IFSCA has uploaded the draft guidelines on capital relief and prudential requirements for factoring transactions for FC/FUs seeking comments/ suggestions from the general public and stakeholders. The proposed guidelines on capital relief are aligned with Basel III framework. It incorporates prudential requirements for Finance Companies engaged in factoring transactions, such as exposure norms and NPA recognition, given that the earlier circular on factoring dated August 17, 2021, which contained these requirements, has now been repealed. Comments and suggestions may be submitted to IFSCA on or before March 31, 2026.
For details: CLICK HERE
