IFSCA Informal Guidance

The International Financial Services Centre Authority (IFSCA) has issued the ‘International Financial Services Centre Authority (Informal Guidance) Scheme, 2024’ (Scheme) on December 02, 2024. The Scheme aims to provide a mechanism for seeking clarity and guidance inter-alia on various issues pertaining to a potential business activity and transactions, which are under the regulatory ambit of the IFSCA and on other legal issues emanating from the acts administered by IFSCA.

Eligibility

The following persons are eligible to submit a written request (Application) seeking Informal Guidance under the Scheme:

(a) A person licensed, registered, recognised or authorised by the Authority;

(b) A person intending to undertake a business transaction in relation to financial product(s) or financial service(s) regulated by the Authority;

(c) A person desirous of setting up a Unit in IFSC; and

(d) Such other person as may be specified/permitted by the Authority.

Types of Informal Guidance

The informal guidance can be sought under two forms, namely:

• No-Action Letter
• Interpretative Letter

The No-Action letter given by the Department provides comfort to the person(s) undertaking the proposed transaction, as it indicates whether the relevant Department would recommend any enforcement actions to the Authority, under the applicable legal provisions associated with proposed business transactions.

The Interpretative letter provides interpretative clarity on the applicable legal and regulatory framework for making informed and compliant decisions.

Application for Seeking Informal Guidance & Fees

The Application seeking Informal Guidance shall be filed electronically through the Single Window IT System (SWITS) of the Authority.

Provided that the application seeking Informal Guidance shall be filed through an e-mail addressed to the nodal co-ordination cell of the Authority at igdesk[at]ifsca[dot]gov[dot]in, until such filing of application is enabled under the SWITS system.

The Department(s) will provide the guidance within a period of 30 days and the fees charged for the same is USD 1000.

For more details, please see the circular available on the website of IFSCA at www[at]ifsca[dot]gov[dot]in.