International Financial Services Centres Authority (IFSCA) has issued Circular No. F. No. IFSCA-IF-10PR/1/2023-Capital Markets/4 dated July 25, 2024. This circular clarifies that Credit Rating Agencies (CRAs) registered with the Authority under the IFSCA (Capital Market Intermediaries) Regulations, 2021, are now permitted to undertake the valuation of assets of schemes under the IFSCA (Fund Management) Regulations, 2022. This move aligns with existing regulations requiring asset valuations by independent third parties, such as fund administrators, custodians, or registered valuers. The circular is issued under Section 12 and 13 of the International Financial Services Centres Authority Act, 2019, and is effective immediately. For more details, the circular is available on the IFSCA website.
International Financial Services Centres Authority
Circular No. F. No. IFSCA-IF-10PR/1/2023-Capital Markets/4 Dated: July 25, 2024
To,
1. All Credit Rating Agencies in International Financial Services Centres (IFSCs);
2. All Fund Management Entities in IFSCs,
Dear Sir / Madam,
Sub: Valuation of Assets of Schemes under IFSCA (Fund Management) Regulations, 2022 by Credit Rating Agencies at IFSC
1. Reference is drawn to sub-regulation (2) of regulation 26, sub-regulation (2) of regulation 38 and sub-regulation (2) of regulation 50 of the IFSCA (Fund Management) Regulations, 2022, which require the valuation of assets of the scheme by an independent third-party service provider, such as a fund administrator or a custodian, registered with the Authority, a valuer registered with the Insolvency and Bankruptcy Board of India or such other person as may be specified by the Authority.
2. In furtherance to the abovementioned regulations, it is hereby specified that a Credit Rating Agency which has obtained a certificate of registration from the Authority under sub-regulation (1) of regulation 10 of the IFSCA (Capital Market Intermediaries) Regulations, 2021 may also undertake the valuation of assets of the schemes under IFSCA (Fund Management) Regulations, 2022.
3. This circular has been issued in exercise of the powers conferred under Section 12 and 13 of the International Financial Services Centres Authority Act, 2019 read with IFSCA (Fund Management) Regulations, 2022.
4. This circular shall come into force with immediate effect.
A copy of this circular is available on the website of International Financial Services Centres Authority at www.ifsca.gov.in.
Yours faithfully
Sd/-
Pavan Shah
General Manager
Division of Investment Funds – I and New Products & Services
Capital Markets Department
Email: pavan.shah@ifsca.gov.in
Tel: +91-79-61809844
