Finance Ministry

International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations 2021

International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations 2021

The International Financial Services Centres Authority has notified the International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations, 2021

As per the Regulations, no person shall conduct, organise or assist in organising any stock exchange, clearing corporation or depository in an International Financial Services Centres  (IFSC) unless he has obtained recognition from the Authority.

The Regulation provides for the requirements for the grant of recognition, regulatory fee payable, renew and/or withdrawal of recognition.

Further, for a recognised market infrastructure institution a minimum net worth of USD 3 million is required. The audited net worth certificate from the statutory auditor is to be submitted on a yearly basis.

The norms for the Governance of market infrastructure institution require that it shall adopt the broader principles of governance prescribed under the Principles for Financial Market Infrastructures by Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) and other governance norms specified by the Authority, from time to time. The governing board shall include shareholder directors, public interest directors, and managing director, within the specified timeline. Further the directors and key management personnel shall abide the specified Code of Conduct.

Further, the Regulations lay down the general obligations of recognised stock exchange, recognised clearing corporations and recognised depository.

Also, the recognised market infrastructure institution are required to maintain a website or any other universally accessible repository of electronic information. They shall also appoint a compliance officer who shall be responsible for monitoring the compliance of the applicable laws including securities laws, compliances with IFSCA Act and rules and regulations made thereunder and for redressal of investors’ grievances.

A recognised market infrastructure institution shall furnish annual financial statements, prescribed returns, statements and particulars to the Authority.
 

Download Full Regulations Click Here >>

 
 
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