Issued by: International Financial Services Centres Authority (IFSCA)
Date of Notification: 21st July, 2025
Power Conferred: Made in exercise of the powers conferred by sub-section (1) of section 28 of the International Financial Services Centres Authority Act, 2019.
Key Provisions:
Short Title and Commencement: These regulations are officially named the International Financial Services Centres Authority (Procedure for making regulations and subsidiary instructions) Regulations, 2025, and come into force on the date of their publication in the Official Gazette.
Definitions: The regulations define key terms such as “Act” (International Financial Services Centres Authority Act, 2019), “Authority” (IFSCA), “public comments” (received in response to public consultation processes), “regulations” (made by the Authority under section 28 of the Act), and “subsidiary instruction” (instrument approved by the Authority or its officer).
Making Regulations and Subsidiary Instructions:
The Authority is empowered to make regulations for carrying out the purposes of the Act.
Subsidiary instructions may be issued to carry out the purposes of the Act or any regulations made thereunder. These instructions can address various aspects, including terms, conditions, requirements, outlining meaning/scope, clarifying provisions, laying down procedures, or addressing effective implementation.
Public Consultation Procedure:
Mandatory Consultation: Public comments are to be sought prior to issuing proposed regulations or subsidiary instructions.
Timeframe for Comments: The Authority must provide a minimum of 21 calendar days for receiving public comments on proposed regulations and subsidiary instructions.
Publication: Proposed regulations or subsidiary instructions are published on the Authority’s website and may be displayed in the Authority’s office. Public comments received are also uploaded to the Authority’s website.
Consideration: The Authority reviews public comments, and the Chairperson may modify the proposal based on these comments.
Amendment and Review:
Amendments: Regulations and subsidiary instructions can be amended, subject to the procedures outlined in the regulations for making them.
Periodic Review: Each regulation made under regulation 3 must be reviewed every five years to assess its objectives, implementation, stakeholder experience, global best practices, and promotion of ease of doing business.
Non-applicability: These regulations generally do not apply to internal organizational matters of the Authority, including the conduct of its meetings, administration, and service conditions of its employees.
Repeal and Savings:
The International Financial Services Centres Authority (Procedure for making Regulations) Regulations, 2021, are repealed by these new regulations.
Any action taken or purported to have been taken under the repealed regulations is deemed to have been taken under the corresponding provisions of these new regulations.
Subsidiary instructions issued prior to the commencement of these regulations are deemed to have been issued under these regulations.
No action taken under the repealed regulations or subsidiary instructions, or non-adherence to the specified procedure for them, will invalidate them.
Regulatory Independence: The Authority aims to coordinate with other government authorities and financial sector regulators in making final decisions related to regulations. It emphasizes that regulatory independence should not be impacted, and efforts are made to avoid unnecessary duplication of regulatory processes or public consultation.
