IFSCA Official has introduced the Informal Guidance Scheme, 2024 to address legal and regulatory ambiguities faced by entities engaging in business activities within the International Financial Services Centre (IFSC). This scheme, effective from January 1, 2025, ensures clarity and compliance for smooth decision-making and operations.
Key Features of the Scheme
Purpose The scheme provides a mechanism for individuals and institutions to seek clarity and guidance on regulatory provisions concerning potential business activities under IFSCA’s jurisdiction.
Eligibility Licensed or authorized entities under IFSCA. Individuals intending to transact financial services/products in the IFSC. Persons looking to set up a unit in the IFSC.
Types of Informal Guidance : No-Action Letters: Ensures clarity on whether an action would result in regulatory repercussions. Interpretive Letters: Offers interpretation of regulatory provisions for specific activities or transactions.
Application Process Applications can be filed through the Single Window IT System (SWITS) or via email at igdesk@ifsca.gov.in until SWITS functionality is available. A fee of USD 1,000 applies, covering guidance and processing.
Key Exclusions Requests based on hypothetical scenarios, general inquiries, or matters under court jurisdiction will not be entertained.
Timeline Applications are processed within 30 days, excluding applicant response time for additional queries.
Non-Binding Nature Informal guidance is non-binding and does not constitute a final decision of IFSCA.
Confidentiality Applicants may request a 90-day confidentiality period for sensitive business information.
Relevance for Stakeholders
This scheme is a crucial step in enhancing the ease of doing business within the IFSC. By providing interpretive clarity and regulatory assurance, it simplifies navigation for entities, fostering confidence and compliance in their operations.
Disclaimer: This post is for informational purposes only and does not constitute professional advice. While efforts are made to ensure accuracy, we do not guarantee the completeness or reliability of the information provided. Any reliance is at your own risk. Consult professionals for specific advice.
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