NE BUSINESS BUREAU
NEW DELHI, MAR 16
International Financial Services Centres Authority (IFSCA) on Tuesday approved the inclusion of portfolio management and investment advisory services in the permitted activities for banking units at IFSCs.
The IFSCA also approved the Market Infrastructure Institutions Regulations, which will provide more flexibility in the shareholding of MIIs in the IFSC.
The market infrastructure institutions (MIIs) viz stock exchanges, clearing corporations, and depositories are of critical importance in the growth and stability of any financial system, IFSCA said in a statement.
The MII regulations, approved by the authority, will provide more flexibility in terms of shareholding of MIIs in IFSC (including the option of a consortium of MIIs recognised in India, IFSC or FATF compliant foreign jurisdiction holding shareholding of the MIIs in IFSC), prescribe enhanced governance norms and ensure adequate risk management by MIIs, in addition to other general obligations.
The MII regulations are also in line with the global standards, keeping in mind the twin objectives of development of MIIs with adequate safeguards to ensure stability and continuity of the MIIs in IFSC, it added.
To widen the scope of services and development offered by the banking units operating in the IFSC, the authority approved the inclusion of portfolio management services and investment advisory services in the permitted activities for banking units.
IFSCA also approved the draft International Financial Services Centres Authority (Finance Company), Regulations, 2021, which provide opportunities to non-bank entities, both Indian and foreign, to set up units in the IFSC to undertake a wide range of financial services-related activities (including aircraft/ship leasing, among others).
The regulations are aligned with the international standards and ensure transparency, it added.
Gujarat-headquartered International Financial Services Centres (IFSCA) has been authorised to regulate all financial services at IFSCs. The IFSCA was established on April 27, 2020, with its head office in Gandhinagar.
In December 2019, Parliament passed a bill to set up a unified authority for regulating all financial activities at IFSCs in the country.
