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An IFSC Banking Unit set up in an International Financial Services Centre acts as a Trading Member of an exchange or a Professional Clearing Member of a clearing corporation in the International Financial Services Centre. The entity acts without forming a separate company. The permission applies subject to conditions from a Reserve Bank of India circular dated April 10, 2017.
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भारतीय प्रतिभूति और विनिमय बोर्ड Securities and Exchange Board of India
CIRCULAR
SEBI/HO/MRD/DSA/CIR/P/2017/ 34
April 27, 2017
Dear Sir / Madam
Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015 - IFSC Banking Units (IBUs) acting as Trading Member or Professional Clearing Member on stock exchanges/clearing corporations in IFSC
Please refer to SEBI (International Financial Services Centres) Guidelines, 2015 which were notified by SEBI on March 27, 2015.
Clause 8 of SEBI (IFSC) Guidelines, 2015 provides that "Any recognised entity or entities desirous of operating in IFSC as an intermediary, may form a company to provide such financial services relating to securities market, as permitted by the Board".
Based on the representations received from the market participants and Reserve Bank of India (RBI) circular dated April 10, 2017, it is clarified that an IFSC Banking Unit (IBU) set up in IFSC shall be permitted to act as a Trading Member of an exchange or a Professional Clearing Member of a clearing corporation in IFSC, without forming a separate company, subject to the conditions mentioned in the aforesaid RBI circular.
This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Yours faithfully,
Bithin Mahanta Deputy General Manager Email: bithinm@sebi.gov.in
