The International Financial Services Centres Authority (IFSCA) on March 01, 2024, issued a notification regarding Fee structure for the entities undertaking or intending to undertake permissible activities in IFSC.
The IFSCA Fee Circular along with its subsequent amendments, clearly outlines the obligations of Regulated Entities (REs) regarding the payment of fees and dues to the Authority. Despite being in the public domain for over nine months, several REs have not complied with the stipulations of the Circular, leading to delays in remitting fees/dues within the prescribed timelines.
It is reiterated that all REs are responsible for staying informed about regulatory changes, including regulations and circulars applicable to them. They are advised to remain updated on all relevant statutes, rules, regulations, guidelines, circulars, etc., and diligently adhere to the provisions laid down therein.
REs are reminded to remit dues to the Authority within stipulated timelines without waiting for formal demands, as failure to do so may attract late payment fees as per Schedule II of the Circular. Additionally, timely submission of periodic reports is essential, as late submissions also incur fees as per Schedule II.
Recognizing the challenges encountered during the transition to the harmonized fee regime, the Authority has decided to temporarily suspend the provisions related to levying prescribed late fees until March 31, 2024, for REs in default. However, this exemption is contingent upon the prompt remittance of all outstanding dues/fees and the submission of periodic returns by March 31, 2024.
From the next financial year (2024-25), the Authority will not entertain requests for waiver of fees or late fees unless the RE can demonstrate that non-payment/non-submission was due to reasons beyond their control.
REs are strongly advised to seek clarifications from the relevant authorities regarding any doubts about applicable regulations well in advance to avoid default. No requests for relaxation of provisions will be entertained, emphasizing the importance of proactive compliance with regulatory requirements.
[Notification No.865/IFSCA/Banking/Fee Revision/2022-23]
