**Summary:**
This circular, issued by the Securities and Exchange Board of India (SEBI) on February 27, 2020, announces amendments to the SEBI International Financial Services Centres (IFSC) Guidelines, 2015. The amendments aim to streamline operations within IFSCs based on internal discussions and stakeholder consultations.
Key changes include:
* **Intermediaries in IFSC:** Clause 8(1) of the guidelines is amended to allow any SEBI-registered intermediary (excluding trading or clearing members) or its international associates to provide financial services related to the securities market in IFSC without forming a separate company, subject to prior Board approval. However, prior Board permission is not required if such services are exclusively offered to institutional investors. Furthermore, non-SEBI registered intermediaries, recognized in a foreign jurisdiction as defined under clause 2(1)(j) of the guidelines, do not require prior SEBI approval if offering services exclusively to institutional investors.
* **Reporting of Financial Statements:** Clause 19 is amended to specify that entities issuing and/or listing debt securities in IFSC shall prepare their statement of accounts in accordance with IFRS, US GAAP, IND AS, or accounting standards applicable in their place of incorporation. If an entity's accounting standards differ from IFRS, a quantitative summary of significant differences must be prepared and included in relevant disclosure documents filed with the exchange.
This circular is issued under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect investor interests, promote development, and regulate the securities market. The circular is available on the SEBI website (www.sebi.gov.in).
For further information, contact Sanjay Purao, General Manager, Market Regulation Department, at sanjayp@sebi.gov.in.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): The regulatory body for securities markets in India, responsible for protecting investor interests and regulating the securities market.
International Financial Services Centres (IFSC): Special economic zones in India that aim to provide financial services to non-residents and residents, often with more relaxed regulations.
SEBI IFSC Guidelines, 2015: A set of guidelines issued by SEBI governing the operation of financial services in International Financial Services Centres.
Securities and Exchange Board of India Act, 1992: The Act of the Indian Parliament that established the Securities and Exchange Board of India (SEBI) and gave it statutory powers.
Recognised Stock Exchanges: Stock exchanges in India that are recognized by SEBI.
Depositories: Organizations that hold securities in electronic form, facilitating trading and settlement.
Clearing Corporations: Entities that facilitate the clearing and settlement of securities transactions.
IFRS, US GAAP, IND AS: International Financial Reporting Standards, United States Generally Accepted Accounting Principles, and Indian Accounting Standards - sets of accounting standards.
भारतीय प्रततभतू त और वितिमय बोर् ड
Securities and Exchange Board of India
CIRCULAR
SEBI/HO/MRD1/DSAP/CIR/P/2020/30 February 27, 2020
1. All Recognised Stock Exchanges, Depositories and Clearing Corporations
(including those in International Financial Services Centres)
2. All Registered Intermediaries (including those in International Financial
Services Centres)
Dear Sir / Madam,
Subject: Securities and Exchange Board of India (International Financial
Services Centres) Guidelines, 2015 - Amendments
Kindly refer to SEBI (IFSC) Guidelines, 2015 which were notified by SEBI on March 27,
2015.
2. In order to further streamline the operations at IFSC, based on the internal
discussions and consultations held with the stakeholders, it has been decided to
amend provisions of the aforesaid guidelines, which are as follows:
2.1 Intermediaries in IFSC
Clause 8 (1) of SEBI (IFSC) Guidelines, 2015 is being amended to read as under:
“8 (1) Any SEBI-registered intermediary (except trading member or clearing
member) or its international associates in collaboration with such SEBI-registered
intermediary may provide financial services relating to securities market, in IFSC,
without forming a separate company, subject to the prior approval of the Board.
Provided that, in case, such financial services are offered exclusively to
institutional investors, prior permission of the Board is not required.
Provided, further that, in case, such financial services are offered exclusively to
institutional investors by non SEBI-registered intermediary, prior approval of theभारतीय प्रततभतू त और वितिमय बोर् ड
Securities and Exchange Board of India
Board is not required, if such intermediary is recognized entity in a foreign
jurisdiction as defined under clause 2 (1) (j) of these guidelines.”
2.2 Reporting of Financial Statements
Clause 19 of SEBI (IFSC) Guidelines, 2015 is being amended to read as follows:
“19. The entities issuing and/or listing their debt securities in IFSC shall prepare
their statement of accounts in accordance with IFRS/ US GAAP/ IND AS or
accounting standards as applicable to them in their place of incorporation. In case
an entity does not prepare its statement of accounts in accordance with IFRS/
US GAAP/ IND AS, a quantitative summary of significant differences between
national accounting standards and IFRS shall be prepared by such entity and
incorporated in the relevant disclosure documents to be filed with the exchange.”
3. This circular is issued in exercise of powers conferred under Section 11 (1) of the
Securities and Exchange Board of India Act, 1992, to protect the interests of
investors in securities and to promote the development of, and to regulate the
securities market. This circular is available on SEBI website at www.sebi.gov.in.
Yours faithfully,
Sanjay Purao
General Manager
Market Regulation Department
Email: sanjayp@sebi.gov.in