IFSCA issues Circular on Implementation of Informal Guidance Scheme, 2024 [Read Circular]
IFSCA introduced the Informal Guidance Scheme, 2024, to aid financial institutions with regulatory clarity
IFSCA – IFSCA issues – IFSCA Circular 2024 – Informal Guidance Scheme – TAXSCAN
IFSCA – IFSCA issues – IFSCA Circular 2024 – Informal Guidance Scheme – TAXSCAN
The International Financial Services Centres Authority ( IFSCA ) has introduced the Informal Guidance Scheme, 2024, aimed at providing clarity on regulatory and legal provisions to financial institutions and other stakeholders operating in International Financial Services Centres ( IFSCs ).
This initiative is designed to address ambiguities in the regulatory framework of IFSC.
The scheme, set to take effect on January 1, 2025, offers a mechanism for obtaining guidance on specific regulatory provisions, proposed transactions, and potential business activities under the jurisdiction of the IFSCA.
Boost Your Earning Potential: Upskill in Tax and Finance, Click here
Eligible applicants include:
- Entities licensed, registered, or recognized by IFSCA.
- Individuals or organizations intending to undertake regulated business activities in IFSCs.
- Persons planning to set up units in IFSCs.
Types of Informal Guidance include both No-Action Letters and Interpretive Letters.
The concerned department may indicate whether it would recommend action to the authority based on the described activity or transaction.
Boost Your Earning Potential: Upskill in Tax and Finance, Click here
The department may provide interpretations of legal provisions, guidelines, or circulars administered by IFSCA, or issued by other regulators (RBI, SEBI, IRDAI, PFRDA) prior to IFSCA’s establishment.
- Applications can be submitted via the Single Window IT System (SWITS) or temporarily through email.
- A fee of USD 1,000, split into guidance and processing components, is required.
- The guidance process is designed for resolution within 30 days, excluding delays caused by the applicant’s responses.
Boost Your Earning Potential: Upskill in Tax and Finance, Click here
Applications that are general, hypothetical, or lack sufficient facts may not be entertained.
Guidance letters are non-binding and do not constitute a formal decision or legal determination by the authority. Confidentiality provisions ensure sensitive business information is protected for 90 days upon issuance of guidance, extendable with redacted details upon request.
To Read the full text of the Circular CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
