IFSC Banking Units (IBUs) acting as Trading Member or Professional Clearing Member on stock exchanges/clearing corporations in IFSC
Summary
This circular clarifies that IFSC Banking Units are permitted to act as Trading Members or Professional Clearing Members in the IFSC without forming a separate company. This permission is subject to the conditions specified in the Reserve Bank of India circular dated April 10, 2017. The directive is issued under Section 11(1) of the SEBI Act, 1992, to regulate the securities market and protect investor interests.
Text
an IFSC Banking Unit (IBU) set up in IFSC shall be permitted to act as a Trading Member of an exchange or a Professional Clearing Member of a clearing corporation in IFSC, without forming a separate company, subject to the conditions mentioned in the aforesaid RBI circular.
This circular is being 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.
Source: SecMarx — IFSC Banking Units (IBUs) acting as Trading Member or Professional Clearing Member on stock exchanges/clearing corporations in IFSC. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.