The International Financial Services Centre Authority on 13th July 2022, has notified a new module on Global Administrative office in the conduct of business direction of the banking handbook. The Conduct of business directions are aimed at ensuring that IFSC Banking Units (IBUs) meet the minimum standards of conduct expected, particularly with regard to the treatment of their clients, their dealings with counterparties and other market participants. It also includes directions to ensure that the behaviour of IBUs contributes to fostering and maintaining the integrity of financial markets in the IFSC and will assist the International Financial Services Centres Authority (IFSCA -referred as the ‘Authority’) to meet the regulatory objectives.
The direction set out the framework for setting up and permitted activities for Global Administrative Office (GAO) in IFSC. Banking company incorporated in India or outside India and having an IBU or Representative Office (RO) in IFSC is also permitted to set up an GAO. The GAO shall be located in IFSC, but not on the same or contiguous premises as its IBU, unless specifically permitted by the Authority.
The Directions on the IFSCA OTC Derivatives, set out the requirements for undertaking OTC derivatives (OTC) in IFSC and clearing and reporting of such derivatives. For an OTC derivative contract booked in IFSC to be valid, at least one of the parties to the contract must be a “market maker”.
