The Insolvency and Bankruptcy Board of India on 4th July 2022, published the International Financial Services Centres Authority (Finance Company) (Amendment) Regulations, 2022 to further amend the International Financial Services Centres Authority (Finance Company) Regulations, 2021.
The Amendment is brought under regulation 3 which deals with registration requirement in which sub-regulation (2), (3) and (5) has been substituted as follows:
A Finance Company can be set up either as a subsidiary or a joint venture, or as a newly incorporated company under the Companies Act, 2013, or in any other form as may be specified by the Authority from time to time.
Provided that if the parent of a Finance Company is carrying out a regulated financial activity in its home jurisdiction, it shall obtain a No-objection Certificate from its home country regulator for setting up a Finance Company in the IFSCs, wherever applicable.”
Regulation 3(3): A Finance Unit can be set up if the applicant is an incorporated entity in its home jurisdiction.
Provided that a Finance Unit can be set up for undertaking core activities as specified in these regulations only if the applicant, being an incorporated entity in its home jurisdiction, is engaged in the business of financial services and is regulated by a financial sector regulator in its home jurisdiction and has obtained a No-Objection Certificate from the home regulator for setting up a Finance Unit in the IFSCs, wherever applicable.”
Provided further that the conditions under the above proviso shall not apply to an incorporated entity which desires to set up a Global/Regional Corporate Treasury Centre as a Finance Unit in the IFSCs for undertaking treasury activities or treasury services in accordance with the relevant regulatory framework specified by the Authority.
Regulation 3(5) A Finance Company or a Finance Unit seeking registration shall comply with following conditions:
- The applicant seeking registration as a „Finance Company‟ shall have and maintain minimum owned fund, depending on the category of activities or a combination of activities classified under different categories under these regulations,
- In case the applicant, being an incorporated entity in its home jurisdiction, is seeking to set up and register a „Finance Unit‟, it shall provide and maintain minimum owned fund on unimpaired basis at all times, depending on the category of activities or a combination of activities classified under different categories under these regulations.
