11. A recognised market infrastructure institution shall pay the regulatory fee as specified by the Authority from time to time. =============... ... ...

10. The period of recognition granted to a market infrastructure institution shall be permanent or for such period not less than one year as may be specified by the Authority. =============... ... ...

9. (1) The Authority may, after considering the application and on being satisfied that the applicant has complied with the conditions laid down in these regulations and is eligible to act as a stock exchange, a clearing corporation, or a depository, as the case may be, grant recognition to the applicant subject to such conditions as the Authority may deem fit; (2) A recognised market infrastructure institution shall comply with such additional conditions as may be imposed by the Authorit... ... ...

8. (1) An applicant seeking recognition as a stock exchange or clearing corporation, as the case may be, shall comply with the following conditions, namely, - (a) the applicant is a company limited by shares; (b) the applicant is demutualised; (c) the applicant, its directors and its shareholders who hold or intend to hold shares, are fit and proper persons as specified in these regulations; (d) the applicant satisfies the requirements relating to the owne... ... ...

7. An application for recognition as a depository in an IFSC shall be accompanied by a copy of the draft bye-laws of the depository. =============... ... ...

6. in an IFSC, as the case may be, shall be accompanied by a copy of the memorandum of association, articles of association, bye-laws and other documents as provided in sections 3 and 4 of the SCRA, rule 5 of the rules and these regulations. =============... ... ...

5. An application for recognition as a market infrastructure institution in an IFSC shall be submitted to the Authority in the form and manner, and shall be accompanied by the fee as may be prescribed by the Authority. =============... ... ...

4. A person seeking recognition as a market infrastructure institution in an IFSC shall be a company incorporated in an IFSC in compliance with the shareholding requirements prescribed under these regulations. =============... ... ...

CHAPTER II RECOGNITION 3. No person shall conduct, organise or assist in organising any stock exchange, clearing corporation or depository in an IFSC unless he has obtained recognition from the Authority in accordance with these regulations. =============... ... ...

2. (1) In these regulations, unless the context otherwise requires, the terms defined herein shall bear the meanings as assigned below, and their cognate expressions shall be construed accordingly, - (a) "associate" in relation to a person shall include another person: i. who, directly or indirectly, by himself, or in combination with other persons, exercises control over the first person; ii. who holds control of at least twenty percent of the total voting power o... ... ...

INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY NOTIFICATION Gandhinagar, the 12th April, 2021 International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations, 2021 No. IFSCA/2021-22/GN/REG011.-In exercise of the powers conferred by sub-section (1) of Section 28 read with sub-section (1) of Section 12 and sub-section (1) of Section 13 of the International Financial Services Centres Authority Act, 2019; Sections 4, 8A and 31 read with Section 29B... ... ...

SCHEDULE [See regulation 3(1), 3(4)(i) and 3(4)(ii)] No. Activity Minimum Owned Fund Requirement Exempted Regulations, if any 1 Undertaking only operating lease transactions for aircraft lease USD 0.2 mn or equivalent amount in any other freely convertible currency Regulation (4) and Regulation (8) subject to the following: (i) To have a Board approved prudential policy (ii) Fit and Proper criteria set out by the Authority 2 Undertaking one or more of the non-cor... ... ...

11. If a Finance Company or a Finance Unit, as the case may be, fails to fulfil any of the conditions subject to which the registration under Regulation 3 has been granted, the Authority may take any action as it may deem fit, including suspension, withdrawal or cancellation of registration, after giving an opportunity to the entity, of making its submissions. =============... ... ...

10. (1) For the purposes of implementation of these regulations and matters incidental thereto, or in order to facilitate and regulate financial services relating to activities permitted under these regulations, the Authority may specify norms, procedures, processes, manners including relaxations therefrom, if any, by way of circulars or guidelines. (2) The applicant entity /Finance Company/ Finance Unit, shall pay to the Authority, such fees and charges, as may be specified. =========... ... ...

9. (1) Every Finance Company and Finance Unit shall furnish information relating to its operations to the Authority, in such manner, interval and form, as may be specified by the Authority. (2) Every financial reporting by a Finance Company and a Finance Unit to the Authority shall be in US Dollar, unless otherwise specified by the Authority. =============... ... ...

8. (1) Every Finance Company and Finance Unit shall adhere to the guidelines on corporate governance and disclosure requirements to be specified by the Authority. (2) Any mergers, acquisitions, takeovers or change in management of a Finance Company, which results in its change in control of at least twenty per-cent. of total share capital, or of business decisions under an agreement, shall be subject to prior approval and such other requirements as may be specified by the Authority: Pr... ... ...

7. Every Finance Company and Finance Unit shall follow Know Your Customer norms, combating of financing of terrorism and other anti-money laundering requirements, including reporting requirements, as specified for a Banking Unit in IFSCs. =============... ... ...

CHAPTER V MISCELLANEOUS 6. (1) A Finance Company or a Finance Unit, as the case may be, shall carry out its operation in a freely convertible foreign currency and with such persons, whether resident or otherwise, as may be permitted by the Authority: Provided that a Finance Company or a Finance Unit, as the case may be, may be permitted to conduct such business transactions denominated in INR as may be specified by the Authority, subject to settlement of those business transactions ... ... ...

CHAPTER IV PERMISSIBLE ACTIVITIES 5. (1) A Finance Company or a Finance Unit, as the case may be, may undertake the following permitted core and non-core activities, subject to compliance with such terms and conditions or guidelines as may be specified by the Authority: (i) Permitted Specialised Activities (a) Credit enhancement; (b) Factoring and forfaiting of receivables; (c) any other specialised activity as may be permitted by the Authority. ... ... ...

SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER For the Assessee :  None For the Revenue : Shri S.K. Gupta, DR ORDER Per Smt.P. Madhavi Devi, J.M. This is Revenue's appeal for the A.Y 2008-09. In this appeal, the Revenue's grievence is that the CIT (A) has erred in giving relief to the assessee on estimation of the income at a certain percentage of turnover without appreciating that the actual issue involved is determination of 'suppression of... ... ...