International Financial Services Centres Authority (IFSCA) Review Flashcards

Flashcards testing regulatory frameworks, tax exemptions, powers of IFSCA, listing guidelines, and timelines based on the International Financial Services Centres Authority (IFSCA) material.

What are the three stock exchanges operating in the capital market infrastructure of the IFSC?

India International Exchange, NSE IFSC, and India International Bullion Exchange.

Under which Act and section was GIFT SEZ established as India's maiden International Financial Services Centre?

Section 18 of the Special Economic Zone Act, 2005.

Which 2007 committee report highlighted the need for setting up an IFSC on Indian soil?

The Percy Mistry committee report.

What income tax exemption benefit is available to units operating in an IFSC?

100% tax exemption for 10 consecutive years out of a 15-year block, with the flexibility to select any 10-year period.

What rate of Minimum Alternate Tax (MAT) or Alternate Minimum Tax (AMT) applies to companies or other entities set up in an IFSC?

$9\%$ of book profits (not applicable to companies opting for the new tax regime).

What concessional tax rate applies to interest income paid to non-residents on Long Term Bonds and Rupee Denominated Bonds listed on IFSC exchanges?

$$4\%$$

Which taxes are levied at NIL rates for transactions carried out on IFSC exchanges?

Security Transaction Tax (STT), Commodity Transaction Tax (CTT), Dividend Distribution Tax (DDT), Long Term Capital Gain (LTCG), and Short Term Capital Gain (STCG).

Which four domestic financial regulators' powers were transferred to the IFSCA in the IFSC jurisdiction?

Reserve Bank of India (RBI), Securities & Exchange Board of India (SEBI), Insurance & Regulatory Development Authority of India (IRDAI), and Pension Fund Regulatory & Development Authority (PFRDA).

On what date did the IFSCA formally assume regulatory and development powers over IFSCs in India?

1st October 2020.

What dual mandate is specifically assigned to the IFSCA under Section 12 of the IFSCA Act, 2019?

To both develop and regulate financial products, financial services, and financial institutions within the IFSCs in India.

Which RBI-administered Act was recently included in the First Schedule of the IFSCA Act, 2019 by virtue of Section 13(2)?

The Factoring Regulation Act, 2011.

How is a "Financial product" defined under Section 3(1)(d) of the IFSCA Act, 2019?

Securities, contracts of insurance, deposits, credit arrangements, foreign currency contracts (other than spot conversion), and any other product/instrument notified by the Central Government.

On what date did the Government of India notify aircraft operating lease as a financial product?

October 06, 2020.

Which two foreign universities have been granted in-principle registration by IFSCA to offer courses in IFSC?

Wollongong University and Deakin University.

What change was enabled by the notification of Section 23(3) of the Companies Act, 2013 on September 28, 2020?

It enabled the listing of equity shares of public Indian companies in permissible foreign jurisdictions, including IFSC.

What financial metrics make an issuer eligible to make an Initial Public Offer (IPO) of specified securities in IFSC under the 2024 Regulations?

Operating revenue of at least USD $20$ million in the last FY or averaged over last 3 FYs; OR pre-tax profit of at least USD $1$ million in the last FY or averaged over last 3 FYs; OR post-issue market capitalization of at least USD $25$ million.

What issue size limit exempts an issuer from filing an offer document with the IFSCA for observations?

An issue size of USD $50$ million or less.

What is the mandatory period for keeping an Initial Public Offer (IPO) open in IFSC?

At least $1$ working day and not more than $10$ working days.

What is the promoter shareholding lockup period following an IPO in IFSC?

Pre-issue shareholding of promoters and controlling shareholders must be locked up for a period of $180$ days from the date of allotment.

What are the offer size and minimum application size requirements for listing a Special Purpose Acquisition Company (SPAC) in IFSC?

Offer size of not less than USD $50$ million, and a minimum application size of USD $100,000$.

What are the minimum offer size and subscription requirements for a Public Offer of Depository Receipts in IFSC?

Not less than USD $700,000$.

What is the required maturity period for Commercial Paper (CP) listed on a recognized stock exchange in IFSC?

Not less than $7$ days and not more than $1$ year.

What regulatory fee must accompany an application for listing Commercial Paper or Certificates of Deposit in IFSC?

USD $1000$.

According to the provided timeline image, what key milestone took place in April 2015?

India's 1st IFSC became operational with RBI, SEBI, and IRDAI notifying regulations.

Based on the provided overview chart, what six main categories represent business activities in IFSC?

Banks, Capital Market, Asset Management, Insurance, Other Financial Institutions, and Emerging Activities.

According to the provided legal framework diagram, what six components comprise the legal framework structure in GIFT-IFSC?

1. Act, 2. Rules, 3. Regulations, 4. Notifications, 5. Circulars, and 6. Guidelines.