Amendment of Securities Contracts (Regulation) Rules, 1957: Introduction of IFSC Definitions and Revised Listing Requirements.
28 August 2024
The Securities Contracts (Regulation) Amendment Rules, 2024, introduce changes to the Securities Contracts (Regulation) Rules, 1957. The amendment rules, effective from their publication date, incorporate the following updates:
1. New Definitions: Two new definitions are added to rule 2:
- International Financial Services Centre (IFSC): Defined as per the International Financial Services Centres Authority Act, 2019.
- International Financial Services Centres Authority (IFSCA): Refers to the authority established under the same Act.
2. Listing Requirements Adjustment: In rule 19, an explanation modifies listing requirements for companies seeking to list securities on exchanges in an IFSC. Specifically, the threshold for post-issue capital is reduced from 25% to 10%, and some provisions are excluded.
3. Listing Compliance: Rule 19A is amended to adjust compliance requirements for companies listed in an IFSC. References to 25% in earlier sub-rules are changed to 10%, and certain provisos are not applicable.
These amendments aim to facilitate the functioning of financial entities within IFSCs by modifying regulatory thresholds and requirements.