The International Financial Services Centre Authority (IFSCA) has issued the ‘International Financial Services Centre Authority (Informal Guidance) Scheme, 2024’ on December 02, 2024. The Scheme is aimed at providing a mechanism for seeking clarity and guidance inter-alia on various issues pertaining to a potential business activity and transactions, which are under the regulatory ambit of the IFSCA and on other legal issues emanating from the acts administered by IFSCA.
Eligible entities who can seek guidance include persons who are licensed, registered, recognized or authorised by IFSCA, persons intending to undertake a business transaction(s) in relation to financial product(s) or financial service(s) and persons desirous of setting up a Unit in IFSC. The informal guidance can be sought under two forms, namely: No-Action letter and Interpretative letter.
The No-Action letter given by the Department provides comfort to the persons undertaking proposed transaction, as it indicates whether the relevant Department would recommend any enforcement actions to the Authority, under the applicable legal provisions associated with proposed business transactions. The Interpretative letter provide interpretative clarity on the applicable legal and regulatory framework
for making informed and compliant decisions.
The Scheme also provides confidential treatment of 90 days considering the sensitivities of certain transactions, based on the requests made. The Department(s) will provide the guidance within a period of 30 days and the fees charged for the same is USD 1000. The guidance provided under the scheme is not binding on the IFSCA and not amenable for appeal.
