Exemptions to IFSC Companies under Companies Act, 2013

An IFSC (International Financial Service Centre) caters to customers outside the jurisdiction of the domestic economy. IFSCs are set up in special economic zones as a unit of SEZ...

An IFSC (International Financial Service Centre) caters to customers outside the jurisdiction of the domestic economy. IFSCs are set up in special economic zones as a unit of SEZ or as a special economic zone after approval from central government and deal with flows of finance, financial products, and services across borders.

An unlisted public company which is licensed to operate by the Reserve Bank of India or the Securities and Exchange Board of India or the Insurance Regulatory and Development Authority of India from the International Financial Services Centre located in an approved multi-services Special Economic Zone set-up under the Special Economic Zones Act, 2005 (28 of 2005) read with the Special Economic Zones Rules, 2006 (hereinafter referred to as “Specified IFSC public company”)

A private company which is licensed to operate by the Reserve Bank of India or the Securities and Exchange Board of India or the Insurance Regulatory and Development Authority of India from the International Financial Services Centre located in an approved multi-services Special Economic Zone set-up under the Special Economic Zones Act, 2005 (28 of 2005) read with the Special Economic Zones Rules, 2006 (hereinafter referred to as “Specified IFSC private company”)

Services offered by IFSC(s):-1. Fundraising services for individuals, corporations and governments 2. Asset management and global portfolio diversification undertaken by pension funds, insurance companies and mutual funds

  1. Fundraising services for individuals, corporations and governments 2. Asset management and global portfolio diversification undertaken by pension funds, insurance companies and mutual funds
  2.  Asset management and global portfolio diversification undertaken by pension funds, insurance companies and mutual funds
  3. Wealth management
  4.  Global tax management and cross-border tax liability optimization, which provides a business opportunity for financial intermediaries, accountants, and law firms.
  5. Global and regional corporate treasury management operations that involve fundraising, liquidity investment and management and asset liability matching
  6.  Risk management operations such as insurance and reinsurance
  7. Merger and acquisition activities among transnational corporations

Formation of an IFSC Public/Private Company as per Companies Act, 2013 and other regulatory frameworks:-

  • IFSC companies have to be licensed to operate by one of the three – the Reserve Bank of India, the Securities and Exchange Board of India (SEBI) and the Insurance Regulatory Authority of India (IRDA).
  • Specified IFSC public company or Specified IFSC Private Company shall be formed only as a company limited by shares as per the notification dated 04th January 2017 by the Ministry of Corporate Affairs. The same is available on the below-mentioned link http://www.mca.gov.in/Ministry/pdf/IFSC_Public_04012017.pdf http://www.mca.gov.in/Ministry/pdf/IFSC_Private_04012017.pdf (For IFSC Private Companies). The rest process of formation of company will be same as per the applicable provisions of Companies Act, 2013

RELAXATIONS GIVEN BY GOVERNMENT (MINISTRY OF CORPORATE AFFAIRS) TO IFSC COMPANIES:

In exercise of powers under the Section 462(1) of Companies Act, 2013 (“the Act”), the MCA has exempted the Companies which are licensed to operate by the RBI or SEBI or IRDA from the International Financial Services Centre (“IFSC”) located in an approved multi-services Special Economic Zone set-up under the Special Economic Zones Rules, 2006 (“IFSC Public/Private Company”).

 

Categories
Corporate Laws
No Comment

Leave a Reply

*

*




Ask for FREE
Consultancy now.











RELATED BY

Feedback & Support