IFSCA issued prudential Regulations and activity specific guidelines

May 05, 2021 | by Avantis RegTech Legal Research Team

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Finance & Taxation Compliance

The International Financial Services Centre Authority (IFSCA), on May 03, 2021 issued prudential Regulations and activity specific guidelines.

 

These regulations shall apply to Finance Company (FC) or Finance Unit (FU) registered under section 3 of IFSCA (Finance Company) Regulations, 2021 and intending to undertake one or more core activities with or without non-core activities, undertaking specialized activities with or without core or non-core activities or undertaking any of the permissible activities, if operating without customer interface.

Further the guidelines as specified I the ‘Directions for implementation’ under prudential Regulations and activity specific regulation shall be adhered as specified below:

Prudential Regulations:

• Guidelines on Loans and Advances

• Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances

• Prudential framework for Resolution of Stressed Assets.

Activity specific Regulations :

• Guidelines on Partial Credit enhancement

• Guidelines on Guarantees and co-acceptances

• Guidelines on Securitization Transactions and Direct Assignment of Cash Flows

• Legal Entity Identifier Code

• For Fraud reporting

• Buy and Sell derivatives

Furthermore, it provides activity specific guidelines which shall be adhered to with respect to FC or FU carrying out the following core activities:

• Equipment leasing

• Buy and sell derivatives

• Know your Customer and Anti-Money Laundering

[Circular No. F. No 172/ IFSCA/Finance Company/Unit Regulations/2021-22/3]

 


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