का अथ (cid:4) वायदा संिवदा (िविनयम) अिधिनयम, 1952 (1952 का 74) के अतं ग(cid:4)त )थािपत
वायदा बाजार आयोग से ह।ै
(एफ़) ‘अंतररा%ीय िव(cid:25)ीय सेवाएं क((cid:13)’ अथवा आईएफ़एससी का अथ (cid:4) िवशेष आEथक :े1 अिधिनयम, 2005
(2005 का 28) क(cid:22) धारा 2 (Nय)ू म ( िनिहत अथ (cid:4) से ह ै ।
(जी) ‘आईआरडीए’ का अथ (cid:4) बीमा िविनयामक और िवकास (cid:14)ािधकरण अिधिनयम, 1999 (1999 का 41) के
तहत )थािपत बीमा िविनयामक और िवकास (cid:14)ािधकरण से ह ै।
(एच) ‘पीएफ़आरडीए’ का अथ (cid:4) प(शन फ़ंड िविनयामक और िवकास (cid:14)ािधकरण अिधिनयम, 2013 (2013 का 23)
के अतं ग(cid:4)त )थािपत पश( न फ़ंड िविनयामक और िवकास (cid:14)ािधकरण स ेह ै।
(आई) ‘िविनयामक (cid:14)ािधकरण’ म( भारतीय "रज़व(cid:4) ब$क (आरबीआई), भारतीय (cid:14)ितभूित और िविनमय बोड(cid:4)
(सेबी), बीमा िविनयामक और िवकास (cid:14)ािधकरण(आईआरडीए), प(शन िनिध िविनयामक और िवकास
(cid:14)ािधकरण (PFRDA), वायदा बाजार आयोग (एफ़एमसी) अथवा भारतीय कानून के अंतगत(cid:4) 8कसी
िव(cid:25)ीय सं)था को िविनयिमत करने के अिधकार (cid:14)ाR (cid:14)ािधकृत सांिविधक (cid:14)ािधकरण शािमल ह।$
(जे) 'सेबी' का अथ (cid:4) भारतीय (cid:14)ितभूित और िविनमय बोड(cid:4) अिधिनयम, 1992 (1992 का 15) के अतं गत(cid:4)
)थािपत भारतीय (cid:14)ितभूित और िविनमय बोड(cid:4) से ह।ै
(के) इन िविनयम(cid:27) म( (cid:14)यु(cid:26) शYद(cid:27) और अिभ=ि(cid:26)य(cid:27) िजनका अथ (cid:4) इनम ( िविनPदQ नह> 8कया गया ह,ै उनका
अथ (cid:4) वही होगा जो संबंिधत अिधिनयम(cid:27) म( उ9ह े8दया गया ह।ै
3. अंतररा%ीय िव(cid:25)ीय सेवाएँ क((cid:13) म ( )थािपत कोई िव(cid:25)ीय सं)था अथवा िव(cid:25)ीय सं)था क(cid:22) शाखा और भारत
सरकार अथवा िविनयामक (cid:14)ािधकारी (cid:24)ारा ऐसी अनुमत/मा9यता(cid:14)ाR सं)था को भारत से बाहर के िनवासी =ि(cid:26) के Sप म(
माना जाएगा ।
4. कोई िव(cid:25)ीय सं)था अथवा िव(cid:25)ीय सं)था क(cid:22) शाखा 8कसी ऐसी िवदेशी मु(cid:13)ा म ( और 8कसी िनवासी अथवा
अिनवासी =ि(cid:26) अथवा अ9य के साथ संबि9धत िविनयामक (cid:14)ािधकारी (cid:24)ारा 8कए गए िनधा(cid:4)रणानुसार कारोबार कर
सकती ह ै ।¹Hkkx IIµ[k.M 3(i)º Hkkjr dk jkti=k % vlk/kj.k 3
5. उ(cid:26) अिधिनयम क(cid:22) धारा 1(3) के उपबंध(cid:27) के अधीन और इस िविनयमावली अथवा 8कसी अ9य िविनयमावली
अथवा समय----समय पर "रज़व(cid:4) ब$क (cid:24)ारा 8दये गए िनदेश(cid:27) म ( उपबंिधत अ9य छूट के िसवाय 8कसी अ9य िविनयमावली म (
अंतEवQ शत\ अंतररा%ीय िव(cid:25)ीय सेवा क((cid:13) म( )थािपत 8कसी ऐसी िव(cid:25)ीय सं)था अथवा िव(cid:25)ीय सं)था क(cid:22) शाखा पर लागू नह>
ह(cid:27)गी ।
[सं. फेमा/339/2015-आरबी]
बी. पी. कानूनगो,,,, (cid:14)धान मु]य महा(cid:14)ब9धक
RESERVE BANK OF INDIA
(Foreign Exchange Department)
(CENTRAL OFFICE)
NOTIFICATION
Mumbai, the 2nd March, 2015
Foreign Exchange Management (International Financial Services Centre) Regulations, 2015
G.S.R. 218(E).—In exercise of the powers conferred by section 47 of the Foreign Exchange
Management Act, 1999 (42 of 1999), the Reserve Bank makes the following regulations relating to financial
institutions set up in International Financial Services Centres, namely:-
1. Short title and commencement:-
i. These regulations may be called the Foreign Exchange Management (International Financial
Services Centre) Regulations, 2015.
