On June 24, 2025 (Policy/11/2025‑CL‑V‑MC), several measures were introduced to streamline IFSC company incorporation: The Central Registration Centre will no longer object to industrial codes 65–67. Subsidiaries may include “IFSC” in their name with a parent company NOC. Form SPICe+ Part B no longer requires the holding company’s CIN—nominee-shareholder details suffice. The window to furnish registered office details is extended from 30 to 60 days under Section 462, and Form INC‑22 must be submitted within 180 days via STP. Early-stage compliance now accepts a provisional allotment letter and co-developer NOC, with the office photo still to follow. A PIN-code entry issue in Form INC‑22 has been addressed. CLICK HERE
At the June 24, 2025 24th Authority Meeting, the IFSCA approved four major initiatives: a Transition Bonds Framework enabling ESG-linked bond issuance by hard‑to‑abate sectors; the Third‑Party Fund Management “Platform Play,” permitting FMEs to manage restricted schemes for external managers without IFSC presence, subject to USD 500k net worth and USD 50M caps; the TechFin & Ancillary Services Regulations, 2025, establishing a SWIT-based unified framework with a 24‑month transition; and streamlined regulation-making procedures to strengthen public consultation. Additionally, IFSCA joined the International Organization of Pension Supervisors as a governing member. CLICK HERE
On June 23, 2025, IFSCA issued IFSCA‑FMPP0BR/1/2021‑Banking‑Pt (1)/3, requiring IBUs to obtain declarations from resident account holders confirming FCA usage aligns with initially declared LRS purposes.
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Replacing Paragraph 3(ii): IBUs must now obtain a declaration from the resident individual (RI) confirming that any amount spent from their FCA for availing financial services or products in an International Financial Services Centre aligns with the purpose declared during the initial remittance under LRS or is for a purpose permitted under LRS.
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Replacing Paragraph 4(ii): IBUs are required to secure a declaration from the RI affirming that any amount remitted from their FCA corresponds to the purpose declared at the time of remittance under LRS or is for a purpose permitted under LRS.
Vide Circular IFSCA/CMD/DMIIT/KRA/2025-26/1 dated June 13, 2025 the following fee structure for registration as KYC Registration Agency (KRA) was specified. CLICK HERE
Vide Circular F. No. IFSCA/24/2024-Banking-FC/02 dated June 9, 2025, IFSCA has amended the GRCTC Framework by inserting a proviso in clause 3 (2) (ii) empowering the Chairperson to grant, upon request, a temporary waiver of up to one year from commencement operations, from the requirement to deploy a minimum of five qualified personnel (including a Head of Treasury and Compliance Officer), subject to an assessment of the proposed permissible activities and anticipated business volume. CLICK HERE
The International Financial Services Centres Authority (IFSCA), through Circular F. No. IFSCA/24/2024-Banking-FC/01 dated April 4, 2025 (updated June 9, 2025), has issued a revised Framework for Finance Companies/Units undertaking Global/Regional Corporate Treasury Centre (GRCTC) activities, replacing the earlier framework from June 25, 2021. The updated Framework aims to promote ease of doing business and align with global standards. It applies to both new applicants and existing GRCTCs, requiring registration via the Single Window IT System (SWIT), commitment to infrastructure in IFSC, and employment of at least five qualified personnel, including a Head of Treasury and Compliance Officer (with possible one-year relaxation). Applicants must maintain a minimum owned fund of USD 0.2 million (which may be held at the parent level for branches), meet ‘fit and proper’ criteria, and not be linked to FATF high-risk jurisdictions. Registration may be provisional but operations can begin only after receiving the Certificate of Registration and a valid Letter of Approval under the SEZ Act, 2005. GRCTCs can serve Group Entities of the Parent, both in India and abroad, across a broad range of treasury activities, such as capital raising, lending, derivatives, FX, liquidity management, re-invoicing, and advisory services. They must start operations within six months (extendable by three), adhere to AML/CFT/KYC norms, and conduct transactions in specified foreign currencies (with limited SNRR account use). Governance must include board-approved policies and prior approval is needed for control changes of 20% or more. Fees include a one-time application fee of USD 1,000, registration fee of USD 12,500, and an annual fee of USD 25,000. GRCTCs registered for Factoring activities under relevant regulations are exempt from separate fees for such services. Existing GRCTCs must align with the new requirements and fee structure within six months from the circular’s date. CLICK HERE
