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Recognized stock exchanges in International Financial Services Centres must apply amended accounting standards rules for entities issuing or listing debt securities. The entity prepares financial statements under IFRS, US GAAP, IND AS, or its home incorporation standards. If the entity uses local standards, it includes a quantitative summary of significant differences between national accounting standards and IFRS in disclosure documents. The entity provides only a statement of differences without a quantitative summary if it targets the issue to institutional investors. The institutional target issue document also contains a disclaimer. The disclaimer states that the issuer does not quantify the effect of applying IFRS, US GAAP, or IND AS, and investors make their own judgment.
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[Image omitted. See the official document.]
SEBI/HO/MRD1/DSAP/CIR/P/2020/154
August 21, 2020
All Recognised Stock Exchanges in International Financial Services Centres (IFSC)
Dear Sir / Madam,
Subject: Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015 - Amendments
Kindly refer to SEBI (IFSC) Guidelines, 2015 which were notified by SEBI on March 27, 2015, SEBI Circular dated August 31, 2017 and February 27, 2020.
Clause 19 of SEBI (IFSC) Guidelines, 2015 is being amended to read as follows:
“19. The entities issuing and/or listing their debt securities in IFSC shall prepare their statement of accounts in accordance with IFRS/ US GAAP/ IND AS or accounting standards as applicable to them in their place of incorporation. In case an entity does not prepare its statement of accounts in accordance with IFRS/ US GAAP/ IND AS, a quantitative summary of significant differences between national accounting standards and IFRS shall be prepared by such entity and incorporated in the relevant disclosure documents to be filed with the exchange.
Provided that quantitative summary of significant differences is not required and a statement of differences between local accounting standards and IFRS/ US GAAP/ IND AS would suffice, if the issue is targeted to institutional investors, along with a disclaimer that issuer has not quantified the effect of applying IFRS/ US GAAP / IND AS to its financial information and investor may make their own judgment in accessing the financial information”.
Yours faithfully,
Sanjay Purao
General Manager
Market Regulation Department
Email: sanjayp@sebi.gov.in
