INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
NOTIFICATION
Gandhinagar, the 11th October, 2022
International Financial Services Centres Authority (Setting up and Operation of International
Branch Campuses and Offshore Education Centres) Regulations, 2022.
No. IFSCA/2022-23/GN/REG027.—In exercise of powers conferred by sub-section (1) of Section 28, read with sub-section (1) of Section 12 and sub-section (1) of Section 13 of the International Financial Services Centres Authority Act, 2019, the International Financial Services Centres Authority hereby makes the following Regulations, namely: –
Objectives
a. To enable Foreign Universities to establish International Branch Campuses in GIFT International Financial Services Centre (hereinafter referred to as the GIFT IFSC) either on stand-alone basis, or in such other form as may be permitted by the Authority.
b. To enable a Foreign Educational Institution other than a Foreign University to establish an Offshore Educational Centre in the GIFT IFSC.
c. To make the GIFT IFSC an international educational centre catering to both Indian and foreign students in the specified disciplines.
d. To encourage research in Banking, Insurance, Capital Market, Funds Management, FinTech, Longevity Finance, Sustainable Finance, Quantum Computing, etc., to provide high-end human resources in finance, technology and related fields.
e. To encourage executive education in the specified disciplines and related areas.
f. To ensure world-class education in GIFT IFSC.
g. To safeguard the interests of the student community pursuing such courses in GIFT IFSC.
h. To put in place an objective and transparent process for registration of a Foreign University/ Foreign Educational Institution for offering courses including research programmes in the permissible subject areas and executive education programmes, that are accredited in their respective home jurisdiction, and duly recognized by the Authority for being offered in the GIFT IFSC.
1. Short title and commencement:
(1) These regulations may be called the International Financial Services Centres Authority, (Setting up and Operation of International Branch Campuses and Offshore Education Centres) Regulations, 2022
(2) These regulations shall come into force from the date of their publication in the Official Gazette.
2. Applicability:
These regulations shall be applicable to an International Branch Campus (“IBC”) or an Offshore Educational Centre (“OEC”) of a Foreign University or a Foreign Educational Institution respectively, seeking registration under these regulations.
3. Definitions:
(1) For the purpose of these regulations unless the context otherwise requires:
(i) “Act” shall mean the International Financial Services Centres Authority Act, 2019;
(ii) “Authority” means the International Financial Services Centres Authority established under sub-section (1) of section 4 of the Act;
(iii) “Foreign Educational Institution” shall mean an education institution outside India, which is not a university, and is duly authorized to offer courses including research programmes in the permissible subject areas, within and outside its home jurisdiction;
(iv) “Foreign University” shall mean a university established outside India which is duly accredited to award degree for courses including research programmes in the permissible subject areas, within and outside its home jurisdiction;
(v) “International Branch Campus” or “IBC” shall mean a campus set up as a branch by a Foreign University on stand-alone basis, or in such other form as may be permitted by the Authority in the GIFT IFSC for the purpose of delivering courses including research programmes in the permissible subject areas, that are duly accredited under the relevant framework in their respective home jurisdiction, and is registered with the Authority;
(vi) “Offshore Education Centre” or “OEC” shall mean a centre set up as a branch by a Foreign Educational Institution (other than a Foreign University) in the GIFT IFSC on stand-alone basis or in such other form as may be permitted by the Authority for the purpose of delivering courses including research programmes in the permissible subject areas, that are duly accredited under the relevant framework in their respective home jurisdiction, and is registered with the Authority;
(vii) “Parent Entity or Applicant” shall mean the Foreign University or a Foreign Educational Institution that intends to establish and operate an IBC or OEC, as the case may be, in the GIFT IFSC.
(viii) “QS world university ranking” refers to the annual publication of university rankings by QS Quacquarelli Symonds Ltd. and for the purpose of these regulations, only the University’s „global overall ranking’ and / or the „subject rankings’ shall be considered.
(2) The words „IBC or OEC’, used in these regulations, shall be construed as “IBC or OEC, as the case may be”.
(3) Words and expressions used and not defined in these regulations but defined in the Act or Acts mentioned in the First Schedule to the Act, or any rules or regulations made thereunder, shall have the same meanings respectively assigned to them in those Acts, rules or regulations or any statutory modification or re-enactment thereto, as the case may be.
