CAM GIFT City IFSC Updates

Analysis of comments received on the proposed IFSCA (Investment by IFSC Insurance Office) (Amendment) Regulations, 2024

International Financial Services Centres Authority (“IFSCA’) had released consultation paper for proposed amendments to IFSC (Investment by IFSC Insurance Office) Regulations, 2022 (“Regulations”).

On October 08, 2024, the IFSCA released analysis of the comments from the stakeholders that IFSCA received on the proposed amendment to the Regulations along with its rationale. Some of these comments include – modification of note 1 and 3 to the Matrix 1 to exclude the applicability of the same to Unit Linked Insurance Products (“ULIP”) as a separate clause 9A has been created for ULIP products and the applicability of the said matrix is only on non-linked investment assets; suggested addition for 12 months’ time period for the compliance with the Regulations in case of sovereign rating downgrade, as the transfer of investment asset to another country requires additional operational time; and more.

The circular is available here

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Circular on format for providing information by Payment Service Provider

On October 08, 2024, the International Financial Services Centres Authority (“IFSCA’) vide circular (“Circular”) has specified various formats for Payment Service Provider (“PSP”) along with the periodicity for its submission to IFSCA and the manner of submission. Additionally, the said Circular also provides for surrender of authorisation granted under the IFSC (Payment Services) Regulations, 2024 in case of non-compliances including failure to submit the returns within prescribed time period and/or providing incorrect information in the returns.

The Circular provides the requirements of submission of auditor’s certificate of PSP’s net worth and certificate of maintenance of balance in escrow accounts; PSP’s declaration of net worth; and various returns by PSP.

The circular is available here

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