## Report on the International Financial Services Centres Authority Finance Company Amendment Regulations, 2022
**1. Executive Summary:**
This report analyzes the International Financial Services Centres Authority (IFSCA) Finance Company Amendment Regulations, 2022, based solely on the provided official gazette notification. This amendment to the International Financial Services Centres Authority Finance Company Regulations, 2021 (Principal Regulations) primarily focuses on clarifying registration requirements, revising the structure of Finance Companies and Finance Units, redefining permitted core and non-core activities, and granting the Authority power to address difficulties and relax strict enforcement. The key findings are a refined regulatory framework intended to provide greater clarity and flexibility for Finance Companies and Finance Units operating within International Financial Services Centres (IFSCs).
**2. Introduction:**
The purpose of this report is to provide an informative overview and analysis of the International Financial Services Centres Authority Finance Company Amendment Regulations, 2022 (hereinafter referred to as "the Amendment Regulations"), as published in the Gazette of India. This analysis is based exclusively on the provided policy text.
**3. Policy Overview:**
* This document amends the International Financial Services Centres Authority Finance Company Regulations, 2021 (Principal Regulations).
* The core objective of this amendment, as inferred from the text, is to refine and clarify the regulatory framework for Finance Companies and Finance Units operating within IFSCs, potentially to attract more entities and facilitate a wider range of financial activities. The amendments focus on permissible activities, registration processes, and the operational structure of these entities.
**4. Background and Rationale:**
This document is an amendment. Based on the provided text, the likely reasons for this specific amendment include:
* **Clarifying Registration Requirements:** The insertion of a proviso and explanation under regulation 3(1) suggests a need to clarify when a new registration is required versus when existing authorizations are sufficient, potentially addressing confusion or overlap in the original regulations.
* **Refining Operational Structure:** The substitution of regulations 3(2), 3(3), and 3(5) indicates a desire to adjust the permissible structures for Finance Companies and Units (subsidiary, joint venture, newly incorporated company, or other forms) and the requirements for them, based on their parent's regulatory standing.
* **Redefining Permitted Activities:** Modifying regulation 5, specifically by omitting clause i and substituting clauses ii and iii, implies a re-evaluation and clarification of core and non-core activities to better align with the evolving needs of IFSCs.
* **Addressing Practical Difficulties:** The insertion of regulation 10A, granting the Authority power to remove difficulties and relax strict enforcement, suggests a recognition that unforeseen challenges may arise in implementing the regulations, requiring a mechanism for flexible interpretation and application.
**5. Key Provisions / Changes:**
The following key changes are introduced by the Amendment Regulations:
* **Regulation 3(1): Registration Requirement Clarification:** A proviso and explanation are added clarifying that entities with existing authorizations may not need fresh registration for the same permissible activity under these regulations. **Effect:** Reduces regulatory burden for existing entities while ensuring compliance for new activities.
* **Regulation 3(2): Finance Company Structure:** This sub-regulation is substituted, allowing Finance Companies to be set up as subsidiaries, joint ventures, newly incorporated companies, "or in any other form as may be specified by the Authority." A proviso requires a No-Objection Certificate (NOC) from the home country regulator if the parent of a Finance Company is carrying out regulated financial activity in its home jurisdiction. **Effect:** Provides flexibility in organizational structure while ensuring regulatory oversight.
* **Regulation 3(3): Finance Unit Structure:** The sub-regulation is substituted allowing finance units to be set up if the applicant is an incorporated entity in its home jurisdiction. It also mandates an NOC from the home regulator for undertaking core activities unless setting up a Global/Regional Corporate Treasury Centre. **Effect:** Ensures only regulated entities undertake core activities, except for treasury centers.
* **Regulation 3(5): Registration Compliance Conditions:** The sub-regulation is substituted. It discusses the minimum owned funds requirements for Finance Companies and Finance Units seeking registration, depending on the activities undertaken. **Effect:** Sets capital adequacy standards for Finance Companies and Finance Units.
* **Regulation 5(1)(i): Activity Omission:** Clause i of subregulation 1 is omitted. Based on the text, it is impossible to determine the activity it refers to. **Effect:** Unknown without the original regulation text, but it removes a previously listed permissible activity.
* **Regulation 5(1)(ii) and (iii): Permitted Core and Non-Core Activities:** These clauses are substituted, redefining the scope of permitted core (lending, factoring, investments, derivatives, treasury centres, and activities permitted by Authority) and non-core activities (merchant banking, authorized person, registrar, trusteeship services, investment advisory, portfolio management, operating lease, trade financing services platform, distribution of financial products, trading and clearing members, asset management support, facilitators and other activities permitted by Authority without customer interface). **Effect:** Clarifies and potentially expands the range of activities permissible for Finance Companies and Finance Units.
