, CS GAURAV SHARMA

Tuesday, May 22, 2018

Sebi Latest Circular on Investment of own funds IFSC

Corporate Updates Tuesday 22nd May 2018

 


SoftBank agrees to sell Flipkart stake to Walmart 
Former Infosys CEO Vishal Sikka earned about Rs 13 crore in FY18 
Nokia phone maker HMD Global raises $100M for aggressive expansion 
EV Charging Stations may well be sustainable but are they viable? 
Zendesk to focus on India as business grows faster than global growth rate 
After Flipkart's big moment, startups dream big 
Ather Energy unveils its charging infrastructure network AtherGrid 
Employees under lens for leaking earnings data 
NewsDog raises $50M Series C funding from Tencent & others 
ETtech Morning Briefing: SoftBank's Flipkart stake sale, Vishal Sikka's salary & more 
Flipkart bullish on online furniture sales 
The line between big tech and defense work 
Airtel, Vodafone and Jio bet on blockchain to cut costs, push revenue 
Netflix signs multi-year content deal with Barack & Michelle Obama 
Milkbasket raises $7M in Series A funding from Kalaari & others 
Fintech startup EarlySalary buys CashCare to expand to consumer financing 


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Monday, May 21, 2018

Setting up of IFSC Banking Units (IBUs) – Permissible activities

Please refer to RBI circular DBR.IBD.BC.14570/23.13.004/2014-15 dated April 01, 2015, as modified from time to time, setting out RBI directions relating to IFSC Banking Units (IBUs).
2. In terms of para 2.3 of the circular, the parent bank will be required to provide a minimum capital of USD 20 million or equivalent in any foreign currency to start their IBU operations and the IBU should maintain the minimum prescribed regulatory capital on an on-going basis as per regulations amended from time to time.
3. In this regard, we have received suggestions from the stakeholders to consider minimum prescribed regulatory capital at the parent level rather than at the IBU level. The issue has been examined and the directions stand modified as follows:
4. The existing paragraph No.2.3 of Annex I of the aforesaid circular dated April 1, 2015 is amended to read as follows:
With a view to enabling IBUs to start their operations, the parent bank will be required to provide a minimum capital of USD 20 million or equivalent in any foreign currency to its IBU which should be maintained at all times. However, the minimum prescribed regulatory capital, including for the exposures of the IBU, shall be maintained on an on-going basis at the parent level.
5. The existing paragraph No.2.3 of Annex II of the aforesaid circular dated April 1, 2015 is amended to read as follows:
With a view to enabling IBUs to start their operations, the parent bank will be required to provide a minimum capital of USD 20 million or equivalent in any foreign currency to its IBU which should be maintained at all times. However, the minimum prescribed regulatory capital, including for the exposures of the IBU, shall be maintained on an on-going basis at the parent level as per regulations in the home country and the IBU shall submit a certificate to this effect obtained from the parent on a half-yearly basis to RBI (International Banking Division, DBR, CO, RBI). The parent bank will be required to provide a Letter of Comfort for extending financial assistance, as and when required, in the form of capital / liquidity support to IBU.
6. All other terms and conditions contained in the aforementioned circular remain unchanged.
7. An updated copy of the RBI circular on IBU dated April 01, 2015 incorporating the amendments made on January 07, 2016November 10, 2016April 10, 2017and May 17, 2018 is available on RBI’s website.



Company Secretary GAURAV SHARMA+919990694230 Connect on Watts App with Gaurav Email us [email protected] Submit your guest articles for our website click here we will publish it Subscribe our Email updates like other 300,000 Members, Free/Easy/Comfortableway