IFSCA Fee Structure for Entities in IFSC and Informal Guidance Scheme Applicants

Overview

• On 2 March 2026, the International Financial Services Centres Authority (IFSCA) issued a circular outlining a detailed fee structure for entities conducting or planning to conduct permissible activities in IFSC Gift City.
• This circular applies to both new applicants seeking licenses, registrations, recognitions, or authorizations, and existing regulated entities and also covers fees payable by persons seeking clarification under the Informal Guidance Scheme 2024.
• It classifies fees into various categories, including application fees, license/registration fees, recurring fees (both flat and conditional based on turnover), activity-based fees, processing fees, interest on late payments, charges for delayed reporting, and fees for informal guidance.
• This fee structure will take effect from FY 2026–27 onward.

Application Fee Structure

• Every application submitted to IFSCA for obtaining a license, registration, recognition, or authorization will be considered a distinct submission.
• Every application will incur its own specific application fee and must be paid to the Authority’s designated bank account.
• This ensures that each regulatory request is processed independently and efficiently.

Fee After Provisional or In-Principle Approval

• Where the Authority communicates a decision to grant provisional approval or in-principle approval, the applicant must pay the applicable licence, registration, recognition or authorisation fee within 15 days from the date of intimation.
• The fee must be paid before the final grant of the license, registration, recognition, or authorization can be made.

Non Refund of Fees Post-Approval

• If the Authority subsequently decides not to grant the licence, registration, recognition or authorisation after issuing provisional or in-principle approval, the fees already paid by the applicant will not be refunded.
• This provision ensures administrative closure and compensates for the resources expended during the evaluation process.

Recurring Conditional Fees for Licensed Entities

• Once an entity has been granted a license, registration, recognition, or authorization, it must pay recurring fees, which may be based on factors like turnover or other relevant criteria.
• These fees will be paid in two installments, following the prescribed framework for such payments.

Penalty for Delayed Regulatory Reporting

• For any regulated entity that fails to submit complete regulatory or supervisory reports or returns within the set deadlines, a penalty of USD 100 will be levied for each instance of delay.
• This charge will apply for each month, or part thereof, the report or return remains unsubmitted.
• This provision encourages adherence to regulatory reporting deadlines and ensures compliance.

Fee for Informal Guidance Applications

• Applicants seeking clarification through the IFSCA Informal Guidance Scheme will be required to pay a fee of USD 1,000 per application.
• If the Authority deems the application ineligible or unmaintainable under the scheme:
• A processing fee of USD 250 (25% of the total fee) will be retained, and
• USD 750 (75% of the fee) will be refunded to the applicant.

Conclusion

• The IFSCA’s fee framework is designed to ensure clarity, fairness, and efficiency in regulating entities operating within the IFSC GIFT City.
• The structure promotes transparency by clearly defining various fees, penalties, and payment schedules, facilitating smooth processing of applications, licenses, and authorizations.
• By emphasizing timely compliance with regulatory reporting requirements and providing a systematic approach to obtaining informal guidance, the framework aims to streamline operations and encourage consistent regulatory practices.
• Ultimately, its objective is to support the growth, governance, and effective functioning of entities in IFSCs, while maintaining a high standard of regulatory oversight.