IFSCA Grade A flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

CRR

Cash Reserve Ratio: percentage of net demand and time liabilities that banks must maintain as cash with RBI; no interest paid; governed by RBI Act, 1934, Section 42.

SLR

Statutory Liquidity Ratio: minimum percentage of net demand and time liabilities held in cash, gold, or approved securities; governed by Banking Regulation Act, 1949, Section 24.

Basel III CET1

Common Equity Tier 1 capital: core capital including paid-up equity and retained earnings; minimum 4.5% of risk-weighted assets under Basel III.

NPA Substandard

A loan classified as non-performing asset for a period not exceeding 12 months; provisioning requirement generally 15% of outstanding balance.

SARFAESI Notice

Secured creditor must serve 60-day notice to borrower before enforcing security interest under SARFAESI Act, 2002; no court intervention required.

NAV Formula

Net Asset Value per unit = (Total assets minus total liabilities) divided by number of units outstanding; computed daily for open-ended mutual fund schemes.

Mutual Fund Expense Ratio

Total expense ratio includes management fee, trustee fee, custodian fee, registrar fee, audit fee, and marketing expenses; capped by SEBI based on AUM slabs.

AIF Category I

Alternative Investment Fund category covering venture capital, SME, infrastructure, and social impact funds; minimum corpus ₹1 crore; investor minimum ₹1 crore.

PMS Minimum Investment

Portfolio Management Services require minimum investment of ₹50 lakh per client; SEBI registration mandatory under Portfolio Managers Regulations, 2020.

GIFT IFSC GIC

Global In-House Centre in GIFT City IFSC provides support services to group entities; regulated by IFSCA; eligible for tax exemption under Section 80LA.

GIC Net Worth

Minimum net worth for a Global In-House Centre in IFSC varies by activity; finance company requires USD 1 million; support service entity may have lower threshold.

GIC Tax Holiday

GIC in IFSC eligible for 100% tax exemption on profits for 10 consecutive years out of 15 years under Section 80LA of Income Tax Act, subject to conditions.

IPO Public Shareholding

SEBI ICDR requires minimum 25% public shareholding for companies with post-issue capital up to ₹1,600 crore; 10% for larger companies with ₹1,600 crore or more.

ASBA

Application Supported by Blocked Amount: mandatory for public issues; investor's funds remain blocked in bank account until allotment; UPI-based ASBA for retail up to ₹2 lakh.

SAST Open Offer

SEBI Takeover Code: acquisition of 26% or more voting rights triggers mandatory open offer for at least 26% of shares; creeping acquisition limit 5% per year.

Insider Trading UPSI

Unpublished Price Sensitive Information: any information that can materially affect share price; trading on UPSI prohibited under SEBI (Prohibition of Insider Trading) Regulations, 2015.

Insurance Solvency Ratio

Available solvency margin divided by required solvency margin must be at least 150% as per IRDAI (Assets, Liabilities, and Solvency Margin) Regulations, 2016.

ULIP Lock-in

Unit Linked Insurance Plan: minimum lock-in period of 5 years; investment risk borne by policyholder; regulated by IRDAI (Insurance Products) Regulations, 2024.

Obligatory Cession

Reinsurers must cede a specified percentage of business to GIC Re; e.g., 4% for fire and 5% for motor third-party insurance under IRDAI (Reinsurance) Regulations, 2018.

Commodity Derivatives Regulator

SEBI regulates commodity derivatives under SEBI Act, 1992 and SCRA, 1956; Forward Markets Commission merged with SEBI in 2015.

CTT

Commodity Transaction Tax: levied on non-agricultural commodity derivatives at 0.01% on sell side; introduced in Finance Act, 2013.

Commodity Options

SEBI permits options on commodity futures; contract specifications set by recognised exchanges; used for hedging price risk.

BATF Service Provider

Banking, Asset Management, Treasury, and Financial services support provider in IFSC; registered with IFSCA; provides technology, operations, compliance, and risk services.

BATF Net Worth

Minimum net worth for BATF service provider in IFSC is USD 50,000 or as specified by IFSCA; fit-and-proper criteria apply.

BATF Tax Benefit

BATF service provider in IFSC eligible for 100% tax exemption under Section 80LA for 10 consecutive years out of 15; GST exemptions apply.

Cape Town Convention

International treaty on interests in mobile equipment; Aircraft Protocol facilitates aircraft leasing by providing international registry and remedies for creditors; India ratified.

Aircraft Leasing Net Worth

Minimum net worth for aircraft leasing entity in IFSC is USD 1 million; registration with IFSCA mandatory; can lease to Indian and foreign airlines.

IDERA

Irrevocable De-Registration and Export Request Authorisation: remedy under Cape Town Convention allowing lessor to deregister and export aircraft upon default.

FinTech Entity IFSC

FinTech Entity registered with IFSCA under FinTech Regulations, 2021; minimum net worth USD 50,000; can provide technology solutions; cannot undertake regulated activities without license.

Regulatory Sandbox IFSCA

IFSCA framework allows FinTech entities to test innovative products in controlled environment; eligibility criteria, timelines, and safeguards specified.

Ship Leasing Net Worth

Minimum net worth for ship leasing entity in IFSC is USD 1 million; registration with IFSCA mandatory; eligible for tax exemption under Section 80LA.

Bareboat Charter

Ship lease where charterer takes full control of vessel including crewing and operations; lessor provides only the ship; common in ship leasing.