International Financial Services Centres Authority (Registration of Factors and Registration of Assignment of Receivables) Regulations, 2024

IFSCA on 18th November, 2024 has issued the International Financial Services Centres Authority (Registration of Factors and Registration of Assignment of Receivables) Regulations, 2024. These regulations aim to provide for the manner of:

1. Granting certificate of registration to Factors; and
2. Filing of particulars of transactions with the Central Registry by a Trade Receivable Discounting System (TReDS) on behalf of the Factors under sub-section (1A) of section 19 of the Factoring Regulation Act, 2011.

Every Factor, intending to commence factoring business in an International Financial Services Centre shall make an application to the Authority, for grant of certificate of registration, in such format, as specified. The issuance of certificate of registration shall be contingent upon fulfilment of the following conditions:

1. The Factor shall have obtained a Certificate of Registration under the International Financial Services Centres Authority (Finance Company) Regulations, 2021;
2. The “Relevant Persons” of the Factor shall possess adequate experience in the business of factoring ;
3. The Factor shall either possess necessary infrastructure including adequate office space, equipment, communication facilities and manpower to undertake the business of factoring or shall be willing and able to invest in the same;
4. The Factor and Relevant Persons shall satisfy the ‘fit and proper’ requirements;
5. The financial soundness of the Factor; and
6. The Factor and the Relevant Persons are not subject to any judicial proceeding for breach of any law.