Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015 – Amendments

Last updated: 25 August 2020

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The Securities and Exchange Board of India (SEBI) has issued amendments to the SEBI (International Financial Services Centres) Guidelines, 2015. These changes, aimed at streamlining operations in IFSC, specifically amend Clause 19 concerning the accounting standards for entities issuing or listing debt securities. Issuers must now prepare accounts following IFRS/US GAAP/IND AS or their home country's standards, with specific disclosure requirements for differences.

Securities and Exchange Board of India

CIRCULAR

SEBI/HO/MRD1/DSAP/CIR/P/2020/154

August 21, 2020

All Recognised Stock Exchanges in International Financial Services Centres (IFSC)

Dear Sir / Madam,

Subject: Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015 – Amendments

Kindly refer to SEBI (IFSC) Guidelines, 2015 which were notified by SEBI on March 27, 2015, SEBI Circular dated August 31, 2017 and February 27, 2020.

2. In order to further streamline the operations at IFSC, based on consultations with stakeholders, it has been decided to amend provisions of the aforesaid guidelines, which are as follows:

Clause 19 of SEBI (IFSC) Guidelines, 2015 is being amended to read as follows:

“19. The entities issuing and/or listing their debt securities in IFSC shall prepare their statement of accounts in accordance with IFRS/ US GAAP/ IND AS or accounting standards as applicable to them in their place of incorporation. In case an entity does not prepare its statement of accounts in accordance with IFRS/ US GAAP/ IND AS, a quantitative summary of significant differences between national accounting standards and IFRS shall be prepared by such entity and incorporated in the relevant disclosure documents to be filed with the exchange.

Provided that quantitative summary of significant differences is not required and a statement of differences between local accounting standards and IFRS/ US GAAP/IND AS would suffice, if the issue is targeted to institutional investors, along with a disclaimer that issuer has not quantified the effect of applying IFRS/ US GAAP / IND AS to its financial information and investor may make their own judgment in accessing the financial information”.

3. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. This circular is available on SEBI website at www.sebi.gov.in.

Yours faithfully,

Sanjay Purao
General Manager
Market Regulation Department
Email: sanjayp@sebi.gov.in

FAQ :

SEBI has amended Clause 19 of the SEBI (International Financial Services Centres) Guidelines, 2015, to update requirements for entities issuing and listing debt securities in IFSC.

Entities must prepare their statements of accounts in accordance with IFRS/US GAAP/IND AS or accounting standards applicable in their place of incorporation.

If an entity does not use IFRS/US GAAP/IND AS, they must prepare a quantitative summary of significant differences between their national accounting standards and IFRS for disclosure documents.

Yes, a quantitative summary is not required if the issue is targeted at institutional investors. In such cases, a statement of differences between local and IFRS/US GAAP/IND AS standards, along with a disclaimer, will suffice.

The amendments are intended to further streamline operations at IFSC and protect investors' interests.

Notification No : SEBI/HO/MRD1/DSAP/CIR/P/2020/154
Source : https://www.sebi.gov.in/legal/circulars/aug-2020/securities-and-exchange-board-of-india-international-financial-services-centres-guidelines-2015-amendments_47374.html

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