On Aug. 20, IND IFSCA proposed scheme regarding informal guidance.
IND IFSCA issuedConsultation paper on the International Financial Services Centres Authority (informal guidance) scheme, 2024 re aiding FIs in informed decision-making.
Overview of Proposal
Issued under the powers of the International Financial Services Centres Authority act, 2019 (also referred to as the IFSCA act, 2019), aimed at the orderly development of the financial services market in the International Financial Services Centre (IFSC).
Includes any person or entity regulated, recognized, or planning to engage in business within IFSC; requests for guidance can be in form of no-action, interpretive letters.
Requests for guidance must specify the type of letter sought, be accompanied by a fee, and thoroughly describe the relevant business scenario as well as legal concerns.
The scheme emphasizes clarity in requests, stipulates conditions under which guidance may not be offered, and ensures confidentiality up to 90 days post-response.
Consultation End
The comment period for this consultation is open until Sep. 10, 2024.
Dec. 2024 Scheme Finalized
On Dec. 2, 2024, IND IFSCA issued circular containing finalized International Financial Services Centres Authority (informal guidance) scheme 2024, in force Jan. 1, 2025.
Circular comes into force on Jan. 1, 2025 as well; IND IFSCA also explained that the scheme is aimed at providing mechanism for seeking clarity and guidance, inter-alia, on various issues with respect to potential business activity as well as transactions.
Regulators
IND IFSCA
Entity Types
B/D; Corp; IA
Reference
Cir F. No. IFSCA-LPRA/11/2024-Legal and Regulatory Affairs, PR 12/2/2024; CP 8/20/2024
