The Securities and Exchange Board of India (SEBI) on August 21, 2020 has issued a circular to amend Securities and Exchange Board of India (International Financial Services Centres) Guidelines- 2015 as issued on March 27, 2015, August 31, 2017, and February 27, 2020.
The following amendments have been made to the Guidelines:
• Clause 19, which specifies that the listed entities shall maintain statements of accounts in accordance with the accounting standards, has been substituted, namely:
“The entities issuing and/or listing their debt securities in IFSC shall prepare their statement of accounts in accordance with IFRS/ US GAAP/ IND AS or accounting standards as applicable to them in their place of incorporation. In case an entity does not prepare its statement of accounts in accordance with IFRS/ US GAAP/ IND AS, a quantitative summary of significant differences between national accounting standards and IFRS shall be prepared by such entity and incorporated in the relevant disclosure documents to be filed with the exchange.”
• Further, there is no need to provide the quantitative summary of the difference and a statement of difference between local accounting systems would be suitable.
[Circular No. SEBI/HO/MRD1/DSAP/CIR/P/2020/154]