* **Regulation 5(2): Investment Activities for Non-Core Entities:** This subregulation is substituted. It now permits entities registered for only non-core activities to undertake investment activities for liquidity and balance sheet management without being classified as core activities. **Effect:** Provides flexibility for non-core entities to manage their finances.
* **Regulation 5(3A): Non-Core Activities Subject to Frameworks:** A new subregulation is inserted, stating that undertaking any non-core activity is subject to the respective framework specified by the Authority. **Effect:** Ensures adherence to specific regulations for each non-core activity.
* **Regulation 10A: Power to Remove Difficulties:** This new regulation grants the Authority power to issue clarifications and relax strict enforcement of regulations for the development of the financial market. **Effect:** Provides flexibility in implementing the regulations and addressing unforeseen challenges.
* **Schedule Substitution:** The schedule is substituted, redefining minimum owned fund requirements for different categories of activities. It sets requirements for (1) undertaking noncore activities only, (2) undertaking core activities with or without noncore activities and (3) undertaking activities of Global/Regional Corporate Treasury Centres. **Effect:** The updated schedule clarifies and potentially adjusts the capital requirements for different types of Finance Companies and Finance Units.
**6. Target Audience and Stakeholders:**
Based on the provided text, the primary target audience and stakeholders directly affected by these changes are:
* Existing and prospective Finance Companies and Finance Units operating or intending to operate within International Financial Services Centres (IFSCs).
* Entities considering establishing a Finance Company or Finance Unit within an IFSC.
* Home country regulators of parent entities of Finance Companies and Finance Units.
* The International Financial Services Centres Authority (IFSCA) itself.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The International Financial Services Centres Authority (IFSCA) is responsible for implementing and enforcing these regulations.
* **Timelines:** The Amendment Regulations came into force on the date of their publication in the Official Gazette (July 1, 2022).
* **Procedures:** Entities seeking registration or undertaking specific activities must comply with the procedures outlined in the Principal Regulations (as amended) and any relevant frameworks specified by the Authority. The Amendment Regulations emphasize the importance of obtaining necessary No-Objection Certificates (NOCs) from home country regulators where applicable.
* **Related to specific changes:** The amendment related to non-core activities is subject to the provisions of the respective framework specified by the Authority for that particular activity.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these specific changes introduced by the Amendment Regulations include:
* **Increased Clarity and Reduced Ambiguity:** The clarifications regarding registration requirements and permitted activities should reduce confusion and streamline the regulatory process.
* **Greater Flexibility:** The revised regulations regarding organizational structure and permissible activities provide greater flexibility for Finance Companies and Finance Units to tailor their operations to their specific needs.
* **Enhanced Regulatory Oversight:** The requirement for No-Objection Certificates from home country regulators strengthens regulatory oversight and promotes cross-border cooperation.
* **Facilitation of a Wider Range of Financial Activities:** The redefined scope of permitted core and non-core activities may encourage the development of new and innovative financial products and services within IFSCs.
* **Efficient Implementation:** The power granted to the Authority to remove difficulties and relax strict enforcement should ensure the smooth and effective implementation of the regulations.
* **Clear Minimum Owned Fund Requirements**: The new schedule clarifies the minimum owned fund requirements for Finance Companies and Finance Units.
**9. Conclusion:**
The International Financial Services Centres Authority Finance Company Amendment Regulations, 2022, represent a significant refinement of the regulatory framework governing Finance Companies and Finance Units within IFSCs. The amendments aim to provide greater clarity, flexibility, and regulatory oversight, ultimately fostering the growth and development of these financial centers. The key changes detailed in this report will directly impact existing and prospective Finance Companies and Finance Units, as well as their home country regulators.
Key Entities Referenced
International Financial Services Centres Authority: A regulatory authority established to regulate financial services centers.
International Financial Services Centres Authority Finance Company Amendment Regulations, 2022: The name of the amended regulations.
International Financial Services Centres Authority Act, 2019: The act that grants powers to the International Financial Services Centres Authority.
International Financial Services Centres Authority Finance Company Regulations, 2021: The principal regulations being amended.
Finance Company: An entity that can be set up either as a subsidiary or a joint venture, or as a newly incorporated company under the Companies Act, 2013, or in any other form as may be specified by the Authority from time to time.
Companies Act, 2013: Law regarding company law in India
Finance Unit: A financial entity that can be set up if the applicant is an incorporated entity in its home jurisdiction.
GlobalRegional Corporate Treasury Centres: A type of Finance Unit that undertakes treasury activities or treasury services.
Gandhinagar, Gujarat: The location where the notification was issued.
Official Gazette: The official publication in which the regulations are published.
