# From Fees to Tokenization: Key IFSCA Updates You Should Know

Published: 28 Feb 2025
Author: Treelife
Practice area: News
Source: https://treelife.in/news/from-fees-to-tokenization-key-ifsca-updates/

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Blog Content Overview

- [1 Strengthening the Regulatory Landscape at GIFT IFSC](#Strengthening_the_Regulatory_Landscape_at_GIFT_IFSC)
- [2 Key Regulatory Changes](#Key_Regulatory_Changes)
- [3 Consultation Papers](#Consultation_Papers)

## **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 [gift@treelife.in](mailto:gift@treelife.in) 

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