International Financial Services Centres Authority (Finance Company) (Amendment) Regulations, 2022

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....urther to amend the International Financial Services Centres Authority (Finance Company) Regulations, 2021 (hereinafter referred to as the Principal Regulations), namely:- 1. (1) These regulations may be called the International Financial Services Centres Authority (Finance Company) (Amendment) Regulations, 2022. (2) They shall come into force on the date^# of their publication in the Official Gazette. 2. In the Principal Regulations a proviso and an explanation shall be inserted under sub-regulation (1) of regulation 3, namely, - "Provided that a certificate of registration under these regulations shall be required to be obtained by an entity intending to carry out such permissible activities which are not covered under t....

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....d by a financial sector regulator in its home jurisdiction and has obtained a No-Objection Certificate from the home regulator for setting up a Finance Unit in the IFSCs, wherever applicable." Provided further that the conditions under the above proviso shall not apply to an incorporated entity which desires to set up a Global/Regional Corporate Treasury Centre as a Finance Unit in the IFSCs for undertaking treasury activities or treasury services in accordance with the relevant regulatory framework specified by the Authority. "(5) A Finance Company or a Finance Unit seeking registration shall comply with following conditions: (i) The applicant seeking registration as a 'Finance Company' shall have and maintain mi....

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....ortfolios; (b) Factoring and forfaiting of receivables; (c) Undertake investments, including subscribing, acquiring, holding, or transferring securities or such other instruments, as may be permitted by the Authority; (d) Buy or Sell derivatives; (e) Global/Regional Corporate Treasury Centres; and (f) Any other core activity as may be permitted by the Authority." "(iii) Permitted Non-core Activities Subject to specific registration requirements, wherever applicable, permitted non-core activities for a Finance Company or a Finance Unit, as the case may be, shall include following activities: (a) Merchant Banking; (b) Authorised person; (c) Registrar and....

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.... activities for the purpose of liquidity and balance sheet management as part of its normal business operations and such investment activity shall not be treated as core activity for the purpose of these regulations." 7. In the Principal Regulations, after sub-regulation 3 of regulation 5 the following sub-regulation shall be inserted, namely, - "(3A) A Finance Company or a Finance Unit intending to undertake any of the non-core activity(ies) shall be subject to the provisions of the respective framework as specified by the Authority for that particular activity." 8. In the Principal Regulations, after regulation 10 the following regulation shall be inserted, namely, - "10A. Power to remove difficulties and relax str....