The International Financial Services Centres Authority on 13th August 2021 has issued IFSCA Banking Handbook in order to enhance ease of doing business in Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC) . The Handbook will act as a compendium of all the detailed directions of the Authority to the IBUs operating in GIFT IFSC, as a branch of a Banking Company incorporated in India or outside India.
The IFSCA Banking Handbook consists of the following three components which are further segregated into modules that communicate the Authority’s regulatory expectations with greater clarity and transparency on the various aspects under the IFSCA (Banking) Regulations:
- General directions (GEN) – deals with licencing of IBUs, defines the ‘controlled’ and ‘designated’ functions and the requirements from ‘approved / authorised individuals’ who can carry out such functions.
- Conduct of Business directions (COB)-aims at ensuring that IBUs meet the minimum standards of conduct expected, particularly with regard to the treatment of their clients, their dealings with counterparties and other market participants, contribute to fostering and maintaining the integrity of financial markets in the IFSC.
- Prudential directions (PRU) – The non-qualitative prudential requirements applicable on the Banking Company under the respective Home Regulations have been made applicable in respect of the IBU, unless the Authority prescribes any directions on any aspect.
