Permissible finance activities require segregated non-core operations, conflict safeguards, hedging-only derivatives, and prohibition of speculative transactions. Finance Companies and Finance Units may undertake specified core and non-core financial activities subject to prescribed conditions, registrations and ... Summary
Permissible finance activities require segregated non-core operations, conflict safeguards, hedging-only derivatives, and prohibition of speculative transactions.
Finance Companies and Finance Units may undertake specified core and non-core financial activities subject to prescribed conditions, registrations and activity-specific frameworks. Non-core activities must be conducted through separately identifiable departments, with firewalls preventing conflicts of interest and Board-approved grievance-redressal and customer-compensation policies. Transactions may be undertaken with residents and non-residents, subject to foreign-exchange law for resident dealings. Derivatives by entities carrying out non-core activities are limited to hedging underlying exposures, and speculative transactions may neither be undertaken nor funded.
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