The International Financial Services Centres Authority (IFSCA), on August 10, 2026, issued directions requiring all regulated entities operating in the International Financial Services Centre (IFSC) to maintain a valid and subsisting Letter of Approval (LoA) issued under the Special Economic Zones Act, 2005, along with all applicable regulatory instruments such as registrations, licences, recognitions, authorisations, permissions or approvals. The Authority noted that a valid LoA is a prerequisite for obtaining regulatory approval and carrying on permissible activities in the IFSC.
IFSCA highlighted that an LoA remains valid for one year where business has not commenced and five years where business has commenced, with renewal applications required to be filed at least two months before expiry. The Authority observed that certain regulated entities have continued business operations without holding a valid LoA and/or applicable regulatory instruments, and has directed all entities to ensure that both remain valid at all times and that no business activity is undertaken without them.
The Circular further advises regulated entities to ensure strict compliance, warning that any breach may constitute a violation of the IFSCA Act, 2019, the Special Economic Zones Act, 2005, and the rules or regulations made thereunder, making entities liable to enforcement action, including financial penalties, suspension or cancellation of regulatory instruments. The Circular supersedes the earlier Direction for all Regulated Entities dated April 3, 2025, and takes
