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    Question

      Which of the following is true with respect to issue

    of debt securities by an issuer in IFSC?                       I.        The issuer is eligible to issue debt securities as per its constitution                     II.        The  issuer  or  its  directors  should  not  be  convicted  of  any  economic  offence                    III.        The minimum subscription amount in case of private placement  per  investor  shall  not  be  less  than US Dollar hundred             IV.   It is mandatory for an issuer desirous of issuing debt securities to list such debt securities in one or more stock exchanges set up in IFSC
    A I and II Correct Answer Incorrect Answer
    B I,II and III Correct Answer Incorrect Answer
    C I,II and IV Correct Answer Incorrect Answer
    D II,III and IV Correct Answer Incorrect Answer
    E I, II, III and IV Correct Answer Incorrect Answer

    Solution

    SEBI (International Financial Services Centres) Guidelines, 2015 Issue of Debt Securities ·         Eligible Issuers ü  The issuer is eligible to issue debt securities as per its constitution ; ü  The  issuer  should  not  have  been  debarred  by  any  regulatory  authority   in  its  home  jurisdiction or any other jurisdiction, where it is operating or has raised any capital; ü  The  issuer  or  its  directors  should  not  be  convicted  of  any  economic  offence   in  its  home  jurisdiction or any other jurisdiction where it is operating or has raised any capital; ü  Any other criteria as may be specified by the Board. ·         The minimum subscription amount in case of private placement   per  investor  shall  not  be  less  than US Dollar hundred thousand or equivalent or such amount as may be specified by Board from time to time ·         It is mandatory for an issuer desirous of issuing debt securities to list such debt securities in one or more stock exchanges set up in IFSC. ·         Advertisement for debt issues within IFSC may be made in any print media ·         For debt issues within IFSC, the credit rating may be obtained either ü  from a recognized credit rating agency registered with the Board or  ü  from any other credit rating agency registered in a foreign jurisdiction ·         Agreement with Depository or custodian - An  issuer  of  debt  securities  shall  enter  into  an  agreement  with  a  depository  or  custodian  eligible  to  operate  in  IFSC  ü  for  issue  of  the  debt  securities,  ü  for  the  purpose  of  holding  and  safekeeping of such securities and also ü  to facilitate transfer, redemption and other corporate actions in respect of such debt securities. International Financial Services Centres Authority (Global In-House Centres) Regulations, 2020

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