Schedule: Schedule defining Activity and Minimum Owned Fund Requirement in Exempted Regulations
INJETI SRINIVAS: Chairperson of the International Financial Services Centres Authority
New Delhi: Location of the Dte. of Printing at Government of India Press and Controller of Publications
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-जी.जxxे.x-GअI.D-E0x5x0x 72022-237071
CG-GJ-E-05072022-237071
ऄसाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 337] नइ कदल्ली, सोमिार, जुलाइ 4, 2022/अषाढ़ 13, 1944
No. 337] NEW DELHI, MONDAY, JULY 4, 2022/ASHADHA 13, 1944
ऄतरराष्ट्रीय जित्तीय सेिा केन्द्र प्राजधकरण
ऄजधसचू ना
गांधीनगर, 1 जलु ाइ, 2022
ऄतं तराष्ट्रीय जित्तीय सिे ा केन्द्र प्राजधकरण (जित्त कंपनी) (सिं ोधन) जिजनयम, 2022
अइ.एफ.एस.सी.ए./2022-23/जी.एन./रेग्य ु 026.—ऄंतरराष्ट्रीय जित्तीय सेिा केन्द्र प्राजधकरण, ऄंतरराष्ट्रीय
जित्तीय सेिा केन्द्र प्राजधकरण ऄजधजनयम, 2019 की धारा 12 की ईपधारा (1) और धारा 13 की ईपधारा (1) के साथ पठठत
धारा 28 की ईपधारा (1) द्वारा प्रदत्त िजियों का प्रयोग करते हुए, ऄंतरराष्ट्रीय जित्तीय सेिा केन्द्र प्राजधकरण (जित्त कंपनी)
जिजनयम, 2021 (जजन्द्ह ें आसमें आसके पश्चात् मूल जिजनयम कहा गया ह)ै में और संिोधन करने के जलए जनम्नजलजखत जिजनयम
बनाता ह,ै ऄथाात ्:-
1. (1) आन जिजनयमों का संजिप्त नाम ऄंतरराष्ट्रीय जित्तीय सेिा केन्द्र प्राजधकरण (जित्त कंपनी) (संिोधन) जिजनयम,
2022 ह ै।
(2) य ेराजपत्र में ईनके प्रकािन की तारीख से प्रिृत्त होंग े।
2. मूल जिजनयमों के जिजनयम 3 के ईप-जिजनयम (1) के नीच े एक परन्द्तुक और स्ट्पष्टीकरण ऄंतःस्ट्थाजपत ककया
जाएगा, ऄथाात:् -
“परन्द्त ु ऐसी ककसी आकाइ द्वारा, जजसका अिय ऐस े ऄनुज्ञेय कियाकलापों को चलाना ह,ै जो ऐस े ढांचे/जिजनयमों के
ऄंतगता नहीं अते ह ैं जजनके ऄधीन ईसे आससे पूिा रजजस्ट्रीकरण या प्राजधकार, यकद कोइ ह,ै मजं ूर ककया गया था, आन
जिजनयमों के ऄधीन रजजस्ट्रीकरण प्रमाणपत्र ऄजभप्राप्त ककया जाना अिश्यक होगा ।
स्ट्पष्टीकरण: ऐसी आकाइ से, जजसने प्राजधकरण द्वारा जारी या ऄजधसूजचत ककसी ऄन्द्य ढांच े या जिजनयमों के ऄधीन
4470 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
ककसी जिजनर्ददष्ट कियाकलाप के जलए कोइ रजजस्ट्रीकरण प्रमाणपत्र या प्राजधकार-पत्र ऄजभप्राप्त ककया ह,ै ईसी
कियाकलाप को चलान े के जलए आन जिजनयमों के जलए नए जसरे से रजजस्ट्रीकरण की इप्सा करने की ऄपेिा नहीं होगी
यकद िह आन जिजनयमों के जिजनयम 5 के ऄधीन एक ऄनुज्ञेय कियाकलाप ह ै ।”
3. मूल जिजनयमों के जिजनयम 3 म,ें ईप-जिजनयम (2), (3) और (5) के स्ट्थान पर जनम्नजलजखत रखा जाएगा, ऄथाात्:-
“(2) कोइ जित्त कंपनी, कंपनी ऄजधजनयम, 2013 के ऄधीन सहायक कंपनी या संयुि ईद्यम के रूप में या नए रूप में
जनगजमत कंपनी के रूप म ें या ककसी ऐसे ऄन्द्य रूप में, जो प्राजधकरण समय-समय पर जिजनर्ददष्ट करे, स्ट्थाजपत की जा
सकती ह:ै
परन्द्त ु यकद ककसी जित्त कंपनी की कोइ मूल कंपनी ऄपन े गृह ऄजधकार-िेत्र म ें कोइ जिजनयजमत जित्तीय
कियाकलाप चला रही ह ैतो िह अइ.एफ.एस.सी. म,ें जहां कहीं भी लागू हो, कोइ जित्त कंपनी स्ट्थाजपत करने के जलए
ऄपन ेगृह देि के जिजनयामक से ऄनापजत्त प्रमाणपत्र ऄजभप्राप्त करेगी ।”
“(3) कोइ जित्तीय यूजनट तब स्ट्थाजपत ककया जा सकता ह ै यकद अिेदक ऄपने गृह ऄजधकार-िेत्र में कोइ जनगजमत
आकाइ ह:ै
परन्द्त ु आन जिजनयमों में यथा-जिजनर्ददष्ट कोर कियाकलाप करने के जलए कोइ जित्त यूजनट केिल तभी स्ट्थाजपत
