INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY NOTIFICATION Gandhinagar, the 20th August, 2024 F. No. IFSCA/GN/2024/007.- In exercise of the powers conferred by section 8 of the International Financial Services Centres Authority Act, 2019 (50 of 2019), the International Financial Services Centres Authority hereby makes the following regulations, further to amend the International Financial Services Centres Authority (Procedure for Authority Meetings) Regulations, 2020, (hereinaf... ... ...

Members of the International Financial Services Centres Authority must declare faithful performance of their duties and maintain secrecy concerning Authority affairs. They must not communicate information about the Authority or persons dealing with it to persons not legally entitled to receive it, or permit such communication. They must also prevent unauthorised inspection of or access to books, documents, and business information concerning persons having dealings with the Authority.

Affixation of the Authority's Common Seal requires prior authorisation through a resolution of the Authority. The seal may be affixed only in the presence of at least one member, who must sign the instrument to attest that presence. This signature is independent of any signature made by a witness to the instrument.

Regulation 15 empowers the Chairperson, whole-time members, and Chairperson-nominated officers to execute financial and business documents for the Authority. This includes dealing with negotiable instruments, securities, property title documents, bills of exchange, accounts, receipts, and connected instruments. Officers specifically authorised by the Chairperson may also sign and verify plaints, written statements, complaints, affidavits, petitions, and other documents connected with legal proceedings.

Execution of contracts by the Authority is permitted in writing through a member, officer, or other person acting under express or implied authorisation where written execution and signature are legally required. Such contracts may be varied or discharged in the same manner. Contract-related documents may be signed and verified by an officer authorised by the chairperson. Contracts executed in accordance with these requirements are valid and binding on the Authority.

Chapter IV Miscellaneous 13. 1) Chairperson shall nominate any officer of the Authority not below the rank of Grade 'D' as Secretary to keep custody of common seal, register of attendance of the meetings, minutes book, and other documents/records etc. pertaining to the meetings of the Authority. 2) The Secretary shall arrange meetings, record minutes and generally ensure that these regulations are followed. =============... ... ...

12. Every member, before entering upon his duties, shall sign a declaration of fidelity and secrecy in the form set out in the Schedule pledging himself to observe strict secrecy in relation to all transactions of the Authority and all matters relating thereto and shall be by declaration pledge himself not to reveal any of the matters/information which may come to his knowledge in the discharge of his duties except when required or authorized to do so by the Authority or by Law. =========... ... ...

11. 1) A member, as soon as may be, inform the Authority if he becomes subject to any of the disqualifications specified in section 7 of the Act. 2) The Authority shall inform the Central Government, if it comes to the notice of the Authority that any member has attracted the disqualifications referred to in sub-regulation (1). =============... ... ...

Chapter III Obligation of the members 10. Member to abstain from Authority meeting's deliberations on certain matters Every member, who is directly or indirectly concerned or interested in any matter coming up for consideration at a meeting of the Authority, shall, as soon as possible, after the relevant circumstances have come to his knowledge, disclose the nature of his interest at such meeting and such disclosure shall be recorded in the proceedings of the Authority and the member sh... ... ...

9. . 1) The Authority shall cause the minutes of all the proceedings to be maintained in the books kept for the purpose which may be in the form of binders containing loose leaves, duly numbered. 2) A copy of the proceedings of each meeting of the Authority shall be circulated as soon as possible for confirmation of the members. The confirmed minutes shall be signed by the Chairperson or the member presiding at the succeeding meeting, and taken on record thereafter. =============... ... ...

8. The Authority may grant leave of absence to a member not present in the meeting and such leave of absence shall be recorded in the minutes of the meeting. =============... ... ...

7. 1) Four members of the Authority shall constitute the quorum for the transaction of business at a meeting of the Authority. 2) All questions which come up before any meeting of the Authority shall be decided by a majority vote of the members present and voting and in the event of any equality of votes, the Chairperson, or in his absence, the member presiding, shall have a second or casting vote. =============... ... ...

6. 1) Not less than seven working days' notice shall ordinarily be given of each meeting of the Authority and such notice along with agenda papers shall be sent to every member at least seven working days in advance at his or her usual address in India as furnished by him to the Authority.: Provided that if an emergency meeting of the Authority is required to be convened, seven working days' notice may not be required. However, sufficient notice shall be given to the member to enable him ... ... ...

5. Meetings of the authority shall be held at such times and places in India as may be specified in the notice convening the meeting. =============... ... ...

4. The Chairperson or if he is unable to attend the meeting of the Authority, for any reason, any other member chosen by the members present at the meeting, shall preside over the meeting. =============... ... ...

Chapter II Meetings of the Authority 3. 1) Meetings of the Authority shall be convened at least once in each quarter of the year by the Chairperson or in his absence, by any member nominated by the Chairperson, in this behalf. 2) Any three members may require the Chairperson to convene a meeting of the Authority at any time and the Chairperson shall convene the meeting of the Authority accordingly; Provided that if the Chairperson is not available, any three members may require t... ... ...

2. (1) In these regulations, unless the context otherwise requires:- (a) "Act" means the International Financial Services Centres Authority Act, 2019 (50 of 2019); (b) "Authority" means the members of the Authority as constituted under section 4 of the International Financial Services Centres Authority Act, 2019 (50 of 2019); (c) "Chairperson" means Chairperson of the Authority; (d) "Member" means a Member of the Authority and includes the Chairperson; ... ... ...

INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY NOTIFICATION Gandhinagar, the 12th November, 2020 International Financial Services Centres Authority (Procedure for Authority Meetings) Regulations, 2020 IFSCA/2020-21/GN/REG002.-In exercise of the powers conferred by section 8 of the International Financial Services Centres Authority Act, 2019 (50 of 2019), the International Financial Services Centres Authority hereby makes the following regulations, namely: - Chapter 1 Prelim... ... ...

Banking Units in International Financial Services Centres require a licence, minimum starting capital maintained on an unimpaired basis, home-regulator approval, and a Parent Bank liquidity undertaking. They must comply with prudential requirements on liquidity, leverage and exposure limits, while operating mainly in freely convertible foreign currencies. Eligible persons may maintain foreign currency accounts subject to prescribed conditions, and Banking Units may undertake lending, investment, trade finance, derivatives, foreign portfolio investor and clearing-related activities. Know Your Customer, anti-money laundering, reporting, record-maintenance and licensing-condition compliance are mandatory.

Documented share-sale proceeds cannot be treated as unexplained cash credit merely because the shares were identified as penny stocks. Purchase through a registered broker by cheque, demat-account holding and transfer, sale through a recognised stock exchange, and payment of securities transaction tax supported the genuineness of the transactions. Where no defects are found in these records and no material links the taxpayer to price rigging or accommodation entries, an investigation report containing only general penny-stock information is insufficient. The long-term capital-gains addition was therefore deleted.