Remittances to IFSCs under the liberalised remittance scheme
RBI, vide circular dated July 10, 2024, has further liberalised remittances under the liberalised remittance scheme via IFSCs by allowing remittances for:
- availing financial services/financial products as per the IFSCA Act, 2019 within IFSCs; and
- all current/capital account transactions, in any other foreign jurisdiction (other than IFSCs) through a foreign currency account held in IFSCs.
Permission granted to IFSCs banking units to participate in the synthetic securitisation program of its parent bank
IFSCA, vide circular dated July 11, 2024, has permitted IFSC Banking Units ("IBUs") to participate in the synthetic securitisation program of its parent bank subject to following conditions:
- 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;
- IBU must notify IFSCA before the exposures of the IBU are incorporated in the parent bank's program for synthetic securitisation;
- IBU must comply with provisions of the IFSCA Banking Handbook and the Prudential Directions; and
- the IFSCA 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.
Permission granted to CRAs to undertake Environmental Social and Governance rating activities under the IFSCs
IFSCA, vide circular dated July 31, 2024, has permitted CRAs to undertake additional activities relating to Environmental Social and Governance ("ESG") ratings and ESG data products, for any financial product or to an issuer including sovereign or multinational institution whether in IFSCA or any foreign jurisdiction while being subject to the prescribed code of conduct.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
