IFSCA has issued FAQs on Registration of a Finance Company/ Finance Unit. the FAQ clarifies that an applicant intending to set up as a FU for undertaking core activities shall fulfill the following conditions:
- It shall be an incorporated entity in its home jurisdiction.
- It shall be engaged in the business of financial services.
- It shall be regulated by a financial sector regulator in its home jurisdiction; and
- It shall obtain a No-Objection Certificate from the home regulator for setting up a FU in the IFSCs.
These conditions shall not apply to an applicant intending to undertake activity of a Global / Regional Corporate Treasury Centre as a Finance Unit. The FAQ also provides clarifications regarding constitution, operations and group structure of FUs.
