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Finance companies and finance units in the International Financial Services Centre must comply with specific guidelines when they undertake permitted non-core activities. The International Financial Services Centres Authority lists nine non-core activities and their applicable regulatory circulars and directions. All registered finance companies and finance units intending to conduct these activities must follow the respective framework, regulations, or circulars as amended from time to time.
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F. No 172/ IFSCA/Finance Company/Unit Regulations/2021-22/5 May 03, 2021
To, All Finance Company's / Finance Units in the International Financial Services Centre (IFSC)
Subject: Information on various guidelines/circulars/directions applicable for undertaking non-core activities by an FC/FU
The Finance Company/Finance Unit(FC/FU) may draw reference to regulation 5 (1) (iii) on permitted non-core activities of the International Financial Services Centres Authority (Finance Company) Regulations, 2021(herein referred to as 'Regulations') dated March 25, 2021 issued by the Authority.
| Sr. no | Permitted non-core activity | Applicable IFSCA or SEBI circular/directions/guidelines |
|---|---|---|
| 1. | Authorized person | IFSCA Circular titled 'Market Access through Authorized Persons' dated October 14, 2020 |
| 2. | Trusteeship Services | IFSCA Circular titled 'Framework for enabling Ancillary Services at IFSC' dated February 10, 2021 |
| 3. | Investment Advisory services | 1. SEBI (IFSC) Guidelines, 2015 |
IFSCA circular titled ‘Operating Guidelines for Investment Advisers in IFSC’ dated January 09, 2020 subsequently amended by way of circulars dated Feb 28, 2020 and Sept 28, 2020 | | 4. | Portfolio Management Services | 1. SEBI (IFSC) Guidelines, 2015 read with SEBI circular dated May 23, 2017 on "Permissible Investments by Portfolio Managers, Alternative Investment Funds and Mutual Funds operating in IFSC";
IFSCA circular titled ‘Operating Guidelines for Portfolio Managers in International Financial Services Centre’ dated Sept 09, 2020 | | 5. | Distribution of Mutual Fund Units | IFSCA Circular titled 'Guidelines on distribution of mutual fund and insurance products by FC/FU' dated May 03, 2021 | | 6. | Distribution of Insurance products | IFSCA Circular titled 'Guidelines on distribution of mutual fund and insurance products by FC/FU' dated May 03, 2021 | | 7. | Function as trading and clearing members or professional clearing member of exchanges and clearing corporations set up in IFSC; | 1. IFSCA circular titled 'Membership of stock exchanges and clearing corporations in IFSC by foreign entities' dated December 11, 2020
SEBI (IFSC) guidelines, 2015 Amendment vide SEBI circular dated July 27, 2017 (eligibility criteria for Indian brokers), SEBI/HO/MRD/DSA/CIR/P/2017/117 dated Oct 17, 2017 and SEBI Circular SEBI/HO/MRD1/DSAP/CIR/P/2020/30 dated Feb 27, 2020
SEBI (Stock Broker) Regulations, 1992 (registration form and other details) | | 8. | Transactions permitted under the Framework for Aircraft operating Lease, as specified by the authority | IFSCA circular titled ‘Framework for aircraft operating lease’ dated February 19, 2021 | | 9. | Asset Management support services permitted under the Framework for Enabling Ancillary Services as specified by the Authority, | IFSCA circular titled ‘Framework for enabling Ancillary Services at IFSC’ dated February 10, 2021 |
All FC/FUs on which this circular is applicable, are directed to ensure compliance with this circular.
Yours faithfully,
(R. Kumar) Head, Banking Division rag.kumar@ifsca.gov.in
