New Delhi: The Government is ready to free non -banking creditors registered with the International Financial Services Office (IFSCA) from the provisions of the Act on Companies Regulating Loans, Guarantee and Investment of the Company.
The Ministry of Business Affairs stated in the order that IFSCA received an exemption for the financial companies that registered with it, which is in line with a similar exception with non -bank creditors registered with the Indian Reserve Bank (RBI).
The proposed exception is expected to help dozens of financial companies registered by IFSCA.
The central bank is represented in the administrative framework of IFSCA, which oversees the financial center in the gift city, Gujarat. IFSCA is a unified authority for the development and regulation of services and institutions in the international centers of financial services established in India.
This step comes after the Minister of Finance and Business Affairs Nirmala Sithaman called on the regulatory bodies and parties in the gift city on Thursday to speed up the efforts to attract more foreign capital into the country through structured and well -regulated mechanisms.
The Ministry of Business Affairs said that non -banking financial companies or NBFCs that are registered with RBI and provide loans or guarantees are exempt from the requirements of the section in the Act on Loans, Investing and Guarantees or Securities.
Section 186 of the Company Act also sets the limits and approval required for such financial transactions. The Ministry said that IFSCA has applied for a change in the rule to include “financial companies” registered with IFSCA to its extent, so relaxation available for NBFC registered RBIs is available to these financial companies.
“This proposal is aimed at providing easy business companies in IFSC jurisdiction,” said the Ministry, adding that he consulted the Ministry of Economic Affairs in the Ministry of Finance, RBI and IFSCA for changing the rule.
The ministry also stated that by July 17th, the admission of proposals was opened through the official portal. The government offers a trouble -free operational environment for businesses in a gift city as part of their efforts to develop it in the global financial nerve center.
IFSCA is a unified authority for the development and regulation of services and institutions in the international centers of financial services established in India.
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