The International Financial Services Centres Authority has notified that the Authority does not mandate any Minimum Holding Period (MHP) requirement with respect to sale or transfer of loan assets (by any means) by/to IFSCA banking unit (IBU).
IBUs undertaking such transactions are directed to undertake necessary due diligence and if necessary, insert required provisions in the agreement to protect its interest such as for retention of a part of the asset or portfolio by the seller and/or minimum period of retention of the asset or portfolio by the seller prior to transfer (i.e., MHP). The IBUs may also put in place a policy for determining the MHP requirement for such transactions.
