International Financial Services Centres Authority (Finance Company) Regulations, 2021
On 25th March 2021, the International Financial Services Centres Authority (IFSCA) issued a Notification No. IFSCA/2020-21/GN/REG010, titled “International Financial Services Centres Authority (Finance Company) Regulations, 2021.”
The IFSCA Finance Company Regulations 2021 provide a streamlined framework for setting up a Finance Company, its regulatory requirements, and the permissible activities. The regulations elaborate on regulations regarding certification of registration, company type (subsidiary / joint venture), No-Objection Certification (NOC) from home country regulations, and the grant for registration.
Furthermore, the regulations also provide prudential regulatory requirements, which include authority-specified prudential requirements, maintenance of capital ratio, liquid coverage ratio, and exposure ceiling. Further, the regulations specify the currency of operations, know your customer and anti-money laundering, corporate governance and disclosure requirements, reporting requirements, and power to specify procedures and issue clarifications action in case of default.
