The International Financial Services Centres Authority (IFSCA) has issued a pivotal circular addressing the reporting norms for Capital Market Intermediaries (CMIs) operating within the International Financial Services Centre (IFSC). Dated February 08, 2024, this circular outlines the updated requirements and procedures for CMIs in compliance with the IFSCA (Capital Market Intermediaries) Regulations, 2021, and supersedes previous directives to ensure a streamlined and efficient regulatory oversight mechanism.
New Reporting Framework
Under the new directive, CMIs are mandated to submit quarterly reports to the Authority in specific formats accessible through the IFSCA’s official website. These reports must encapsulate quantitative and operational data about the CMIs’ activities, provided in an editable Excel format, alongside a signed undertaking in a scanned PDF format. The intention behind these varied formats is to facilitate a comprehensive and verifiable submission process that ensures transparency and accountability.
Submission Deadlines and Procedures
The circular specifies the initial reporting period as October 01, 2023, to December 31, 2023, with a submission deadline set for February 28, 2024. Subsequent reports are due within 15 calendar days following the end of each quarter, marking a standardized timeline for all CMIs to follow. Importantly, submissions are to be made via email to a dedicated address, streamlining the process and providing a direct line of communication between the CMIs and the Authority.
Ongoing Authority Oversight
The IFSCA emphasizes its commitment to ongoing supervision and monitoring of CMIs within the IFSC, hinting at the possibility of future updates or supplements to the reporting formats as deemed necessary. This approach indicates a dynamic regulatory environment where feedback and operational insights can lead to adjustments in reporting requirements, ensuring they remain relevant and effective in overseeing capital market activities.
Phasing Out Previous Requirements
With the introduction of this circular, specific previous reporting requirements, particularly for Investment Bankers as detailed in a 2021 circular, have been rescinded. This move is aimed at consolidating reporting obligations and eliminating redundant or overlapping requirements, thereby simplifying the compliance landscape for CMIs within the IFSC.
Conclusion
The latest circular from the IFSCA marks a significant update in the regulatory framework for Capital Market Intermediaries operating in the IFSC. By specifying detailed reporting norms, submission procedures, and deadlines, the Authority aims to enhance transparency, efficiency, and regulatory compliance among CMIs. This initiative not only aligns with the IFSCA’s mandate to supervise and regulate financial services in the IFSC but also supports the broader objective of fostering a robust, transparent, and dynamic capital market ecosystem.
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International Financial Services Centres Authority
Circular No. F. No. 1/IFSCA/CMI Supervision/2023-24 Dated: February 08, 2024
To,
All Capital Market Intermediaries in the International Financial Services Centre (IFSC) (including Registered Distributors)
Dear Sir / Madam,
Sub: Reporting norms for Capital Market Intermediaries under IFSCA (Capital Market Intermediaries) Regulations, 2021 and under IFSCA Circular – F.No.817/IFSCA/Distribution/2022-23 dated December 21, 2022.
In exercise of the powers conferred under Section 12 and 13 of the International Financial Services Centres Authority Act, 2019, read with Regulation 15 of the IFSCA (Capital Market Intermediaries) Regulations, 2021, the International Financial Services Centres Authority (“Authority”) hereby specifies the reporting norms for Capital Market Intermediaries (“CMIs”) in IFSC as under:
1. CMIs shall submit information to the Authority in the prescribed formats (provided at https://ifsca.gov.in/Downloadfile/Index) on a quarterly basis.
2. The quarterly report to the Authority shall include:
a. Quantitative information and other information sought in the prescribed format about the operations of the CMI, which shall be submitted in an editable excel file.
b. A signed undertaking which shall be submitted as a scanned PDF file in the prescribed format.
3. While the first report under this Circular, corresponding to the period October 01, 2023 to December 31, 2023, shall be submitted latest by February 28, 2024, the subsequent reports for each quarter shall be submitted within 15 calendar days from the end of the quarter.
4. The reports shall be submitted to the Authority by way of an email to cmi- supervision@ifsca.gov.in.
5. The Authority will continue to monitor Capital Market Intermediaries in IFSC and may supplement / update the reporting formats, if so required.
Accordingly, at the end of each quarter, the CMIs shall access the latest reporting formats from the IFSCA website under the “Downloads” section (https://ifsca.gov.in/Downloadfile/Index).
6. This circular shall come into force with immediate effect.
7. With effect from the date of this circular, Reporting Requirements for Investment Bankers as specified at Sr. No. 6 of IFSCA Circular F. No. IFSCA-PLNP/4/2021- Capital Markets dated December 03, 2021 (https://www.ifsca.gov.in/Document/Legal/investment-banking-in-the- ifsc03122021035011.pdf ) shall stop being in force.
Yours faithfully
Sd/-
Amit Prajapati
Deputy General Manager
Division of Supervision of Intermediaries
Department of Capital Markets
Email: prajapati.amit@ifsca.gov.in
Tel: +91-079-6180988
