Direction for all Regulated Entities

[Image omitted. See the official document.]

CIRCULAR

IFSCA-LPRA/9/2024-Legal and Regulatory Affairs

April 03, 2025

To,

All the Regulated Entities in IFSC

Dear Sir/Madam,

Subject: Direction for all Regulated Entities

It has been noticed that certain entities are operating in IFSC without holding a valid license/registration/authorisation certificate from International Financial Services Centres Authority (‘IFSCA’) and Letter of Approval under Special Economic Zones Act, 2005, (‘SEZ Act, 2005’), in contravention of the provisions of the International Financial Services Centres Authority Act, 2019 (‘IFSCA Act, 2019’) and SEZ Act, 2005.

2. In order to ensure orderly development of financial services market in IFSC and to curb such contraventions, it is hereby directed that all regulated entities should, at all times, ensure that they hold valid and subsisting:

• a. Certificate of Registration (CoR)/license/recognition/authorization letter/permission/ approval or any equivalent document, as per the applicable IFSCA regulations or framework; and also
• b. The Letter of Approval (LoA) under the SEZ Act, 2005.

3. It may also be noted that the expiry of the LoA (having validity of 1 year, if business not commenced or 5 years, after commencement of business) or failure to renew it in timely manner, may lead to appropriate enforcement action, including cancellation of the registration/license/recognition/authorization/permission/approval granted under the applicable IFSCA regulations or framework.

4. It is further informed that the conditions set forth in clause 2 shall be deemed to be part of the conditions for grant of all CoR/license/ authorization letter/permission/approval or any equivalent document issued to the regulated entities in the past under the applicable IFSCA regulations/framework. Non-compliance with this Circular may constitute a breach of the terms and conditions of such CoR/license/authorization letter/permission/approval or any equivalent document issued by IFSCA and may lead actions mentioned in clause 3 above.

5. Regulated entities are, therefore, advised to ensure strict compliance with the requirements as outlined in this Circular to avoid any operational disruptions or regulatory sanctions.

6. This Circular is issued in exercise of powers conferred by Section 12 and 13 of the International Financial Services Centres Authority Act, 2019 and shall come into force with immediate effect.

7. A copy of this Circular is available on the website of the International Financial Services Centres Authority at www.ifsca.gov.in

Yours faithfully,

Ankit Bhansali
General Manager
ankit.bhansali@ifsca.gov.in