Amendments and Additions To Ifsca Banking Handbook and Other Issues12112021075247

International Financial Services Centres Authority
F.No.110/IFSCA/Banking Regulation/2021-22/9 November 12 , 2021
To,
All IFSC Banking Units
Dear Sir/Madam,
Amendments and additions to IFSCA Banking Handbook and other issues
IFSC Banking units (IBUs) may refer to circular F.No.110/IFSCA/Banking Regulation/2021-

22/ 6 dated August 13, 2021 on the issuance of IFSCA Banking Handbook.
2. Based on the feedback received from IBUs certain amendments/additions have been
carried out to the contents of the Handbook. The list of such amendments/additions is
enclosed in the annexure to this circular.
3. The following new modules have been added to the Handbook:

a. FX Prime Brokerage – inserted as a Module of the Conduct of Business Handbook
b. Undertaking Business in Foreign Currency - inserted as Module of the Conduct of
Business Handbook.
4. IBUs may note that the provisions of the circulars issued by the Reserve Bank of India
(RBI) and adopted by IFSCA vide its circular F.No.110/IFSCA/Banking Regulation/2020-
21/1 dated December 4, 2020 shall cease to be applicable to the operations of the IBUs
from the date of coming into effect of the directions in the Handbook i.e., January 1, 2022.
A circular formally withdrawing the RBI circulars adopted by IFSCA shall be issued on
December 31, 2021.
5. Further, provisions of the circulars pertaining to IBUs issued by the Authority has been
duly incorporated in the Handbook and these circulars shall cease to be applicable from
the date of coming into effect of the directions in the Handbook i.e., January 1,2022. A
circular formally withdrawing the circulars issued by IFSCA shall be issued on December
31, 2021.
6. IBUs are directed to ensure compliance to the directions this circular.
Yours faithfully,
Kamlesh Sharma Supriyo Bhattacharjee

General Manager General Manager
kamlesh.sharma27@ifsca.gov.in supriyo.b@ifsca.gov.in
Annexure
List of amendments/additions to provisions under the IFSCA Banking Handbook
GENERAL DIRECTIONS
S.N. Module Module Section Amendment/addition

No. Name
1. 1 LIBU 1 (iii) Requirement of license – for

setting up Representative Offices
(ROs)
2. 1 LIBU 4 Transitional Provisions
3. 2 GOV 2 (c) Definition of the Governing Body
4. 2 GOV 8 Staffing
5. 3 CODF 3 (i) (a) (i), Insertion of the term –‘ Head-IBU’

3 (c), 4 (i)
(a) (i)
6. 3 CODF footnote Application fee for approved

no. 7 & 8 individual
7. 3 CODF Annex Application for Approved

Individual Status in an IBU to
exercise controlled functions.
8. 5 SYSCO 3 (ii) Outsourcing
9. 5. SYSCO 5 (ii) (b) Record Keeping
10. 6 SUP 2 (iv) & (v) Powers of Supervision over IBUs

and Banking business in IFSC
CONDUCT OF BUSINESS DIRECTIONS
S.N. Module Module Section Amendment/addition

No. Name
1. 1 ACBU 2 (iii) Definition of ‘Client’
2. 1 ACBU Footnote Permitted activities

no. 1
3. 1 ACBU 4 (xi) Acting as a Portfolio Manager
4. 1 ACBU 4 (xii) Providing Investment Advisory

Services
5. 1 ACBU 4 (xiv) Bullion trading member and

clearing member in GIFT IFSC
6. 1 ACBU 4 (xvii) Acting as FX Prime Brokerage
7. 1 ACBU 4 (xviii) Undertaking remittances
8. 1 ACBU 4 (xxvi) Operating as an Investment

