Mumbai: The Securities and Exchange Board of India (Sebi) revised its guidelines n reporting of statement of accounts for entities listing their debt securities in International Financial Services Centre (IFSC), in an effort to further streamlines the operations.
The country’s only IFSC Gujarat International Finance Tec (GIFT) City is located between Ahmedabad and Gandhinagar in the Gujarat state, and around approximately 225 units/companies are operational with more than 12,000 professionals employed in the city.
In a circular on Friday, the markets regulator said entities listing their debt securities in IFSC will now prepare their statement of accounts in accordance with International Financial Reporting Standards (IFRS) or US GAAP (Generally Accepted Accounting Principles) or Indian accounting standards (IND-AS) or as applicable in the place of their incorporation, and incorporate it in the relevant disclosure documents to be filed with the exchange.
In case, an entity does not prepare its statement of accounts in accordance with IFRS/ US GAAP/ IND AS, it will prepare a quantitative summary of significant differences between national accounting standards and IFRS .
The markets regulator also said that in case the issue is targeted at institutional investors, the 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.
In another circular, Sebi said an entity based in India or in a foreign jurisdiction may provide financial services in IFSC, subject to compliance with the applicable regulatory framework.