Laws and sections by number or title, due dates, pages, and updates.
The International Financial Services Centres Authority issues amendments and additions to the IFSCA Banking Handbook based on feedback from IFSC Banking units. The Authority adds a new module for raising queries pertaining to banking and updates general, conduct of business, and prudential directions. IFSC Banking units must ensure compliance with these directions. The amendments take effect on June 6, 2022.
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International Financial Services Centres Authority
F.No.110/IFSCA/Banking Regulation/2022-23/1
June 6, 2022
To,
All Banking Units
Dear Sir/Madam,
Amendments and additions to IFSCA Banking Handbook
IFSC Banking units (IBUs) may refer to circular F.No.110/IFSCA/Banking Regulation/2021-22/ 9 dated November 12 ,2021 on amendments/additions to the Banking Handbook (v.1)
Based on the feedback received from IBUs certain further amendments/additions have been carried out to the contents of the Handbook. The list of such amendments/additions is enclosed in the annexure to this circular.
The following module has been added to the Handbook:
The abovementioned amendments/additions shall be effective from the date of this circular
IBUs are directed to ensure compliance to the directions this circular.
Yours faithfully
(Raghuraman Kumar)
Head – Banking
Annexure
List of amendments/additions to provisions under the IFSCA Banking Handbook
GENERAL DIRECTIONS
| S.N. | Module No. | Module Name | Section | Amendment/addition |
|---|---|---|---|---|
| 1 | 1 | LIBU | 7 | Issuance / Denial of license – Provisions added for issuance of “In-principle approval” by the Authority before issuance of full license. |
| 2 | 7 | QUEST | New module on “Raising queries pertaining to Banking” added. |
CONDUCT OF BUSINESS DIRECTIONS
| S.N. | Module No. | Module Name | Section/ Module | Amendment/addition |
|---|---|---|---|---|
| 1 | 1 | ACBU | 4 (xxii) | Section amended to permit IBUs of Indian banks to invest in the Indian securities market under the FPI route. |
| 2 | 3 | CLIC | 4.ii(m) | A non-individual entity enjoying credit facility with any branch or banking subsidiary of the Banking company of which the IBU is a branch included in the list of Deemed Professional Client. |
| 3 | 16 | PRCR | 4 | Restrictions on activity of providing credit - Section rewritten to: |
PRUDENTIAL DIRECTIONS
| S.N. | Module No. | Module Name | Section | Amendment/addition |
|---|---|---|---|---|
| 1 | 3 | PRDS | 1.iii (b) & Annex 1 | Para and Annex 1 updated |
| 2 | 3 | PRDS | 1.iii (g) | Reference to the Risk Manager and the Compliance Officer removed. |
| 3 | 3 | PRDS | 1.v.(b). (iii) | Obligation to report to the Authority, “significant adverse change in the market price of, or trading volume of the equity capital or other capital instruments of the Banking Company or those of the Banking Company’s financial group” removed. |
| 4 | 3 | PRDS | 1.v | Guidance added on reporting of actual and anticipated breaches |
