TaxTMI 
TaxTMI 
International Financial Services Centres Authority (Banking) Regulations, 2020
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.... "Act" means the International Financial Services Centres Authority Act, 2019 (50 of 2019); (b) "Authority" means the International Financial Services Centres Authority established under sub-section (1) of Section 4 of the Act; (c) "Banking Unit" means a financial institution under clause (c) of sub-section (1) of Section 3 of the Act that is licensed by the Authority to undertake permissible activities under these regulations; (d) "Foreign Bank" means a banking company incorporated or established outside India; (e) "Foreign Bank Unit" means a Banking Unit set up by a Foreign Bank; (f) "Indian Bank" means any bank incorporated or established under any Act, and includes a wholly owned subsidiary of a foreign bank incorporated in India, but does not include a co-operative bank; (g) "Indian Bank Unit" means a Banking Unit set up by an Indian Bank; (h) "INR" means the Indian currency called the Indian Rupee; (i) "International Financial Services Centre" shall have the same meaning as assigned to it under section clause (g) of sub-section (1) of Section 3 of the Act; (j) "Parent Bank" means a Foreign Bank a....
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.... (c) Parent Bank shall submit an undertaking that it shall provide liquidity to its BU whenever needed for the operations of the BU. (4) In case of applications from a Foreign Bank not having presence in India, the Authority shall specify a suitable mechanism, in addition to the conditions mentioned in sub regulations 3(b) and 3 (c). (5) After considering an application for setting up a Banking Unit, the Authority may grant licence to the applicant subject to such conditions as provided under these regulations or such other additional conditions as it may deem fit. (6) If the Authority is of the opinion that licence cannot be granted, it may give thirty days' time to the applicant, setting out the grounds based on which it cannot grant licence, to enable the applicant to make written submissions, if any. (7) After considering the submissions under sub-regulation (6) made by the applicant to the Authority, if the Authority is not satisfied, it may reject the application and shall communicate the same to the applicant in writing with reasons, not later than thirty days. (8) Every Parent Bank under sub-regulation (1) shall be permitted to establish only one Banki....
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....such persons, whether resident or otherwise, as may be specified by the Authority, subject to settlement of the financial transaction in relation to such business in freely convertible foreign currency. 11. Foreign currency accounts (1) The following persons are permitted to open, hold and maintain foreign currency accounts with a Banking Unit: (a) Qualified Individuals; (b) Persons resident outside India who are corporate or institutional entities, in the manner as may be specified by the Authority; (c) Persons resident in India, who are corporate or institutional entities, subject to such requirements as may be specified by the Authority; (d) Subject to sub-regulation (2), Qualified Resident Individuals (2) Qualified Resident Individuals are permitted to open, hold and maintain accounts in a freely convertible foreign currency, with a Banking Unit, for undertaking transactions connected with or arising from any permissible current or capital account transaction or a combination of both as specified in the Liberalised Remittance Scheme of the Reserve Bank of India. 12. Transactions through foreign currency accounts (1) Cash transa....
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....ing settled with a single payment in a foreign currency. (7) Operate as a Foreign Portfolio Investor: (a) If the Parent Bank of a Banking Unit is registered with Securities and Exchange Board as a Foreign Portfolio Investor, such Banking Unit may carry on activities as a Foreign Portfolio Investor in the IFSC without any separate registration requirement from the Authority but subject to filing an intimation with the Authority in the form and manner as specified by the Authority; (b) If the Parent Bank of a Banking Unit is not registered with Securities and Exchange Board, such Banking Unit may carry on activities as a Foreign Portfolio Investor in IFSC after obtaining registration from the Authority in the form and manner as specified by the Authority; (c) Such Foreign Portfolio Investor may offer Segregated Nominee Account Structure for routing orders of foreign investors; (8) ^1[Function as a trading member for trading in interest rate or currency derivatives and/or as a clearing member for clearing and settlements in any derivative segment]. CHAPTER V KNOW YOUR CUSTOMER AND ANTI-MONEY LAUNDERING 14. Know Your Customer and An....