From Fees to Tokenization: Key IFSCA Updates You Should Know

Strengthening the Regulatory Landscape at GIFT IFSC

The International Financial Services Centres Authority (IFSCA) continues to enhance the regulatory landscape at GIFT IFSC, driving global competitiveness and ease of doing business. On February 26, 2025, IFSCA introduced key circulars and consultation papers aimed at providing greater clarity, easing compliance, and fostering innovation.

Key Regulatory Changes

i) Reduction in Interest on Late Payment of Fees
IFSCA has significantly reduced the interest rate on late fee payments from 15% per month to 0.75% per month. This reduction underscores the regulator’s commitment to promoting the overall IFSC ecosystem, easing compliance burdens while maintaining financial discipline​.

ii) Revised Aircraft Leasing Framework
IFSCA has revised its aircraft leasing rules to allow lessors in IFSCs to acquire aircraft from Indian manufacturers, subject to the following conditions:

• The aircraft should not be exclusively used by Indian residents or for domestic services.
• Acquisition is permitted if the manufacturer is not a group entity of the lessor.
• Sale and leaseback transactions are permitted for aircraft being imported into India for the first time.

This change strengthens India’s position as a global aircraft leasing hub.

iii) Mandatory FIU-IND FINGate 2.0 Registration
Regulated entities must register on the FIU-IND portal before commencing business (or within 30 days post-commencement). This step enhances compliance with AML/CFT regulations, reinforcing financial transparency at IFSC.

Consultation Papers

💠 Tokenization of Real-World Assets
IFSCA is exploring a regulatory framework to enable the issuance, trading, and settlement of tokenized assets (commodities, real estate, etc.). This aims to reduce transaction time, enhance liquidity, transparency, and accessibility​.

💠 Securitization by Overseas Insurers/Reinsurers
The consultation paper seeks stakeholder views on the proposed securitization framework for overseas insurers/reinsurers providing insurance coverage to IFSC-regulated entities. It focuses on ensuring financial stability and risk mitigation while promoting a globally competitive insurance and reinsurance market in the IFSC.

Need guidance on IFSC regulations? 

At Treelife, we help businesses navigate the GIFT IFSC and their strategic fit with expert legal, financial, and compliance solutions. Write to us at [email protected]

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Treelife Team | [email protected]

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