The International Financial Services Centres Authority on 29th June 2022, has published the International Financial Services Centres Authority (Banking) (Amendment) Regulations, 2022 to further amend the International Financial Services Centres Authority (Banking) Regulations, 2020.
Through this amendment, the definition for the following terms has been notified.
The definition for the term “Global Administrative Office” or “GAO” shall mean a financial institution set up by its Parent Bank in IFSC for undertaking any one or more of the following activities, namely:
(i) Managing, administering, or coordinating operations of the Parent Bank or any of the Group entities either in IFSC or outside IFSC;
(ii) Providing support services to Parent Bank or any of the Group entities for execution of the permitted activities either in IFSC or outside IFSC.
Provided that the activities pertaining to a jurisdiction outside IFSC shall be subject to the directions and instructions of the relevant regulator in the said jurisdiction.
The term “Group entities” shall mean any holding company, subsidiaries, branches or any other entity, in whatever legal form, through which the Parent bank undertakes its operations or permitted activities
Further, the term “Representative Office” or “RO” means a financial institution set up by its Parent Bank in IFSC for undertaking any one or more of the following activities, namely:
- Marketing of financial products; (ii) collection of data; (iii) carrying out of outreach operations.
Under regulation 3(9), A Parent Bank may set up its Representative Office or Global Administrative Office in IFSC under a suitable mechanism, subject to such conditions as may be specified by the Authority.
