On 1-7-2022, International Financial Services Centres Authority (IFSCA) notifies International Financial Services Centres Authority (Finance Company) (Amendment) Regulations, 2022. This Amendment seeks to amend International Financial Services Centres Authority (Finance Company) Regulations, 2021, with the aim of defining the certification process and updating activities permitted to be carried out by the Finance Company under IFSCA. These regulations will come into force with immediate effect.
Key Amendment:
- With the modification of Regulation 3, Entity which intends to operate as a Finance Company or Finance Unit, in International Financial Services Centres (IFSCs), may not be required to seek a fresh certificate if it has already obtained the certificate of registration under any other legal framework under the Authority.
- The activities that are permissible to be carried out should be covered under Regulation 5.
- Governed by the provisions of Companies Act, 2013, Finance Company may be set up as an incorporated subsidiary/joint venture in its home jurisdiction.
- Regulation 5(1) is amended to revise the Permitted Core Activities and Permitted Non-Core Activities by the Authority.
- Regulation 10A is inserted to remove difficulties and relax strict enforcement of the regulations, explained as under,
- For the removal of any difficulty in the application or interpretation of the provisions, the Authority may, through guidance notes or circulars, issue clarifications.
- Authority may, for the development of the financial market, relax the strict enforcement of any requirement of these regulations regarding payment of a prescribed fee.
*Shubhi Srivastava, Editorial Assistant has reported this brief.
