IFSCA notifies IFSCA (Procedure for making regulations and subsidiary instructions) Regulations, 2025

The International Financial Services Centres Authority ( IFSCA ) has notified the IFSCA (Procedure for Making Regulations and Subsidiary Instructions) Regulations, 2025. The notification, published in the Gazette of India on July 24, 2025.

As the notification came in force, it replaced the earlier 2021 regulations and introduced a comprehensive framework for drafting, amending, and issuing regulations and subsidiary instructions under the IFSCA Act, 2019.

The purpose of the newly enacted regulations is to simplify the process for creating, examining, and revising subsidiary instructions and regulations. They are intended to guarantee that the fundamental focus of all IFSCA rule-making activities is participation of stakeholders, transparency in regulation, and productive implementation.

The regulations clearly define terms such as “regulations,” “subsidiary instructions,” and “public comments.” Subsidiary instructions may take the form of circulars, guidelines, frameworks, or other similar instruments, and are to be approved by the Authority or any delegated official.

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The IFSCA is empowered to frame both regulations and subsidiary instructions to fulfill the objectives of the IFSCA Act. While regulations pertain to broader legislative frameworks, subsidiary instructions can address implementation specifics, compliance requirements, procedural clarifications, and more.

Before finalizing key regulations and subsidiary instructions (especially those defining compliance requirements or interpretive clarifications), the Authority must publish a consultation paper on its website. This paper must include:

• International standards and best practices;
• The problems addressed;
• Regulatory objectives;
• Legislative authority;
• Draft text of the regulation or instruction; and
• Method and timeline for public comments.

After public feedback is collected, a summary of the comments, along with the proposed regulation or instruction, is presented to the Authority. If major deviations from the original draft are necessary, the public consultation process may be repeated.

The approved regulations are notified in the Official Gazette, and the final decision, including justifications for changes made based on public input, is uploaded on the IFSCA website.

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In cases where delay due to public consultation could defeat the purpose of a regulation, especially in the interest of market development or addressing systemic risks, the Authority is empowered to bypass the consultation process.

However, Certain areas are excluded from the scope of these regulations, such as:

• Internal administrative matters of IFSCA;
• Non-substantive procedural changes;
• Joint decisions with other regulators or government bodies;
• Matters involving national security or market integrity;
• Obligations under international agreements.

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