4. Permissible Subject Areas
Courses including research programmes in Financial Management, FinTech, Science, Technology, Engineering and Mathematics shall be permitted in GIFT IFSC.
5. Eligibility
(1) In case the Applicant is a Foreign University, it should have secured a position within Top 500 in global overall ranking and / or subject ranking in the latest QS World Universities ranking.
(2) In the case of Foreign Educational Institution, the Applicant should be a reputed Institution in its home jurisdiction.
(3) The Applicant shall satisfy the Authority about its financial capability to establish and ensure the continuity of the proposed activities in GIFT IFSC.
(4) The Applicant shall undertake to put in place suitable infrastructure and facilities to conduct the courses including research programmes in the permissible subject areas.
6. Application for Registration
(1) An Applicant satisfying the eligibility conditions specified in these regulations, shall apply to the Authority, in the specified format, for the grant of registration to conduct the courses including research programmes or/and executive education programmes. in the permissible subject areas.
(2) An Application shall be accompanied by-
a) a resolution passed by the Applicant’s Board of Trustees, Senate or other Governing Body, by whatever name called, resolving establishment of IBC or OEC;
b) details regarding infrastructural facilities, facilities available for instruction, faculty, prescribed fee, academic plan, courses, curricula and requisite funds to operate for a minimum period of five years, along with other relevant details as may be specified;
c) details of the alternative arrangements for students in the event of discontinuation of the course or program for any reason;
d) an undertaking by the Applicant declaring that the degrees, diplomas or certificates issued to the students in the GIFT IFSC shall be recognized in the home jurisdiction of the Parent Entity and shall be treated equivalent to the corresponding degrees, diplomas or certificates awarded or issued, as the case may be, by the Parent Entity in its home jurisdiction; and
e) the latest Quality Assurance Audit report from a recognized Quality Assurance Agency in the home jurisdiction of the Applicant.
7. Procedure for Grant of Registration
(1) An application received under these regulations shall be referred to the Committee of Experts constituted by the Gujarat International Finance Tec City Company Limited for appraisal and recommendations.
(2) Based on the recommendations of the Committee of Experts, the Authority may upon its satisfaction, at first instance, grant in-principle approval to the Applicant giving it one hundred and eighty (180) days’ time to set up all required infrastructure and engage necessary manpower etc.
Provided that if an applicant is not able to set up the required infrastructure and /or engage necessary manpower etc. within the specified period of one hundred and eighty (180) days, it may, before expiry of such period, but at least seven (7) days in advance, make an application, for extension of time, to the Chairperson of the Authority.
(3) On receipt of the application, if satisfied with the reasons for delay, the Chairperson may extend the period for not more than Ninety (90) days;
Provided that an application for extension of date beyond the period referred in sub-regulation (3), shall be entertained only with the approval of the Board of the Authority.
(4) The Authority on being satisfied that the applicant fulfills all the conditions for the grant of registration, may issue a Certificate of Registration with or without conditions.
(5) The registration, once granted, shall be valid for a period of five years and be renewable for an additional period of five years at a time, with or without any additional condition(s), as the Authority may deem fit.
(6) The registration may be cancelled, or renewal may be refused by the Authority, for reasons to be recorded in writing, after following due procedure and giving due opportunity to the registered entity.
8. Course Recognition:
(1) Any course or programme conducted by a registered entity in the GIFT IFSC shall be identical in all respects with the course or programme conducted by the Parent Entity in its home jurisdiction and identical degree, diploma or certificate shall be conferred upon the students of the IBC or OEC directly by the Parent Entity in the same manner as it confers to its students for the same course or programme in its home jurisdiction.
Provided that IBC or OEC may make modifications in the approved course curriculum or content with prior intimation to the Authority, if the same is necessitated due to the change effected in the course offered by the Parent Entity.
Provided further that any modification in the course curriculum or content vis-à-vis course offered by the Parent Entity in its home jurisdiction shall be carried out with prior approval of academic council, syndicate or any other competent body, by whatever name called, of the Parent Entity and shall be effected only after intimation to the Authority.
(2) The degree, diploma or certificate issued with respect to courses or programmes conducted in the GIFT IFSC shall enjoy the same recognition and status as if they were conducted by the Parent Entity in its home jurisdiction.
9. Non-Permissible Activities:
An IBC or OEC shall not act as representative office of the Parent Entity for the purposes of undertaking promotional activities for their programmes in their home jurisdiction or any other jurisdiction outside GIFT IFSC.