Vide Circular E. File. No. IFSCA-FMPP0BR/3/2023-Banking dated June 6, 2025, the International Financial Services Centres Authority (IFSCA) issued policy guidelines for Payment Service Providers (PSPs) in IFSC regarding participation in international payment systems. Exercising powers under the Payment and Settlement Systems Act, 2007 and the IFSCA Act, 2019, the Circular mandates that PSPs must obtain prior approval from the Authority before participating in international payment systems for transactions involving banks or financial institutions outside the IFSC. If the system facilitates payments between PSPs or financial institutions within the IFSC, it requires prior authorization from the Authority under Section 7(1) of the PSS Act. PSPs must ensure the international payment system complies with these requirements and seek approval accordingly. Additionally, all PSPs must review their participation in such systems and inform the Department of Banking Supervision of their compliance within 30 days of the circular, along with submitting a list of international payment systems they were part of as of May 31, 2025. CLICK HERE
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Modifications under the International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022
The International Financial Services Centres Authority (IFSCA), via Circular No. F. No. IFSCA-DAC/7/2024-AMLCFT/01 dated June 5, 2025, has amended the 2022 AML/CFT/KYC Guidelines in line with Gazette Notification G.S.R. 419(E) dated July 19, 2024. Key changes include the removal of ‘city council tax receipts’ as acceptable proof of address and clarification that, under simplified KYC, if documents other than bank or post office statements are submitted as address proof, updated Officially Valid Documents (OVDs) with the current address must be provided within three months. Bank and post office account statements are deemed OVDs only for simplified measures. Regulated Entities (REs) must now retrieve customer KYC records from the CKYCR using the KYC Identifier, generally without re-collecting documents unless there are changes, incomplete or invalid records, or risk-based requirements. Any new or updated customer information must be submitted to CKYCR within seven days, prompting all REs that have interacted with the customer to update their records. This applies to specific entities such as Payment Service Providers, IFSC Banking Units, Broker Dealers, Fund Managers, and Insurers. Additionally, while KYC record submission for foreign nationals to CKYCR is not mandatory, if done, address proof may include documents from foreign governments or embassies, supported by valid identity documents like a passport, driving license, or voter ID. All other provisions of the original guidelines remain unchanged. CLICK HERE
Vide Circular No. IFSCA-DMC/3/2023-Dept. of Metals and Commodities dated June 2, 2025, the IFSCA has amended ITC (HS) codes for gold and silver imports through the India International Bullion Exchange (IIBX), following DGFT Notification No. 08/2025-26 dated May 19, 2025, which revised codes under Chapter 71 as per the Finance Act, 2025. Key changes include: deletion and substitution of specific ITC (HS) codes in previous circulars to align with the updated coding structure. Qualified Jewellers may now import gold under ITC (HS) code 71081210 and silver grains under 71069120. Additionally, all entities, including Qualified Jewellers, may import silver bars under code 71069221, subject to RBI regulations. Circular dated December 13, 2023, regarding import of UAEGD gold, now replaces code 71081200 with 71081210. The April 19, 2024, Circular permits Scheduled Commercial Category (SCC) Banks to import gold (99.5% purity) under 71081210 and silver (99.9% purity) under codes 71069120 (grains) and 71069221 (bars). These changes take effect immediately, with all other provisions of the earlier circulars remaining unchanged. The Circular is issued under Sections 12 and 13 of the IFSCA Act, 2019. CLICK HERE