The International Financial Services Centres Authority (IFSCA) on May 02, 2024, issued a circular regarding the Issuance of Derivative Instruments against Indian securities by non-bank entities in GIFT-IFSC.
The Authority had permitted IFSC Banking Units, registered with SEBI as FPIs, to issue Derivative Instruments with Indian securities as underlying, in GIFT-IFSC.
As a second phase, it has now been decided to permit IFSCA registered non-bank entities, registered with SEBI as FPIs, to issue Derivative Instruments with Indian securities as underlying, in GIFT-IFSC.
The following Responsibilities of the issuer entity are as stated:
The entity issuing such Derivative Instruments in GIFT-IFSC shall ensure compliance with the requirements for issuance of ODIs, issued by SEBI and IFSCA, from time to time.
The entity shall furnish the requisite information to the Clearing Corporations in GIFT-IFSC in the format as may be prescribed, latest by the tenth day of every month.
[Circular No. IFSCA/CMD-DMIIT/NBE-DI/2024-25/001]
