Permissible finance activities require separate non-core departments, conflict safeguards, hedging-only derivatives, and prohibition of speculative transactions. Finance Companies and Finance Units may undertake specified specialised, core, and non-core financial activities, subject to applicable conditions, ... Summary
Permissible finance activities require separate non-core departments, conflict safeguards, hedging-only derivatives, and prohibition of speculative transactions.
Finance Companies and Finance Units may undertake specified specialised, core, and non-core financial activities, subject to applicable conditions, registration requirements, and approvals. Non-core activities must be conducted through separately identifiable departments, protected by conflict-of-interest firewalls, and supported by a Board-approved grievance-redressal and customer-compensation policy. Dealings with residents remain subject to foreign exchange law. Derivatives undertaken by entities carrying out non-core activities are restricted to hedging underlying exposures, and speculative transactions may not be undertaken or funded.
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