Sebi eases norms for IFSCs
Market regulator Sebi on Thursday amended the guidelines for intermediaries operating at the International Financial Services Centre (IFSC), wherein such entities will be permitted to carry out operations without forming a separate company.
The facility — subject to various conditions, including Sebi nod — would not be applicable for trading and clearing members.
Besides, the watchdog has changed the guidelines for reporting of financial statements by issuers listing their debt securities at IFSC.
The regulator said the changes are being made to “further streamline the operations at IFSC, based on the internal discussions and consultations held with the stakeholders”.
Amendments have been made to the Sebi (International Financial Services Centres) Guidelines, 2015. At present, Gujarat International Finance Tec-City (GIFT) is the lone IFSC in the country.
Sebi-registered intermediaries or its international associates may provide financial services relating to securities market in IFSC, without forming a separate company, subject to the regulator’s prior approval, according to a circular.
“In case such financial services are offered exclusively to institutional investors, prior permission of the board is not required,” it said.
Further, the circular said a non Sebi-registered intermediary providing services exclusively to institutional investors would not require Sebi’s approval.
This is subject to the condition that it is a recognised entity in a foreign jurisdiction.
Issuers of debt securities at IFSC have to prepare their statement of accounts in accordance with IFRS/ US GAAP/ Ind AS or accounting standards as applicable to them in their place of incorporation.
In other cases, Sebi said, “a quantitative summary of significant differences between national accounting standards and IFRS shall be prepared by such entity and incorporated in the relevant disclosure documents to be filed with the exchange”.