SEBI sets norms to govern international financial centres
The Securities and Exchange Board of India (SEBI) approved guidelines to govern international financial services centres (IFSC). These guidelines were approved by SEBI board meeting on 22 March 2015.
The news guidelines relax the norms for Stock exchanges and clearing corporations to set up IFSC. It also relaxes norms and allows existing exchanges to set up their subsidiaries in the IFSC
- Stock exchanges will be set up with Rs. 25 crore capital. This capital is against the previous normal requirement of 100 crore rupees.
- However, this initial capital should be raised to 100 crore rupees within next 3 years. Such exchanges will also be given 3 years to complete de-mutualisation.
- The initial capital requirement will be 50 crore rupees for a clearing corporation, against the previous norm of Rs. 300 crore. But it will have to be achieved within 3 years period.
- IFSC will be established under the Special Economic Zone (SEZ) Act of 2005 and the issue of depository receipts and other securities by foreign issuers under the Foreign Currency Depository Receipts Scheme, 2014, will also be allowed.
During the budget speech of 2015-16, Union Finance Minister Arun Jaitley had announced relaxed guidelines in order to pave way for establishing Gujarat International Finance Tec-city (GIFT), the first IFSC in Ahmadabad.