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CS Professional · IFSCA - Regulations, Listing and Compliances · Banking Services and Finance Companies in IFSC

Kaveri Industries group wants one entity in GIFT IFSC to pool surplus cash of its overseas subsidiaries and arrange funding for them. Which finance company activity does this fit?

This is a Global or Regional Corporate Treasury Centre activity, which a registered finance company in an IFSC can perform. It covers pooling cash and arranging funding for group entities, whereas merchant banking, depository services and bullion trading fall under other IFSCA regimes.

  1. AActing as a Global or Regional Corporate Treasury Centre for group entitiesCorrect
  2. BActing as a merchant banker for a public issue
  3. CActing as a depository participant
  4. DRunning a bullion exchange

Explanation

Treasury centre activity covers group-level cash management, funding and related treasury services to group entities. Merchant banking, depository services and bullion exchange operations are separate regulated activities under other IFSCA regulations, not finance company treasury functions.

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