An Overview Of International Financial Services Centres Regulations: Trilegal
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International Financial Services Centres are special economic zones in India set up with the intent of catering to international market participants in the financial services economy, and to promote ease of doing business. IFSCs enjoy various fiscal benefits, including taxation.
The IFSCA, on July 16, 2021, notified the International Financial Services Centres Authority (Issuance and Listing of Securities) Regulations, 2021, superseding the Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015.
The Regulations provide a consolidated regulatory framework (under the jurisdiction of a single regulator, as the erstwhile regulations were prescribed by SEBI) for accessing capital markets by issuance and listing of securities by various entities.
The Regulations provide for various avenues to access capital markets through IFSC Stock Exchanges, including those which are prevalent in international markets. These avenues include extant structures such as IPOs, FPOs, preferential issues, rights issues, issuance of depository receipts and debt securities (through IFSC Stock Exchanges).
Some new avenues that have been introduced include listing of securities by start-ups, secondary listings, IPOs by Special Purpose Acquisition Companies (SPACs), Environment, Social and Governance ( ESG) debt securities, masala bonds and medium term note programmes (through IFSC Stock Exchanges).
This alert focusses on some of the key aspects of raising capital in IFSCs.
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