The International Financial Services Centres Authority (“IFSCA” or “Authority”), in exercise of powers conferred under Section 12 and Section 13 of the International Financial Services Centres Authority Act, 2019, vide Circular No. IFSCA-FCR0FCR/5/2025-Banking/01,[1] dated July 01, 2025, established the requirement for Finance Companies/ Units (“FCs/ FUs”) to seek prior approval or notify the Authority in certain instances when making changes, as detailed below. These provisions aim to ensure that all Regulated Entities (“REs”) adhere to the necessary compliance and regulatory framework (“Circular”). The provisions of this Circular shall come into force immediately, and all FCs/ FUs shall be expected to implement the provisions provided under this Circular, without any delay.
To facilitate a streamlined, uniform, and more efficient approach for FCs/ FUs, the Authority has issued a ‘Guidance Note’. The said Guidance Note elaborates on the step-by-step process that should be followed by these entities when submitting requests for changes that require prior approval or intimation to the Authority. It also specifies the documents that need to be provided in each case. For reference, the Guidance Note has been made available as Annexure 1 to the Circular and can be accessed at the official IFSCA website.
All FCs/ FUs are mandated to strictly adhere to the guidelines outlined in the Guidance Note when submitting any requests or intimation to the Authority. Compliance with these procedures shall ensure consistency and accuracy in the handling of requests and shall streamline the regulatory process for all entities involved.
Requests for prior approval or intimation must be submitted to the appropriate division of the IFSCA. The IFSCA shall be responsible for processing and reviewing such requests in line with the established regulations and ensuring that the interests of both the REs and the broader financial ecosystem are safeguarded.
[1]https://ifsca.gov.in/CommonDirect/GetFileView?id=21626bde60601ef44a0ed022010a1a20&fileName=SOP_Circular_upload_20250701_0722.pdf