Rule 126 restricts a finance company in an International Financial Services Centre, for section 177(7)(b), to lending, factoring and forfaiting or treasury-centre activities, and requires interest on debt it issues to a non-resident to be in foreign currency.
126
Rules 2026 · Rule 126
Conditions and activities for finance company located in any International Financial Services Centre for section 177
Rules 77-130
Permitted activities (sub-rule 1). The finance company carries on only one or more of: lending in the form of loans, commitments and guarantees, credit enhancement, securitisation or financial lease; factoring and forfaiting of receivables; or the functions of a Global or Regional Corporate Treasury Centre — borrowings, lending, hedging of currency or commodity risk, investments, cash management, structured credit, intra-group financing, financial budgeting and similar treasury services.
Interest (sub-rule 2). The interest the finance company pays as borrower on debt issued by a non-resident is in foreign currency.
Definitions (sub-rule 3). "Finance company" is as in regulation 2(1)(e) of the International Financial Services Centres Authority (Finance Company) Regulations, 2021; "International Financial Services Centre" is as in section 2(q) of the Special Economic Zones Act, 2005.