IFSCA (Investment by International Financial Services Centre Insurance Office) (Amendment) Regulations, 2023: On the 25th of October, 2023, the International Financial Services Centres Authority (IFSCA) issued a significant notification regarding the amendment of the International Financial Services Centre Insurance Office Regulations.
1. Short Title and Commencement: The notification highlights that the amended regulations will be known as the “International Financial Services Centres Authority (Investment by International Financial Services Centre Insurance Office) (Amendment) Regulations, 2023.” Furthermore, these regulations will come into effect upon their publication in the Official Gazette. This ensures that the changes will be applicable as soon as they are officially announced.
2. Change in Terminology: The amendment eliminates the words “on Foreign Portfolio Investment” from the clause (b) of sub-regulation (7) of regulation 5. This adjustment implies a modification in the scope or restrictions on foreign portfolio investments by the Insurance Office.
3. Inclusion of “and/or”: The clause (b) of sub-regulation (7) of regulation 5 is further modified by replacing the word “and” with “or” after “Reserve Bank of India.” This change allows for flexibility in compliance with either of these authorities, indicating a potentially broader spectrum of options for the Insurance Office.
4. Exemption Clause: An entirely new sub-regulation, numbered (9), is introduced in regulation 5. It states that regulations 10, 11, 12, and 13 are not applicable to the Insurance Office when it invests its retained premium in DTA (Domestic Treaty Accounts) to meet the specified conditions under sub-clause (b) of clause (A) of sub-regulation (2) of regulation 5 of the IRDAI (Insurance Regulatory and Development Authority of India) (Re-insurance) Regulation, 2018. This exemption provides clarity on investment practices and compliance standards.
5. Change in Regulation 20 Title: Regulation 20 sees a change in its title from “Repeals and Savings” to “Non-applicability of certain regulations and savings.” This suggests that certain regulations may not apply in specific contexts, while savings provisions remain in place.
6. Conclusion: The IFSCA’s recent notification introduces critical amendments to the International Financial Services Centre Insurance Office Regulations. These changes impact the short title, commencement, terminology, and compliance standards. Additionally, a new exemption clause is established, providing more clarity on investment practices. The alteration of Regulation 20’s title indicates a shift in focus. This notification signifies a significant development within the financial sector, and stakeholders should stay informed about its implications and adapt their strategies accordingly.
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
NOTIFICATION
Gandhinagar, the 25th October, 2023
International Financial Services Centres Authority (Investment by International Financial Services Centre Insurance Office) (Amendment) Regulations, 2023
No. IFSCA/2023-24/GN/REG042.—In exercise of the powers conferred by sub-section (1) of Section 28 read with Section 12 and 13 of the International Financial Services Centres Authority Act, 2019, the International Financial Services Centres Authority hereby makes the following Regulations to amend the International Financial Services Centres Authority (Investment by International Financial Services Centre Insurance Office) Regulations, 2022 namely:-
1. Short title and commencement:-
(1) These Regulations may be called the International Financial Services Centres Authority (Investment by International Financial Services Centre Insurance Office) (Amendment) Regulations, 2023;
(2) They shall come into force from the date of their publication in the Official Gazette.
2. In the clause (b) of sub-regulation (7) of regulation 5, the words “on Foreign Portfolio Investment,” shall be
3. In the clause (b) of sub-regulation (7) of regulation 5, after “Reserve Bank of India”, the word “and” shall be substituted with the word “or”.
4. In the regulation 5, after sub-regulation (8) the following shall be inserted, namely –
“(9) Nothing contained in Regulations 10, 11, 12 and 13 of these regulations shall be applicable to an IIO investing its retained premium in DTA, if the investment is done to comply with the condition specified under sub-clause (b) of clause (A) of sub-regulation (2) of regulation 5 of the IRDAI (Re-insurance) Regulation, 2018.
Explanation – The mode and manner for such investments shall be in accordance with these regulations;”
5. In regulation 20, the words“Repeals and Savings:” shall be substituted with words “Non-applicability of certain regulations and savings:”
K. RAJARAMAN,Chairperson
[ADVT.-III/4/Exty./514/2023-24]
Note : The International Financial Services Centres Authority (Investment by International Financial Services Centre Insurance Office) Regulations, 2022 were published in the Gazette of India Extraordinary vide notification No. IFSCA/2022-23/GN/REG030 on 13th January, 2023.
