Financial statements prepared and presented by IIOs must include a detailed statement of accounting policies applied to each aspect of those financial statements. Accounting-policy information is therefore an integral part of financial-statement preparation and presentation, requiring detailed identification of policies applied across every relevant aspect for inclusion in the statements.

International Financial Service Centre Insurance Offices must clearly disclose the Accounting Standards followed in preparing and presenting their financial statements. The obligation concerns identification of the Accounting Standards actually followed and requires disclosure of the accounting basis used for those statements.

Financial statement presentation by IIOs must follow the form and manner specified by the Authority. Financial statements must additionally contain comparative information for the preceding accounting year, governing the prescribed format of presentation and year-on-year comparative disclosure in IIO financial reporting.

Financial statement preparation by incorporated International Financial Service Centre Insurance Offices is determined by business category. Life insurance offices must comply with the accounting principles, standards, disclosures and other requirements in Schedule A. General insurance and reinsurance offices must comply with the corresponding requirements in Schedule B for their financial statements.

Unincorporated International Financial Service Centre Insurance Offices must prepare financial statements under accounting standards applicable to their parent entity. Incorporated offices must follow accounting standards issued by the Institute of Chartered Accountants of India, with cash flow statements prepared only through the Direct Method, segment reporting under Accounting Standard 17 irrespective of listing or turnover conditions, and no application of Accounting Standard 13 on investments. The Authority may require transition to IFRS or another accounting standard.

Policyholders' Fund comprises estimated outstanding-claims liabilities, including IBNR, IBNER, unexpired-risk, premium-deficiency and catastrophe reserves, and other liabilities net of other assets. Shareholders' Funds comprise share capital and eligible reserves and surplus, after accumulated losses and unwritten miscellaneous expenditure, excluding revaluation reserve and fair-value change account. An unincorporated office substitutes assigned capital for share capital. Accounting year follows the parent entity for an unincorporated office and ends on 31 March for an incorporated office.

Regulation 3 sets the objective of the International Financial Services Centres Authority framework for International Financial Service Centre Insurance Offices: establishing a process for the preparation and presentation of their financial statements. The framework concerns the manner in which IIO financial statements are to be prepared and presented, applying specifically to those offices within the International Financial Service Centre.

Financial statement preparation and presentation requirements apply only to International Financial Service Centre Insurance Offices registered under the insurance business registration framework. Compliance is linked to registration status as an International Financial Service Centre Insurance Office, and insurance offices outside that specified category do not fall within the regulatory scope.

Preparation and presentation of financial statements by International Financial Service Centre Insurance Offices are regulated under the International Financial Services Centres Authority (Preparation and Presentation of Financial Statements of International Financial Service Centre Insurance Offices) Regulations, 2022. Made under statutory powers in the International Financial Services Centres Authority Act, 2019, and the Insurance Act, 1938, the framework takes effect upon publication in the Official Gazette.

Fit and proper status requires fairness, integrity, financial integrity, good reputation, character, and honesty. Disqualifications include relevant criminal convictions, pending recovery proceedings, winding-up for malfeasance, undischarged insolvency, financial unsoundness, wilful default, fugitive economic offender status, operative findings of unsound mind, and specified regulatory restraints or orders within the applicable three-year period.

Eligible jurisdictions for electronic trading platforms are determined by specified authorisations for recognised market operators, ETP operators, alternative trading systems, multilateral trading facilities and authorised market institutions. The framework covers Singapore, India, the United States, the United Kingdom, the European Union and Dubai International Financial Centre, linking each jurisdiction's eligibility to a defined licensing or supervisory status.

Implementation and regulatory facilitation of Electronic Trading Platforms may be supported by the Authority through subsidiary instructions and clarifications. The Authority may prescribe norms, procedures, processes, methods, additional requirements and guidelines, or grant relaxations, for implementing the regulatory framework and facilitating and regulating Electronic Trading Platform activities.

Regulation 27 permits relaxation of strict enforcement of requirements governing electronic trading platforms where it serves development of the financial services market in the International Financial Services Centre. Reasons for relaxation must be recorded in writing. An applicant must submit details and grounds for the requested relaxation and pay a prescribed non-refundable filing fee.

The Authority may issue directions through subsidiary instructions to resolve difficulties in interpreting or applying provisions governing electronic trading platforms. The power facilitates clarification and practical implementation of regulatory requirements.

The Authority may recover from an Electronic Trading Platform Operator expenses incurred in inspecting or investigating its books of account, records, documents, infrastructure, systems or procedures. Recoverable expenses include fees paid to auditors for conducting those inspection or investigation activities.

Authority-appointed audit may be conducted in relation to an Electronic Trading Platform Operator. The Authority may appoint an auditor, in the manner it considers fit, to audit the operator's books of account, records, documents, infrastructure, systems, procedures or affairs.

Directions may be issued without limiting powers under the Act, rules, regulations or subsidiary instructions. They may be issued suo motu, on receiving information, or during the pendency or following completion of an inspection, inquiry or investigation, where necessary in the interests of the public, trade, participants, or Electronic Trading Platform operations.

Inspection, inquiry, investigation and audit powers enable the Authority to examine an Electronic Trading Platform Operator at any time. Managers, directors, chairpersons, officers and employees must cooperate during these processes. After considering a report arising from an inspection, inquiry, investigation or audit, the Authority may take appropriate action.

The Authority may require an Electronic Trading Platform Operator to furnish information, documents or records at any time. The operator must submit the requested material within the time specified by the Authority.

Electronic Trading Platform Operators must maintain confidential, secure, controlled access to all activity-related data and retain it in readily retrievable form for at least eight years. Separate retention periods apply to data sought in Authority investigations and investigations by other agencies under applicable law. Following cancellation or surrender of registration, an operator may be directed to share all platform-activity data with the Authority or another specified agency.