International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations, 2021
On 12th April 2021, the International Financial Services Centres Authority (IFSCA) issued a Notification No. IFSCA/2021-22/GN/REG011, titled “International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations, 2021.”
The IFSCA Market Infrastructure Institutions Regulations 2021 elaborates on how a Market Infrastructure Institution (MII) can become a recognised MII in an IFSC. It provides regulations regarding the application for seeking recognition, requirements for the grant of recognition, grant of recognition, regulatory fee renewal of recognition, withdrawal of recognition, net worth requirements, shareholding requirements, and listing of MIIs.
The regulation also specifies the governance requirements for MIIs. These requirements span across governance norms, a code of conduct for directors and key management personnel, committees, and the segregation of regulatory departments of an MII. General obligations for a recognized stock exchange and a recognized clearing corporation are also stated along with those for a recognized depository. The notification also provides specifications on website maintenance, record keeping, requirements of a compliance officer, returns and reports, inspections, and other miscellaneous topics.