ककया जा सकता ह ै यकद अिदे क, जो कक ऄपन े गृह ऄजधकार-िेत्र में एक जनगजमत आकाइ ह,ै जित्तीय सेिाओं के
कारबार में लगा हुअ ह ै और िह ऄपन े गृह ऄजधकार-िेत्र में जित्तीय िेत्र के ककसी जिजनयामक द्वारा जिजनयजमत ह ै
तथा ईसन े गृह जिजनयामक स े अइ.एफ.एस.सी. म,ें जहां कहीं भी लाग ू हो, एक जित्त यूजनट स्ट्थाजपत करन े के जलए
ऄनापजत्त प्रमाणपत्र ऄजभप्राप्त ककया ह:ै
परन्द्त ु यह और कक ईपयुाि परन्द्तुक के ऄधीन अन े िाली ित ें ऐसी जनगजमत आकाइ को लाग ू नहीं होंगी जो
प्राजधकरण द्वारा जिजनर्ददष्ट सुसंगत जिजनयामक ढांचे के ऄनुसार खजाना(रेजरी) कियाकलाप या खजाना सेिाएं करन े
के जलए अइ.एफ.एस.सी. में जित्त यूजनट के रूप में िैजिक(ग्लोबल)/िेत्रीय जनगजमत खजाना केन्द्र स्ट्थाजपत करने की
िांछा करती ह”ै
“(5) कोइ जित्त कंपनी या कोइ जित्त यूजनट, जो रजजस्ट्रीकरण की इप्सा करता ह,ै जनम्नजलजखत ितों का ऄनुपालन
करेगा:
(i) ‘जित्त कंपनी’ के रूप म ें रजजस्ट्रीकरण की इप्सा करन े िाली अिेदक के पास आन जिजनयमों के ऄधीन जिजभन्न
प्रिगों के ऄधीन िगीकृत कियाकलाप(कियाकलापों) के प्रिगा या कियाकलापों के संयोजन के अधार पर
न्द्यूनतम स्ट्िाजमत्िाधीन जनजध होगी िह और ईस े बनाए रखगे ी और आन जिजनयमों के ऄधीन ऄनुसूची म ें या
प्राजधकरण द्वारा जारी ककसी सुसंगत जिजनयामक ढांचे के ऄधीन, जो भी लागू हो, जिजनर्ददष्ट प्रत्येक व्यजष्टक
कियाकलाप या कियाकलापों के प्रिग ा के जलए जिजहत न्द्यनू तम पूंजी या स्ट्िाजमत्िाधीन जनजधयों या िुद्ध संपजत्त
का ईच्चतर बनाए रखगे ी ।
(ii) यकद अिेदक, जो कक ऄपन े गृह ऄजधकार-िेत्र म ें एक जनगजमत आकाइ ह,ै कोइ ‘जित्त यूजनट’ स्ट्थाजपत करन े
और रजजस्ट्टर करन े की इप्सा कर रहा ह ै तो अिेदक आकाइ आन जिजनयमों के ऄधीन जिजभन्न प्रिगों के ऄधीन
िगीकृत कियाकलाप (कियाकलापों) के प्रिगा या कियाकलापों के संयोजन के अधार पर, हर समय ऄिुण्ण
अधार पर न्द्यूनतम स्ट्िाजमत्िाधीन जनजध देगा और ईसे बनाए रखेगा तथा आन जिजनयमों के ऄधीन ऄनुसूची म ें
या प्राजधकरण द्वारा जारी ककसी सुसंगत जिजनयामक ढांचे के ऄधीन, जो भी लागू हो, जिजनर्ददष्ट प्रत्येक
कियाकलाप या कियाकलापों के प्रिग ा के जलए जिजहत न्द्यनू तम पूंजी या स्ट्िाजमत्िाधीन जनजधयों या िुद्ध संपजत्त
का ईच्चतर बनाए रखगे ा ।”
4. मूल जिजनयमों के जिजनयम 5 के ईप-जिजनयम (1) में, खंड (i) का लोप ककया जाएगा ।
5. मूल जिजनयमों के जिजनयम 5 के ईप-जिजनयम (1) म,ें खंड (ii) और (iii) के स्ट्थान पर जनम्नजलजखत रखा जाएगा,
ऄथाात:् -[भाग III—खण् ड 4] भारत का राजपत्र : ऄसाधारण 3
“(ii) ऄनज्ञु ात कोर कियाकलाप
(क) ईधारों, िचनबद्धताओं और प्रत्याभूजतयों, िेजडट में िृजद्ध, प्रजतभूजतकरण, जित्तीय पट्टे और पोटाफोजलयों के िय
और जििय के रूप म ेंईधार देना;
(ख) प्राप्यों की फैक्टररग और फोरफेरटग;
(ग) जनिेि करना, जजसके ऄंतगात प्रजतभूजतयों या ऐस े ऄन्द्य जलखतों म,ें जो प्राजधकरण द्वारा ऄनुज्ञात की जाएं,
ऄंिदान करना, ईन्द्ह ेंऄर्जजत करना, धारण करना या ईनका ऄतं रण करना भी ह;ै
(घ) डेठरिेठटव्स का िय या जििय करना;
(ङ) िैजिक/िेत्रीय कारपोरेट खजाना केन्द्र; और
(च) ऐसा कोइ ऄन्द्य कोर कियाकलाप, जो प्राजधकरण ऄनुज्ञात करे ।”
“(iii) ऄनज्ञु ात गरै -कोर कियाकलाप
जिजनर्ददष्ट रजजस्ट्रीकरण ऄपेिाओं के ऄधीन रहत े हुए, जहां कहीं भी लाग ू हो, यथाजस्ट्थजत, ककसी जित्त कंपनी या
ककसी जित्त यूजनट के जलए ऄनुज्ञात गरै -कोर कियाकलापों में जनम्नजलजखत कियाकलाप िाजमल होंगे:
(क) मचेंट बैंककग;
