Laws and sections by number or title, due dates, pages, and updates.
All IFSC Banking Units receive permission to participate in the synthetic securitisation program of their parent bank under specific conditions. The home regulator of the IBU must adopt the Basel III framework and must not prohibit such transactions. The IBU must notify the Authority before the exposures of the IBU become part of the program. The IBU must comply with the PRU Direction and the IFSCA Banking Handbook. The Authority may require the IBU to submit a copy of the reports submitted to the home regulator regarding the assets of the IBU included in the program.
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[Image omitted. See the official document.]
IFSCA-FMPP0BR/1/2021-Banking-Part (1)/1
July 11, 2024
To, All the IFSC Banking Units (IBUs),
Dear Sir/Madam,
Permission to participate in the synthetic securitisation program of Parent bank
1. Application: This Circular applies to all the IBUs
2. Definition A 'synthetic securitisation' is a structure wherein credit risk of an underlying pool of exposures is transferred, in whole or in part, through the use of funded or unfunded credit derivatives or guarantees that serve to hedge the credit risk of the portfolio while the exposure continues to remain on the balance sheet of the lender.
3. General Directions IBUs are hereby, permitted to participate in the synthetic securitisation program of its Parent bank subject to following conditions
4. IBUs are directed to ensure compliance with the directions in this circular while entering such transactions.
Yours faithfully,
Supriyo Bhattacharjee
Chief General Manager
Department of Banking
