The International Financial Services Centres Authority, having considered the application for grant of renewal of recognition under Regulation 12 of the International Financial Service Centres Authority

## Report on Renewal of Recognition to India International Clearing Corporation IFSC Limited **1. Executive Summary:** This report analyzes a notification from the International Financial Services Centres Authority (IFSCA) regarding the renewal of recognition to India International Clearing Corporation IFSC Limited. The notification grants a one-year renewal of recognition, effective from December 29, 2022, to December 28, 2023. This renewal allows the corporation to continue its operations related to contracts in securities within the International Financial Services Centre (IFSC), subject to conditions specified by IFSCA. The report focuses on the implications of this renewal for the corporation and related stakeholders. **2. Introduction:** The purpose of this report is to provide an informative overview and analysis of the IFSCA notification concerning the renewal of recognition for India International Clearing Corporation IFSC Limited, based solely on the information provided in the notification text. **3. Policy Overview:** This notification pertains to a renewal of recognition under Regulation 12 of the International Financial Service Centres Authority Market Infrastructure Institutions Regulations, 2021. The core objective is to ensure the continued operation of a vital market infrastructure institution (India International Clearing Corporation IFSC Limited) within the regulatory framework established for International Financial Services Centres. **4. Background and Rationale:** This is a renewal, and thus likely indicates that the existing recognition of India International Clearing Corporation IFSC Limited was due to expire. The renewal suggests the corporation has met the necessary criteria for continued operation. The notification explicitly states the renewal is "in the interest of the trade, in the interest of securities market and also in the public interest." This suggests the corporation's services are considered beneficial to the overall functioning and stability of the IFSC. **5. Key Provisions / Changes:** This notification focuses *specifically* on the changes introduced by the amendment text: * The original policy/regulation being addressed is "Regulation 12 of the International Financial Service Centres Authority Market Infrastructure Institutions Regulations, 2021" and "section 12 of the International Financial Services Centres Authority Act, 2019 and subsection 4 of section 8A of the Securities Contracts Regulation Act, 1956 read with regulation 9 of the International Financial Services Centres Authority Market Infrastructure Institutions Regulations, 2021" * The *new* rule/provision *is*: The India International Clearing Corporation IFSC Limited is granted a one-year renewal of recognition, commencing on the 29th day of December, 2022 and ending on the 28th day of December, 2023 in respect of contracts in securities subject to the conditions stated herein below or as may be prescribed or imposed hereafter. * The *difference* or the *effect* of this specific change: Without this renewal, the corporation's recognition would have lapsed, potentially disrupting clearing and settlement activities within the IFSC. The renewal maintains the status quo, allowing the corporation to continue its operations for another year, subject to IFSCA oversight. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders directly affected by this notification include: * **India International Clearing Corporation IFSC Limited:** The recipient of the recognition renewal. * **Members and Participants of the Clearing Corporation:** Entities that rely on the corporation for clearing and settlement services. * **Investors and Traders in the IFSC:** Participants in the securities market who benefit from a well-functioning clearing and settlement infrastructure. * **IFSCA:** The regulatory authority responsible for overseeing the operations of the Clearing Corporation and ensuring compliance with regulations. **7. Implementation Aspects (Inferred):** Based on the text, the following can be inferred about implementation: * **Responsible agency:** The International Financial Services Centres Authority (IFSCA) is responsible for overseeing the implementation and ensuring compliance. * **Timeline:** The renewal is effective for one year, from December 29, 2022, to December 28, 2023. The Clearing Corporation must comply with conditions specified by IFSCA from time to time during this period. * **Procedure:** The Clearing Corporation is expected to operate in accordance with the conditions outlined by IFSCA, which may be prescribed or imposed hereafter. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this renewal is the continued smooth functioning of clearing and settlement activities within the IFSC. By renewing the recognition of India International Clearing Corporation IFSC Limited, IFSCA aims to maintain stability and efficiency in the securities market and protect the interests of investors and other stakeholders. The corporation's continued operation supports the overall growth and development of the IFSC as a global financial hub. **9. Conclusion:** The IFSCA notification represents a routine, but critical, step in ensuring the ongoing operation of India International Clearing Corporation IFSC Limited. The one-year renewal of recognition allows the corporation to continue providing essential clearing and settlement services within the IFSC, subject to regulatory oversight. This renewal is significant for maintaining stability, promoting market efficiency, and supporting the growth of the IFSC as a prominent international financial center.

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