Banker
9. 1 ACBU 4 (xxvii) Undertake transfer of loan assets
10. 1 ACBU 4 (xxviii) Undertake negotiation of letter of

credit of constituents
11. 2 BIFC New Undertaking business in foreign

module currency
introduced
12. 4 COMFP 2 Definition of ‘Financial Promotion’
13. 7 OEOH 4 Transaction at off-market rates
14. 11 ACDE 4 (i), (iii) & Interest rate framework and other
(iv) requirements
15. 12 REPO 6 (v) Activities of ROs
16. 12 REPO 8 (i) (ii) (iii) Administration

(v) & (vii)
17. 13 OTDE 1 (iii) , 3 (ii) OTC derivatives on Indian

& (iii), 5 Government Bonds (IGBs) and
(d), 18 (ii) State Development Loans
& Annex (SDLs)
2- section
4
18. 13 OTDE 9 (ii) Exchange of margin
19. 13 OTDE 2, 7, 9, 16 The currency for expression of

various limits changed from USD
to Euro – in line with the
guidelines of BIS and FSB
20. 14 FXPB New FX Prime brokerage

module
introduced
21. 16 PRCR 3 (iv) General condition on providing

credit
PRUDENTIAL DIRECTIONS
S.N. Module Module Page No. Amendment/addition

No. Name
1 1 GENPRU 7. Guidance note on stress testing

at IBU level
2 3 PRDS 14 Guidance note on public

disclosure of IBU’s financial
statement.

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International Financial Services Centres Authority

F.No.110/IFSCA/Banking Regulation/2021-22/9 November 12 , 2021

Amendments and additions to IFSCA Banking Handbook and other issues

IFSC Banking units (IBUs) may refer to circular F.No.110/IFSCA/Banking Regulation/2021-

3. The following new modules have been added to the Handbook:

6. IBUs are directed to ensure compliance to the directions this circular.

Kamlesh Sharma Supriyo Bhattacharjee

List of amendments/additions to provisions under the IFSCA Banking Handbook

S.N. Module Module Section Amendment/addition

1. 1 LIBU 1 (iii) Requirement of license – for

2. 1 LIBU 4 Transitional Provisions

3. 2 GOV 2 (c) Definition of the Governing Body

5. 3 CODF 3 (i) (a) (i), Insertion of the term –‘ Head-IBU’

6. 3 CODF footnote Application fee for approved

7. 3 CODF Annex Application for Approved

8. 5 SYSCO 3 (ii) Outsourcing

9. 5. SYSCO 5 (ii) (b) Record Keeping

10. 6 SUP 2 (iv) & (v) Powers of Supervision over IBUs

CONDUCT OF BUSINESS DIRECTIONS

S.N. Module Module Section Amendment/addition

1. 1 ACBU 2 (iii) Definition of ‘Client’

2. 1 ACBU Footnote Permitted activities

4. 1 ACBU 4 (xii) Providing Investment Advisory

5. 1 ACBU 4 (xiv) Bullion trading member and

6. 1 ACBU 4 (xvii) Acting as FX Prime Brokerage

7. 1 ACBU 4 (xviii) Undertaking remittances

8. 1 ACBU 4 (xxvi) Operating as an Investment

9. 1 ACBU 4 (xxvii) Undertake transfer of loan assets

10. 1 ACBU 4 (xxviii) Undertake negotiation of letter of

11. 2 BIFC New Undertaking business in foreign

12. 4 COMFP 2 Definition of ‘Financial Promotion’

13. 7 OEOH 4 Transaction at off-market rates

15. 12 REPO 6 (v) Activities of ROs

16. 12 REPO 8 (i) (ii) (iii) Administration

17. 13 OTDE 1 (iii) , 3 (ii) OTC derivatives on Indian

18. 13 OTDE 9 (ii) Exchange of margin

19. 13 OTDE 2, 7, 9, 16 The currency for expression of

20. 14 FXPB New FX Prime brokerage

21. 16 PRCR 3 (iv) General condition on providing

S.N. Module Module Page No. Amendment/addition

1 1 GENPRU 7. Guidance note on stress testing

2 3 PRDS 14 Guidance note on public

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