Sebi amends guidelines for International Financial Services Centres
24 Aug 2020
Market regulator Securities and Exchange Board of India (Sebi) has as further amended the Sebi Act, 1992, in order to further streamline the operations at IFSC. Sebi said it has amended provisions of the Clause 19 of SEBI (IFSC) Guidelines, 2015 based on consultations with stakeholders.
Accordingly, entities issuing and/or listing their debt securities in IFSC have to 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”.
Semi said the move is part of its efforts to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.