The International Financial Services Centres Authority (IFSCA) introduced a Framework on Stewardship Code on October 23, 2025, aimed at improving investor protection and corporate governance within the IFSC. The circular allows Regulated Entities engaged in investment activities to adopt the annexed Stewardship Code or a code published by various bodies. Significantly, the framework explicitly grants permission for entities to adopt a code specified by a Statutory professional body such as the Institute of Company Secretaries of India (ICSI). This provision gives regulatory recognition to the ICSI Guiding Principles on Stewardship (IGPS), enabling Fund Management Entities and Institutional Investors in the IFSC to formally implement it. The IGPS is designed to be jurisdiction-neutral and sector-agnostic, using a principle-based approach. It is structured into two parts: Part A with ten principles for Institutional Investors and Part B with six principles for Service Providers, each requiring separate and comprehensive reporting formats.
Institute of Company Secretaries of India
Regulatory Recognition to the ICSI Guiding Principles on Stewardship (IGPS)
The Institute of Company Secretaries of India (ICSI) is delighted to share that the International Financial Services Centres Authority (IFSCA) vide circular dated October 23, 2025 has introduced a Framework on Stewardship Code in IFSC to enhance investor protection and promote robust corporate governance. The said IFSCA circular states that Regulated Entities, undertaking investment activities, may adopt the Stewardship Code, as annexed with the circular or may adopt a Stewardship Code specified or published by: –
i. a financial sector regulator in their home jurisdiction; or
ii. a financial sector regulator in India such as the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI), the Pension Fund Regulatory and Development Authority (PFRDA); or
iii. a Statutory professional body such as the Institute of Company Secretaries of India (ICSI).
This is a great recognition to the ICSI Guiding Principles on Stewardship (IGPS) issued by the ICSI, which can now be adopted by Fund Management Entities and Institutional Investors in the IFSC. The ICSI Guiding Principles on Stewardship are available at: https://www.icsi.edu/media/webmodules/ICSIGuidingPrinciplesStewardship41456.pdf
ABOUT IGPS
- Jurisdiction-neutral & sector-agnostic.
- Principle-based approach.
- Divided into two parts. Part A for Institutional Investors, comprising ten principles and Part B for Service Providers, comprising six principles.
- Unique, comprehensive and separate reporting format for Institutional Investors and Service Providers.
