IFSC Banking Units permitted to participate in the synthetic securitization program of Parent bank

IFSCA on July 11, 2024 has allowed IFSC Banking Units (IBUs) to participate in the synthetic securitisation program of Parent bank. IBUs are hereby, permitted to participate in the synthetic securitisation program of its Parent bank subject to following conditions:

1. The Home Regulator of the IBU has adopted the Basel III framework and has not prohibited the banks under its jurisdiction from undertaking such transactions.
2. IBU shall notify the Authority before the exposures of the IBU are incorporated in the Parent bank’s program for synthetic securitisation.
3. IBU shall comply with provisions of PRU Direction, IFSCA Banking Handbook (as revised from time to time)
4. The Authority may require the IBU to submit a copy of the reports being submitted to its Home Regulator for such transactions to the extent such report pertains to the assets of the IBU included in the program on synthetic securitisation.