Transforming Financial Services in IFSC

Compliance Alert for IFSC Regulated Entities

• Attention IFSC regulated entities! Some entities are operating without valid IFSCA licenses and SEZ Act, 2005 approvals, violating regulatory requirements. Ensure compliance to avoid penalties and disruptions.
• These operations violate the IFSCA Act, 2019, and SEZ Act, 2005. To uphold market integrity, all entities must ensure full regulatory compliance.
• Non-compliance may lead to penalties, disruptions, or license cancellation. Entities must act immediately to avoid enforcement actions.

No Certification, No Operation

• All regulated entities in IFSC must hold a valid IFSCA certification, which includes registration, license, approval, or recognition, along with a Letter of Approval (LOA) under the SEZ Act—both of which are mandatory for operations.
• Failure to comply with these requirements may lead to license cancellation, regulatory penalties, and business disruptions, impacting operational continuity.

LOA Renewal Rules & Consequences of Non-Compliance

• The Letter of Approval (LOA) is valid for 1 year if the business has not commenced and 5 years after business commencement.
• Timely renewal is crucial, as failure to renew on time may result in enforcement actions, including license cancellation and penalties.
• Non-compliance with IFSCA and SEZ guidelines can have serious consequences, including license or registration cancellation, business suspension in IFSC, and legal or regulatory action.

conclusion

• Regulated entities in IFSC must immediately verify and update their registrations, licenses, and Letter of Approval (LOA) to ensure uninterrupted operations.
• Failure to comply may result in strict enforcement actions, including license cancellation and regulatory penalties.