OVERVIEW
- International Financial Services Centre (IFSC) is steadily developing into a sophisticated global financial hub, supported by regulatory measures aimed at strengthening its market infrastructure.
- A significant step in this direction is the required migration of International Securities Identification Numbers (ISIN) relating to IFSC securities from domestic Indian depositories (NSDL and CDSL) to India International Depository IFSC Limited (IIDI), an IFSCA-recognised depository.
- The IFSCA issued a regulatory direction on February 6, 2026, introducing a structured requirement for IFSC Units to obtain International Securities Identification Numbers (ISINs) from a recognised depository located within the IFSC.
- All IFSC Units intending to dematerialise securities or other permitted financial products are required to obtain ISINs from IIDI. Units that have already obtained ISINs from domestic depositories in India are required to obtain new ISINs from IIDI by August 31, 2026.
WHAT IS AN ISIN AND ITS IMPORTANCE?
- An International Securities Identifications Numbers (ISINs) is a globally accepted code that uniquely identifies securities such as equity shares, bonds, debentures, and other permitted financial instruments.
- For international investors, ISINs are not just identifiers. They determine settlement efficiency, custody compatibility, compliance reporting, and ease of cross-border transactions.
- Obtaining ISINs from domestic depositories may create regulatory overlap and operational complexity within the IFSC ecosystem.
- By mandating ISIN issuance through IFSC-recognized depositories, IFSCA ensures that IFSC securities are treated as globally standard instruments rather than extensions of the domestic Indian market.
ONGOING ACCESS TO INTERNATIONAL DEPOSITIORIES
- Issuers may continue to use International Central Securities Depositories for the issuance and listing of debt securities and other permitted financial products, as allowed under the IFSC (Listing) Regulations 2024.
- This clarification ensures that the new ISIN requirement does not restrict global market access or disrupt existing international issuance strategies. Instead, it strengthens regulatory supervision while preserving operational flexibility for global capital markets.
TRANSITION TIMELINE
- IFSCA has provided a defined transition window to allow issuers and market participants adequate time to realign systems and processes.
- As the migration deadline of 31 August 2026 approaches, IFSC Units should review their existing ISINs, engage with depository participants and compile the required documentation at an early stage.
- Timely preparation will reduce the risk of operational delays and support compliance with the revised depository framework.
CONCLUSION
- The IFSCA direction on obtaining ISINs from recognized depositories in IFSC represents a foundational shift in how securities are structured, supervised, and positioned within India’s international financial ecosystem.
- For global investors, it delivers clarity and confidence. For Indian businesses, it enhances access to international capital. For IFSC, it strengthens regulatory independence and global competitiveness.
- As the transition deadline approaches, IFSC units must proactively assess their current ISIN structures and identify whether securities are linked to domestic depositories.
- Non-compliance could expose issuers to regulatory scrutiny and operational disruptions, making early action critical.
HOW SBI-SG CAN HELP?
SBI-SG GIFT IFSC Branch provides end-to-end support for the transition of IFSC securities from NSDL/CDSL to IIDI.
1. Demat Account Opening: Assistance with opening and activating a demat account with SBI-SG as a registered Depository Participant of IIDI.
2. IIDI Onboarding Support: Guidance on documentation, account setup and procedural requirements for onboarding with IIDI.
3. Migration of Existing Holdings: Support for the orderly transition of existing IFSC securities and financial products from domestic depositories to IIDI. 4. Ongoing Depository Services: Continued assistance for holding, administering and managing securities within the GIFT IFSC ecosystem.
Why Choose SBI-SG?
- Registered Depository Participant with IIDI
- Institutional servicing and governance standards
- Integrated support for IFSC securities
- Single-window assistance for demat and transition requirements
Choose SBI-SG GIFT IFSC Branch as your preferred Depository Participant for a smooth and compliant transition to IIDI.
