IFSCA sets up panel to create stressed loan transfer framework
The International Financial Services Centers Authority (IFSCA) set up a committee on Friday to create a framework for the transfer of distressed loans from domestic lenders to IFSC financial institutions.
Former RBI executive director G Padmanabhan would chair the committee which will also include representatives from a law firm and other market players with expertise in banking and legal matters, IFSCA said in a statement.
“The committee was tasked with reviewing the provisions of the RBI instructions relating to the transfer of distressed loans by credit institutions to IFSCA entities, identifying areas / issues in the instructions that require further clarification. the RBI, to suggest both the content of the framework to be put in place by the IFSCA to allow such transfers and modifications to the RBI’s instructions to facilitate the completion of such transfers, ”he said.
The committee would submit its report to the president of IFSCA within one month of the date of its first meeting, he said.
The IFSCA was established as a unified regulatory body to develop and regulate financial products, financial services and financial institutions in International Financial Services Centers (IFSCs) in India. Currently, GIFT IFSC is the only international financial services center in the country.
Prior to the establishment of the IFSCA, the national financial regulators RBI, Sebi, PFRDA and IRDAI regulated the activities of the IFSC.
The main objective of IFSCA is to develop a strong global connection and focus on the needs of the Indian economy, as well as to serve as an international financial platform for the entire region and the global economy. in general.
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