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

## Policy Analysis Report: Renewal of Recognition for 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 for India International Clearing Corporation IFSC Limited. The notification grants a one-year renewal of recognition, effective from December 29, 2021, to December 28, 2022, allowing the corporation to continue operating in contracts related to securities. The key finding is that the renewal is subject to conditions specified by IFSCA, emphasizing ongoing regulatory oversight. **2. Introduction:** This report aims to provide information regarding the IFSCA's notification concerning the renewal of recognition for India International Clearing Corporation IFSC Limited, based solely on the text of the notification provided. It analyzes the policy's objectives, rationale, provisions, and potential impact. **3. Policy Overview:** * This is an amendment to an existing policy. The existing policy is presumed to relate to the recognition and regulation of Market Infrastructure Institutions (MIIs) within International Financial Services Centres (IFSCs). * **Core Objective(s):** The objective of this notification is to renew the recognition of the India International Clearing Corporation IFSC Limited, enabling it to continue its operations within the regulatory framework established for IFSCs. The text suggests underlying objectives of maintaining orderly securities markets and serving the public interest. **4. Background and Rationale:** This amendment (renewal) is likely driven by the need to maintain continuity and stability in the operations of the India International Clearing Corporation IFSC Limited. Without the renewal, the corporation's authorization to operate would lapse. The rationale, according to the text, is based on the IFSCA's assessment that the renewal is in the interest of trade, the securities market, and the public. This indicates a satisfactory review of the corporation's past performance and compliance. **5. Key Provisions / Changes:** This notification focuses specifically on changes related to the renewal of recognition. * **Specific Part of Original Policy Being Changed:** The amendment relates to the application for renewal of recognition under Regulation 12 of the International Financial Service Centres Authority Market Infrastructure Institutions Regulations, 2021. * **New Rule/Provision:** The core new provision is the granting of a one-year renewal of recognition to India International Clearing Corporation IFSC Limited, valid from December 29, 2021, to December 28, 2022. This renewal is subject to conditions specified by IFSCA. * **Difference/Effect of the Change:** The change effectively extends the authorization for the India International Clearing Corporation IFSC Limited to operate for an additional year. Without this change, the corporation would have to cease operations or re-apply for initial recognition. The conditionality attached suggests ongoing monitoring and potential adjustments to the corporation's operational parameters by IFSCA. **6. Target Audience and Stakeholders:** The primary target audience is India International Clearing Corporation IFSC Limited. Other stakeholders include: * Investors and traders participating in the IFSC securities market. * Other Market Infrastructure Institutions (MIIs) operating in IFSCs. * The IFSCA, as the regulatory body. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The IFSCA is the responsible agency, as it issued the notification and is responsible for specifying and enforcing the conditions of the renewal. * **Timelines or Procedures:** The notification specifies the period of renewal (December 29, 2021, to December 28, 2022). The text suggests that the India International Clearing Corporation IFSC Limited followed the procedure for applying for renewal under Regulation 12 of the International Financial Service Centres Authority Market Infrastructure Institutions Regulations, 2021. * **Implementation of Changes:** The key implementation aspect relates to the conditions specified by IFSCA. India International Clearing Corporation IFSC Limited is required to comply with these conditions. **8. Expected Outcomes / Impact of Changes:** The intended outcome of this renewal is to ensure the continued smooth functioning of the clearing and settlement processes within the IFSC. The likely impact of this specific change includes: * **Continuity of Operations:** The most direct impact is the continued operation of the India International Clearing Corporation IFSC Limited, preventing disruption to trading and settlement activities. * **Regulatory Compliance:** The conditionality attached to the renewal ensures ongoing regulatory oversight and adherence to IFSCA's requirements. This aims to maintain market integrity and investor protection. * **Market Confidence:** The renewal likely reinforces confidence in the IFSC ecosystem, as it demonstrates the commitment of the regulatory authority to ensuring the stability and reliability of key market infrastructure institutions. **9. Conclusion:** The IFSCA's notification regarding the renewal of recognition for India International Clearing Corporation IFSC Limited is a significant event, ensuring the uninterrupted operation of a critical market infrastructure institution within the IFSC. The renewal, subject to conditions specified by IFSCA, reflects the ongoing regulatory oversight and commitment to maintaining a robust and reliable financial market environment. The notification contributes to the overall stability and attractiveness of the IFSC as a global financial hub.

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