The International Financial Services Centres Authority (IFSCA) has issued a circular bearing reference no. IFSCA-LPRA/9/2024, dated April 03, 2025 (“Circular”) with the view of providing directions to all Regulated Entities (“REs”). The key highlights of the Circular are as follows:
- The International Financial Services Centres Authority (IFSCA) observed that certain entities are operating within the International Financial Services Centre (IFSC) without holding a valid registration or authorization from the IFSCA or a Letter of Approval (LoA) under the Special Economic Zones (SEZ) Act, 2005.
- The IFSCA has thereby directed all the REs to maintain a valid Certificate of Registration (CoR), license, or equivalent document as per the applicable IFSCA regulations. The REs shall further ensure that they hold a valid LoA under the SEZ Act, 2005.
- The LoA issued under the SEZ Act, 2005 shall remain valid for one year if the business has not commenced. However, if the business has commenced, the LoA will remain valid for a period of five years.
- In the event of expiry or failure to timely renew the LoA, enforcement actions may be initiated, including the cancellation of the CoR, license, or approval granted under the applicable IFSCA regulations.
- The compliance requirements outlined above shall be applicable to all previously issued CoR, licenses, or approvals. Failure to comply with these requirements may constitute a breach of the terms and conditions of such documents, potentially leading to regulatory sanctions or the cancellation of the documents.
- The Circular shall come into force with immediate effect.
A copy of the Circular is attached for your ready reference.
Source category: IFSC Insurance Office
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