IFSCA, vide ref. No. F. No. 865/IFSCA/Banking/Fee Revision/2022-23 dated March 1, 2024, has issued a Circular on Fee structure for the entities undertaking or intending to undertake permissible activities in IFSC (“Circular”).
Background
Reference is drawn to the IFSCA Fee Circular No.865/IFSCA/Banking/Fee Revision/2022-23 dated May 17, 2023 (“Fee Circular”), as amended from time to time wherein inter-alia Para 14.i of the said Circular, stipulated that:
“all dues/fees payable to the Authority shall be paid by the entities either on receipt of a demand from the Authority, or as per the quantum and periodicity fixed in terms of the relevant regulations, guidelines, circulars, licence, registration, recognition, or authorization, or this Circular and schedules thereto.”
IFSCA has noticed that that though the Fee Circular has been in public domain for over nine months, many Regulated Entities (REs) have failed to adhere to the stipulations of the same and remit fees/dues to the Authority within prescribed timelines which shall attract late payment fees as stipulated in Schedule II of the Fee Circular.
IFSCA has further observed that RE have encountered considerable challenge in the process of transition from the pre-existing fee regimes to the present harmonized one. Therefore, as a one-time measure, it has been decided to keep in abeyance all provisions relating to levying of prescribed late fees as indicated in Schedule II of the Fee Circular till the fourth quarter of the Current FY, i.e., March 31 2024. Accordingly, this Circular has been issued in order to ensure that the provisions as stipulated in the Fee Circular are complied with certain transitory exemptions.
Key highlights of the Circular
1. No late fee will be levied on REs who have failed to pay outstanding dues/fees to the Authority within the specified time or failed to submit periodic returns to the Authority within the specified time between May 17, 2023, and March 31, 2024, subject to the condition that:
a. All fees/dues that have already fallen due or will fall due by March 31, 2024, are remitted to the Authority forthwith/by March 31, 2024.
b. All periodic returns that have already fallen due or will fall due by March 31, 2024, are submitted to the Authority forthwith/by March 31, 2024.
2. From the next FY, i.e., 2024-25, no request for waiver of fees, including late fees for late payment of dues or late submission of regulatory returns will be acceded, unless the RE concerned is able to prove that such non-payment/non-submission was for reasons beyond their control.
3. REs are advised that that if they have any doubts about any provision of any applicable act, rules, regulations, guidelines, circulars, etc., issued by the IFSCA or any other authority w.r.t. its operations in the IFSC, they should seek clarifications from IFSCA/other relevant authority well in advance of falling in default.
a. No request shall be acceded for relaxation of application of any provision of applicable acts, rules, regulations, guidelines, circulars etc., citing lack of clarity or knowledge of any requirement.
Impact on the Company/IIO
The Company/IIO has to ensure the following:
a. Fees for FY 2023-24 to be remitted to the Authority forthwith/by March 31, 2024;
b. Clarifications/Representation on any prescriptions issued by the IFSCA/other regulatory authorities with respect to its operations in the IFSC are made in advance for the avoidance of default, if any
A copy of the notice is attached for your ready reference.
Source category: IRDAI
Attachments
- /2024/363_Amendments-Circular_on_Fee_structure1.pdf
- /2024/363_Fee_structure_for_the_entities.pdf
- /2024/363_Fee_structure_IFSC_as_amended_up_to_July_5,_20231.pdf
- /2024/363_IFSCA_fee_structure_amended_upto_February_6,_2024.pdf
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