(ख) प्राजधकृत व्यजि;
(ग) रजजस्ट्रार और िेयर ऄंतरण ऄजभकता;ा
(घ) न्द्यासी सेिाएं;
(ङ) जनिेि परामिी सेिाएं;
(च) पोटाफोजलयो प्रबंधन सेिाएं;
(छ) ककसी ईत्पाद के पट्टे का प्रचालन, जजसके ऄतं गता िायुयान पट्टा, पोत पट्टा या कोइ ऐसा ऄन्द्य ईपस्ट्कर भी
ह,ै जो प्राजधकरण समय-समय पर जिजनर्ददष्ट करे;
(ज) ऄंतरराष्ट्रीय व्यापार जित्तपोषण सेिा प्लेटफामा;
(झ) जित्तीय ईत्पादों का जितरण (जजसके ऄंतगात पारस्ट्पठरक जनजघ यूजनट और बीमा ईत्पाद भी ह)ैं ;
(ञ) अइ.एफ.एस.सी. म ें स्ट्थाजपत एक्सचेंजों और समािोधन जनगमों के व्यापाठरक और समािोधन सदस्ट्य या
व्यािसाजयक समािोधन सदस्ट्य के रूप म ेंकृत्य करना;
(ट) प्राजधकरण द्वारा यथा-जिजनर्ददष्ट समथाकारी ऄनुषंगी सेिाओं के जलए ढांचे के ऄधीन ऄनज्ञु ात अजस्ट्त प्रबंधन
सहायता सेिाएं;
(ठ) जब भी प्राजधकरण द्वारा ऄनुज्ञात ककया जाए, ऄनुज्ञेय कियाकलापों के सुगमकता ाके रूप में काया करना;
(ड) ग्राहक आंटरफेस ऄतं िाजलत ककए जबना, जैसा कक प्राजधकरण के पूिा ऄनुमोदन स े ऄनज्ञु ात ककया जाए, ऐसा
कोइ ऄन्द्य कियाकलाप, जो प्राजधकरण द्वारा आन जिजनयमों के ऄधीन गैर-कोर कियाकलाप के रूप में िगीकृत
ह;ै और
(ढ) ऐसा कोइ ऄन्द्य कियाकलाप, जो प्राजधकरण आन जिजनयमों के ऄधीन गैर-कोर कियाकलाप के रूप म ें
ऄनुज्ञात और िगीकृत करे ।”
6. मूल जिजनयमों के जिजनयम 5 म,ें ईप-जिजनयम (2) के स्ट्थान पर जनम्नजलजखत रखा जाएगा, ऄथाात्:-
“(2) ऐसी ककसी जित्त कंपनी या ककसी जित्त यूजनट को, जो केिल एक या ईससे ऄजधक गैर-कोर कियाकलाप चलान े
के जलए रजजस्ट्रीकृत ह,ै ईसके सामान्द्य कारबार प्रचालनों के भागस्ट्िरूप, तरलता और तलु न-पत्र प्रबंधन के4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
प्रयोजनाथा जनिेि कियाकलाप करने के जलए ऄनुज्ञात ककया जा सकेगा और ऐसे जनिेि संबंधी कियाकलाप को आन
जिजनयमों के प्रयोजनाथा कोर कियाकलाप नहीं माना जाएगा ।”
7. मूल जिजनयमों के जिजनयम 5 में, ईप-जिजनयम (3) के पश्चात्, जनम्नजलजखत ईप-जिजनयम ऄंतःस्ट्थाजपत ककया जाएगा,
ऄथाात:् -
“(3क) ऐसी कोइ जित्त कंपनी या कोइ जित्त यूजनट, जजसका अिय कोइ गैर-कोर कियाकलाप करना ह,ै प्राजधकरण
द्वारा ईस जिजिष्ट कियाकलाप के जलए यथा-जिजनर्ददष्ट संबंजधत ढांचे के ईपबंधों के ऄधीन होगा ।”
8. मूल जिजनयमों में, जिजनयम 10 के पश्चात,् जनम्नजलजखत जिजनयम ऄंतःस्ट्थाजपत ककया जाएगा, ऄथाात्:-
“10क. कठठनाआयों को दरू करन ेऔर जिजनयमों के कठोर प्रितना को जिजथल करन ेकी िजि –
(1) आन जिजनयमों के ईपबंधों को लाग ू करन े या ईनके जनिाचन में अन े िाली ककसी कठठनाइ को दरू करन े की दजृ ष्ट से,
प्राजधकरण मागादिान ठटप्पणों या पठरपत्रों के माध्यम से कदिाजनदेि जारी कर सकेगा ।
(2) प्राजधकरण, ईन कारणों स,े जो लेखबद्ध ककए जाएं, जित्तीय बाजार के जिकास के जहत में, ऐसी फीस का, यकद
कोइ ह,ै संदाय करने पर, जो प्राजधकरण जिजनर्ददष्ट करे, आन जिजनयमों की ककसी ऄपेिा के कठोर प्रितान को जिजथल
कर सकेगा ।”
9. मूल जिजनयमों में, ऄनुसूची के स्ट्थान पर जनम्नजलजखत रखा जाएगा, ऄथाता ्:-
“ऄनसु चू ी
[जिजनयम 3(1), 3(5)(i) और 3(5)(ii) देजखए]
स.ं कियाकलाप न्द्यनू तम स्ट्िाजमत्िाधीन जनजध सबं धं ी छूटप्राप्त जिजनयम, यकद कोइ
ऄपिे ा(य.ूएस.डी. म ेंया जनबाधा रूप स े ह ैं
सपं ठरितना ीय ककसी ऄन्द्य मरु ा म ेंसमतल्ु य रकम)
1 ककसी कोर कियाकलाप के (1)0.2 जमजलयन ऄमरीकी डालर या ऐसी ककसी जनम्नजलजखत के ऄधीन रहत े
जबना एक या ईससे ऄजधक रकम में स,े जो प्रस्ट्ताजित गरै -कोर कियाकलाप के हुए, जिजनयम (4) और
