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Corporate Laws Central Ministry of Finance Banking (Regulation) Act, 1949

Application of provisions of the Banking Regulation Act, 1949 to International Financial Services Centre

28-Feb-2024 | S.O. 942(E)

Ministry of finance has issued a notification applying the provisions of the Banking Regulation Act, 1949 to International Financial Services Centre.

By virtue of this notification:-

1. The limits mentioned in Section 19(2) with respect to holding shares in any company shall not apply to an International Financial Services Centres Banking Unit of a Foreign Bank-
(a) for a transaction entered in the ordinary course of business in respect of a company where the shareholding is held by way of security, whether as a pledge, mortgage or by any other similar mode; or
(b) if the shareholding or interest acquired or held in the course of satisfaction of debts due to it, is disposed of at the earliest but not later than five years:

Provided that the period of five years referred above may be extended by the International Financial Services Centres Authority, for reasons to be recorded in writing.

2. The restrictions mentioned in Section 20 (1) with respect to loans and advances shall not apply to loans and advances made by an International Financial Services Centres Banking Unit of a Foreign Bank.

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