ii. They shall come into force from the date of their publication in the Official Gazette.
2. Definitions:-
In these Regulations unless the context requires otherwise Ñ
(a) ‘Act’ shall mean the Foreign Exchange Management Act, 1999 (42 of 1999);
(b) ‘Financial Institution’ shall include
(i) a company, or
(ii) a firm, or
(iii) an association of persons or a body of individuals, whether incorporated or not, or
(iv) any artificial juridical person, not falling within any of the preceding categories
engaged in rendering financial services or carrying out financial transactions.
Explanation: For the purpose of this sub-regulation, and without any loss of generality of the above, the
expression ‘financial institution’ shall include banks, non-banking financial companies, insurance companies,
brokerage firms, merchant banks, investment banks, pension funds, mutual funds, trusts, exchanges, clearing
houses, and any other entity that may be specified by the Government of India or a Financial Regulatory
Authority.
(c) ‘Financial service’ shall mean activities a financial institution is allowed to carry out as
specified in the respective Act of the Parliament or by the Government of India or by any
Regulatory Authority empowered to regulate the concerned financial institution.
(d) ‘Financial transaction’ shall mean making any payment to, or for the credit of any person, or
receiving any payment for, by order or on behalf of any person, or drawing, issuing or
negotiating any bill of exchange or promissory note, or transferring any security or
acknowledging any debt.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(e) ‘FMC’ shall mean the Forward Market Commission established under the Forward Contracts
(Regulation) Act, 1952 (74 of 1952).
(f) ‘International Financial Services Centre’ or ‘IFSC’ shall have the same meaning given in
Section 2 (q) of the Special Economic Zones Act, 2005 (28 of 2005).
(g) ‘IRDA’ shall mean mean the Insurance Regulatory and Development Authority established
under the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).
(h) ‘PFRDA’ shall mean the Pension Fund Regulatory and Development Authority established
under the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013).
(i) ‘Regulatory Authority’ shall include Reserve Bank of India (RBI), Securities Exchange Board
of India (SEBI), Insurance Regulatory Development Authority (IRDA), Pension Fund
Regulatory and Development Authority (PFRDA_, Forward Market Commission (FMC) or any
other statutory authority empowered to regulate a financial institution under the Indian laws.
(j) 'SEBI' shall mean the Securities and Exchange Board of India established under the Securities
and Exchange Board of India Act, 1992 (15 of 1992).
(k) The words and expressions used but not specified in these Regulations shall have the same
meanings respectively assigned to them in the Act.
3. Any financial institution or branch of a financial institution set up in the IFSC and
permitted/recognised as such by the Government of India or a Regulatory Authority shall be treated as a
person resident outside India.
4. A financial institution or branch of a financial institution shall conduct such business in such
foreign currency and with such persons, whether resident or otherwise, as the concerned Regulatory Authority
may determine.
5. Subject to the provisions of Section 1(3) of the Act, and save as otherwise provided in these
Regulations or any other Regulations or directed by the Reserve Bank of India from time to time, nothing
contained in any other regulations shall apply to a financial institution or branch of a financial institution set
up in an IFSC.
[No. FEMA/339/2015-RB]
B. P. KANUNGO, Principal Chief General Manager
Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.