केिल गैर-कोर कियाकलाप जलए, संबंजधत ढांच/े जिजनयम के ऄधीन ईस जिजिष्ट जिजनयम (8):
करना । कियाकलाप के जलए जिजनर्ददष्ट रजजस्ट्रीकरण की
(i) बोड ाद्वारा ऄनुमोकदत
इप्सा करने के जलए ऄपेजित हो, ईच्चतर; या
जििेकपूणा नीजत रखना
(2) ऐसी कोइ ऄन्द्य ईच्चतर रकम, जो प्राजधकरण
(ii) प्राजधकरण द्वारा
जिजनर्ददष्ट करे ।
ईपिर्जणत ईपयुि और
समुजचत मानदंड
2 िैजिक/िेत्रीय कारपोरेट (1) प्राजधकरण द्वारा यथा-जिजनर्ददष्ट कोर कोइ नहीं
खजाना केन्द्रों के जसिाय कियाकलापों के जलए 3 जमजलयन ऄमरीकी डॉलर
गैर-कोर कियाकलापों के की न्द्यूनतम जिजनयमनकारी पूंजी या ऐसी ककसी
साथ या ईनके जबना एक या रकम म ें से, जो संबंजधत ढांच/ेजिजनयम के ऄधीन
ईससे ऄजधक कोर ईस जिजिष्ट कियाकलाप के जलए ककसी गैर-कोर
कियाकलाप करना । कियाकलाप के जलए ऄपेजित हो, ईच्चतर; या
(2) ऐसी कोइ ऄन्द्य ईच्चतर रकम, जो प्राजधकरण
जिजनर्ददष्ट करे ।[भाग III—खण् ड 4] भारत का राजपत्र : ऄसाधारण 5
3 िैजिक/िेत्रीय कारपोरेट 0.2 जमजलयन ऄमरीकी डॉलर या ऐसी ककसी रकम जनम्नजलजखत के ऄधीन रहत े
खजाना केन्द्रों के में से, जो प्राजधकरण द्वारा जिजनर्ददष्ट सुसंगत हुए, जिजनयम (4):
कियाकलाप करना। जिजनयामक ढांचे के ऄधीन ऄपेजित हो, ईच्चतर ।
(i) बोड ाद्वारा ऄनुमोकदत
जििेकपूणा नीजत रखना
(ii) प्राजधकरण द्वारा
ईपिर्जणत ईपयुि और
समुजचत मानदंड
आनजेती श्रीजनिास, ऄध्यि
[जिज्ञापन III.4/ऄसा./157/2022-23]
ठटप्पण: ऄंतरराष्ट्रीय जित्तीय सेिा केन्द्र प्राजधकरण (जित्त कंपनी) जिजनयम, 2021, भारत के राजपत्र, ऄसाधारण म,ें
ऄजधसूचना स.ं अइ.एफ.एस.सी.ए./2020-21/जी.एन./रेग्य.ु010 द्वारा तारीख 25 माचा, 2021 को प्रकाजित
ककए गए थे, जजन्द्ह ें तारीख 12 ऄप्रैल, 2021 के िुजद्धपत्र के साथ पढ़ा जाना ह ै।
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
NOTIFICATION
Gandhinagar, the 1st July, 2022
International Financial Services Centres Authority (Finance Company) (Amendment) Regulations, 2022
IFSCA/2022-23/GN/REG026.- In exercise of the powers conferred by sub-section (1) of section 28 read with sub-
section (1) of Section 12 and sub-section (1) of Section 13 of the International Financial Services Centres Authority
Act, 2019, the International Financial Services Centres Authority hereby makes the following regulations, further to
amend the International Financial Services Centres Authority (Finance Company) Regulations, 2021 (hereinafter
referred to as the Principal Regulations), namely:-
1. (1) These regulations may be called the International Financial Services Centres Authority (Finance
Company) (Amendment) Regulations, 2022.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Principal Regulations a proviso and an explanation shall be inserted under sub-regulation (1) of
regulation 3, namely, -
“Provided that a certificate of registration under these regulations shall be required to be
obtained by an entity intending to carry out such permissible activities which are not covered
under the framework or regulations under which it was previously granted registration or
authorisation, if any.”
Explanation: An entity that has obtained a certificate of registration or authorisation for a
specific activity under another framework or regulations, issued or notified by the Authority,