10. Other Conditions:
(1) The IBC or OEC shall use the same or similar name as that of the Applicant, unless permitted otherwise by the Authority.
(2) The IBC or OEC shall provide the Authority with a copy of the Memorandum of Understanding between the Parent Entity and its IBC or OEC, in the GIFT IFSC.
(3) The student and faculty selection plan and process followed by the IBC or OEC shall be identical and similar to that of process followed by the Applicant and any relaxation or deviation from it shall require prior approval of the Authority, subject to adequate justification.
(4) The policies and internal regulations of the IBC or OEC, in relation to the student complaint and grievance redressal shall be in accordance with the approved policy of the Applicant.
(5) The IBC or an OEC shall undergo quality assurance audit as specified, and submit the report to the Authority at the time of renewal of registration.
(6) All activities conducted by IBC or OEC shall be in accordance with the Applicant’s mission, vision and objectives.
(7) All marketing communications or advertisements placed by the IBC or OEC shall be factual with accurate mentions of the roles and purpose of accreditations and shall not be misleading or exaggerated.
(8) The IBC or OEC shall adhere to dispute resolution policy as specified by the Authority.
11. Action in case of default
Violation of these regulations may attract appropriate enforcement action including suspension, cancellation of registration and/or imposition of penalty by the Authority.
12. Inspection
(1) Authority shall have right to inspect at all times, including after the grant of in-principle approval and before the grant of registration, to ascertain the infrastructure, quality and suitability of the IBC or OEC.
(2) For the purposes of the inspection, the Authority may appoint one or more persons as „Inspecting Authority’ to undertake the inspection of the IBC or OEC.
(3) The Inspecting Authority may take help of such persons or professionals as he may deem fit and it shall be the duty of the IBC or OEC to extend full co-operation to the Inspecting Authority or persons authorised by him.
13. Safeguarding the interest of Students
(1) No IBC or OEC shall wholly or partially discontinue, suspend or close any of its approved courses or programmes in the permissible subject areas for any reason without the prior written approval of the Authority.
(2) In the eventuality of disruption or discontinuation of a course or programme for any reason, it shall be the responsibility of the Parent Entity to provide an alternative to the affected students, including reallocation to the course or programme conducted by it.
14. Currency for Conduct of Business:
All transactions undertaken by the IBC or OEC shall be in freely convertible foreign currency only.
Provided that the IBC or OEC may defray their administrative expenses in INR by maintaining a separate Special Non-Resident Rupee Account.
15. Maintenance of Accounts and Annual Report:
(1) The IBC or OEC shall maintain such records and documents, as may be specified by the Authority.
(2) All the books of accounts shall be maintained in such foreign currency, as may be declared at the time of making the application.
(3) IBC or OEC shall submit an annual report giving details of the number of students admitted, programmes conducted, total fee collected, amount repatriated to Parent Entity, investment made, number of students awarded degree/ diploma/ certificate, etc.
16. Deposit and Fees:
(1) The Authority, after considering the scale of operation of IBC or OEC, may require them to submit such deposit, in such form, as it may deem fit.
(2) An IBC or OEC desirous of undertaking permissible activities shall pay to the Authority the following fees:
(i) Application Fee: US$ 1,000 (one time)
(ii) Initial Registration Fee: US$25,000(one time)
(iii) Annual Fee: US$ 10,000 (Second year onwards)
(iv) Processing fee for application seeking relaxation: US$10,000
17. Miscellaneous
(1) All the obligations of the Parent Entity in its home jurisdiction for the conduct of courses or programmes in any offshore jurisdiction shall be complied with by IBC or OEC, as the case may be.
(2) The Parent Entity shall be permitted to repatriate profit, if any, without any restriction.
18. Power to remove difficulties and relax strict enforcement of the regulations
(1) In order to remove any difficulty in the application or interpretations of the provisions of these regulations, the Authority may issue clarifications through guidance notes or circulars.
(2) On an application, received along with non-refundable processing fees mentioned in reg. 16 (2) (iv) above, the Authority, may for the reasons to be recorded in writing, relax the strict enforcement of any of the provisions of these regulations.
INJETI SRINIVAS, Chairman, IFSCA
[ADVT.-III/4/Exty./331/2022-23]
