 "IFSCA sets up panel for creating framework for transfer of stressed loan")
The International Financial Services Centres Authority (IFSCA) on Friday sets up a committee for creating a framework for transfer of stressed loans from domestic lenders to financial institutions in IFSC.
Former executive director of RBI G Padmanabhan would be chairing the committee which will also include representative from law firm and other market participants possessing expertise in banking and legal issues, IFSCA said in a statement.
"The committee has been mandated to examine the provisions of the RBI directions pertaining to transfer of stressed loans by lending institutions to entities in IFSCA, identify areas/issues of the directions which require further clarification from RBI, suggest both the contents of the framework to be put in place by IFSCA to enable such transfers and amendments to the RBI directions to make it easier to effect such transfers," it said.
The committee would submit its report to the chairperson, IFSCA, within one month from the date of its first meeting, it said.
IFSCA has been established as a unified regulator to develop and regulate financial products, financial services, and financial institutions in the International Financial Services Centres (IFSCs) in India. Currently, GIFT IFSC is the only international financial services centre in the country.
Prior to the establishment of IFSCA, domestic financial regulators RBI, Sebi, PFRDA and IRDAI regulated business in IFSC.
The main objective of IFSCA is to develop a strong global connect 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 as a whole.