shall not be required to seek a fresh registration under these regulations for carrying out the
same activity, if it is a permissible activity under regulation 5 of these regulations:
3. In the Principal Regulations, sub-regulations (2), (3) and (5) of regulation 3 shall be substituted by the
following, namely,-
“(2) A Finance Company can be set up either as a subsidiary or a joint venture, or as a newly
incorporated company under the Companies Act, 2013, or in any other form as may be
specified by the Authority from time to time,
Provided that if the parent of a Finance Company is carrying out a regulated financial activity
in its home jurisdiction, it shall obtain a No-objection Certificate from its home country
regulator for setting up a Finance Company in the IFSCs, wherever applicable.”6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
“(3) A Finance Unit can be set up if the applicant is an incorporated entity in its home jurisdiction.
Provided that a Finance Unit can be set up for undertaking core activities as specified in these
regulations only if the applicant, being an incorporated entity in its home jurisdiction, is
engaged in the business of financial services and is regulated by a financial sector regulator in
its home jurisdiction and has obtained a No-Objection Certificate from the home regulator for
setting up a Finance Unit in the IFSCs, wherever applicable.”
Provided further that the conditions under the above proviso shall not apply to an incorporated
entity which desires to set up a Global/Regional Corporate Treasury Centre as a Finance Unit
in the IFSCs for undertaking treasury activities or treasury services in accordance with the
relevant regulatory framework specified by the Authority.
“(5) A Finance Company or a Finance Unit seeking registration shall comply with following
conditions:
(i) The applicant seeking registration as a „Finance Company‟ shall have and maintain
minimum owned fund, depending on the category of activity(ies) or a combination of
activities classified under different categories under these regulations, and shall maintain
the higher of the minimum capital or owned funds or net worth prescribed for each
activity or category of activities specified in Schedule under these regulations or under
any of the relevant regulatory framework issued by the Authority, as applicable.
(ii) In case the applicant, being an incorporated entity in its home jurisdiction, is seeking to set
up and register a „Finance Unit‟, it shall provide and maintain minimum owned fund on
unimpaired basis at all times, depending on the category of activity(ies) or a combination
of activities classified under different categories under these regulations, and shall
maintain the higher of the minimum capital or owned funds or net worth prescribed for
each activity or category of activities specified in Schedule under these regulations or
under any of the relevant regulatory framework issued by the Authority, as applicable.”
