On Mar. 7, 2025, IND IFSCA introduced a new fee structure for ITFS operators.
The fees include an INR 1,000 application fee, an INR 10,000 registration fee, and an annual recurring fee based on turnover, ranging from INR 3,000 to INR 15,000.
Turnover refers to the total transaction value on the ITFS platform; an activity-based fee of 20% of registration fee will apply, along with a processing fee of INR 500.
The new fee structure will be effective from Apr. 1, 2025.
On Aug. 30, IND IFSCA proposed trade financing services guidelines.
IND IFSCA proposedGuidelines on setting up of international trade financing services platform (ITFS), to replace 2021 ITFS framework to enhance ease of doing business.
Specify activities allowed, such as factoring, reverse factoring, bill discounting under letters of credit, supply chain financing, pre-shipment credit, and forfaiting.
Eligibility criteria includes incorporation in IFSC, minimum of 3 years of experience, specific net worth requirements, and compliance with fit and proper criteria.
Detailed requirements for applying for authorization, including technical, financial standards; ensure due diligence, AML compliance; competitive bidding for transactions.
Must maintain robust, secure infrastructure with regular audits, data security.
ITFS operators must have board-approved governance policy, e.g. risk management; significant changes in management or ownership will require IFSCA approval.
Mechanism must be in place for resolving disputes among participants on platform.
IFSCA may grant in-principle approval, followed by final authorization upon meeting conditions; authorization can be revoked or surrendered under specified conditions.
ITFS records must be maintained in USD; operators are required to pay specified fees.
IND IFSCA may relax guidelines to support financial market development in IFSC.
Consultation Period
The consultation period ends on Sep. 20, 2024.
Dec. 2024 Revised Guidelines Issued
On Dec. 23, 2024, IND IFSCA issued revisedGuidelines on setting up of international trade financing services platform (ITFS), under IFSCA (finance company) regs 2021.
Eligibility criteria comprise new company incorporation required under Companies act 2013, parent entity must have 3 years' experience in financial markets or fintech, owned funds of >USD 0.2mn, technological infrastructure with real-time capabilities.
Operational framework covers: ITFS to facilitate factoring, reverse factoring, bill discounting, supply chain financing; financiers must have minimum USD 5mn capital/ assets under management; anonymous bidding system for trade financing units.
Real-time dissemination of quotes and information, annual IT/IS audit requirements.
Governance requirements include board-approved corporate governance policy, comprehensive risk management framework, fit and proper criteria for key personnel.
In terms of technology and infrastructure, must maintain high reliability electronic platform, business continuity plan with disaster recovery, online surveillance capability.
Guidelines effective immediately on Dec. 23, 2024.
Dec. 25, 2024 Press Release on Guidelines
On Dec. 25, 2024, IND IFSCA issued a press release providing an overview of the Guidelines on setting up of international trade financing services platform (ITFS).
Detailed background to the guidelines and the Dec. 2024 revisions made per above.
Mar. 2025 New Fee Structure
On Mar. 7, 2025, IND IFSCA introduced a new fee structure for ITFS operators.
The fees include an INR 1,000 application fee, an INR 10,000 registration fee, and an annual recurring fee based on turnover, ranging from INR 3,000 to INR 15,000.
Turnover refers to the total transaction value on the ITFS platform; an activity-based fee of 20% of registration fee will apply, along with a processing fee of INR 500.
The new fee structure will be effective from Apr. 1, 2025.