4. In the Principal Regulations, clause (i) of sub-regulation (1) of regulation 5 shall be omitted.
5. In the Principal Regulations, clause (ii) and (iii) of sub-regulation (1) of regulation 5 shall be substituted by
the following, namely, -
“(ii) Permitted Core Activities
(a) Lend in the form of loans, commitments and guarantees, credit enhancement,
securitisation, financial lease, and sale and purchase of portfolios;
(b) Factoring and forfaiting of receivables;
(c) Undertake investments, including subscribing, acquiring, holding, or transferring
securities or such other instruments, as may be permitted by the Authority;
(d) Buy or Sell derivatives;
(e) Global/Regional Corporate Treasury Centres; and
(f) Any other core activity as may be permitted by the Authority.”
“(iii) Permitted Non-core Activities
Subject to specific registration requirements, wherever applicable, permitted non-core
activities for a Finance Company or a Finance Unit, as the case may be, shall include
following activities:
(a) Merchant Banking;
(b) Authorised person;
(c) Registrar and Share Transfer Agent;
(d) Trusteeship Services;[भाग III—खण् ड 4] भारत का राजपत्र : ऄसाधारण 7
(e) Investment Advisory Services;
(f) Portfolio Management Services;
(g) Operating lease of any products, including aircraft lease, ship lease or any other
equipment as may be specified by the Authority from time to time;
(h) International Trade Financing Services Platform;
(i) Distribution of financial products (including mutual fund units and insurance products);
(j) Function as trading and clearing members or professional clearing member of
exchanges and clearing corporations set up in IFSCs;
(k) Asset Management support services permitted under the Framework for Enabling
Ancillary Services as specified by the Authority;
(l) Undertaking to act as facilitators of permissible activities as and when permitted by
the Authority;
(m) Any other activity without involving a customer interface, as may be permitted with
the prior approval of the Authority, that is classified as a non-core activity by the
Authority, under these regulations; and
(n) any other activity, as may be permitted and classified as a non-core activity by the
Authority, under these regulations.”
6. In the Principal Regulations, sub-regulation (2) of regulation 5 shall be substituted by the following, namely,
-
“(2) A Finance Company or a Finance Unit registered for carrying out one or more non-core
activities only, may be permitted to undertake investment activities for the purpose of liquidity and
balance sheet management as part of its normal business operations and such investment activity
shall not be treated as core activity for the purpose of these regulations.”
7. In the Principal Regulations, after sub-regulation 3 of regulation 5 the following sub-regulation shall be
inserted, namely, -
“(3A) A Finance Company or a Finance Unit intending to undertake any of the non-core activity
(ies) shall be subject to the provisions of the respective framework as specified by the Authority for
that particular activity.”
8. In the Principal Regulations, after regulation 10 the following regulation shall be inserted, namely, -
“10A. Power to remove difficulties and relax strict enforcement of the regulations
(1) In order to remove any difficulty in the application or interpretations of the provisions of these
regulations, the Authority may issue clarifications through guidance notes or circulars.
(2) The Authority, for reasons to be recorded in writing, may in the interest of development of
financial market, relax the strict enforcement of any requirement of these regulations, upon
payment of fee, if any, as may be specified by the Authority.”
9. In the Principal Regulations, the Schedule shall be substituted by the following, namely, -
SCHEDULE
[See regulation 3(1), 3(5)(i) and 3(5)(ii)]
No. Activity Minimum Owned Fund Requirement (in Exempted Regulations, if
USD or equivalent amount in any other any
freely convertible currency)
1 Undertaking one or more of (1) Higher of USD 0.2 million or any such Regulation (4) and
the non-core activities only amount as may be required to seek specific Regulation (8) subject to the
– without any core registration for a proposed non-core activity8 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
activity(ies). under the respective Framework/ Regulation following:
for that particular activity; or
(i) To have a Board
(2) Any higher amount as may be specified approved prudential policy
by the Authority.
(ii) Fit and Proper criteria
set out by the Authority.
2 Undertaking one or more (1) Higher of USD 3 million, minimum None
core activities with or regulatory capital for core activities as
without non-core activities, specified by the Authority; or any such
except for Global/Regional amount as may be required for a non-core
Corporate Treasury Centres activity(ies) under the respective
Framework/Regulation for that particular
activity; or
(2) Any higher amount as may be specified
by the authority.
3 Undertaking activities of Higher of USD 0.2 million or any such Regulation (4) subject to the
Global/Regional Corporate amount as may be required under the relevant following:
Treasury Centres. regulatory framework specified by the
(i) To have a Board
Authority.
approved prudential policy
(ii) Fit and Proper criteria
set out by the Authority.
INJETI SRINIVAS, Chairperson
[ADVT.-III/4/Exty./157/2022-23]
Note:
The International Financial Services Centres Authority (Finance Company) Regulations, 2021 were
published in the Gazette of India Extraordinary vide notification No. IFSCA/2020-21/GN/REG010 on 25th
March 2021, read with Corrigendum dated 12th April, 2021.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.