The International Financial Services Centres Authority (IFSCA), a regulatory body under the Government of India, has issued a circular on November 28, 2023, outlining specific time limits for the disposal of various financial service applications submitted to different divisions and departments. The circular aims to enhance efficiency, transparency, and accountability in the regulatory processes governing the International Financial Services Centres (IFSCs) in India.
Circular Details
1. Banking Regulation and Development
a. Licensing of an applicant as IBU (International Banking Unit)
-
- Time Limit: 90 days (From the date of receipt of complete information as specified in the directions)
b. Licensing of an applicant as IBC (International Banking Corporation)
-
- Time Limit: 180 days (From the date of receipt of complete information as specified in the directions)
c. Granting Letter of permission as RO (Representative Office)
-
- Time Limit: 30 days (From the date of receipt of complete information as specified in the directions)
d. Granting Letter of permission as GAO (Global in-house Centres)
-
- Time Limit: 60 days (From the date of receipt of complete information as specified in the directions)
2. Market Infrastructure Institutions
- Broker-Dealer, Clearing Member, Depository Participant, Custodian
- Time Limit: 45 days (From receipt of complete application/information and applicable fee)
3. Primary Markets and Intermediaries
- Investment Adviser, Investment Banker, Credit Rating Agency
- Time Limit: 45 days (From receipt of complete application/information and applicable fee)
4. Division of Debt and Sustainable Finance
- Debenture Trustees
- Time Limit: 45 days (From receipt of complete application/information and applicable fee)
5. Ancillary Services
- Authorization under Ancillary Framework
- Time Limit: 60 days (From the date of receipt of complete application/information and applicable fee)
6. Department of Insurance
- II0, III0
- Time Limit: 45 days (From the date of receipt of complete application/information and applicable fee)
7. Department of Metals and Commodities
- Bullion Trading/Clearing Member (Fresh Registration)
- Bullion Trading/Clearing Member (Cancellation/surrender of Registration)
- Notification of Qualified Jewellers
- Vault Manager
- Time Limit: 60 days (From the date of receipt of complete application/information and applicable fee)
8. Fund I
- Distributors of Capital Market Products & Services
- Angel Fund
- Family Investment Fund
- Time Limit: 45 days (From the date of receipt of complete application/information and applicable fee)
9. Fund II
- Fund Management Equity Funds/Scheme
- Time Limit: 45 days (From the date of receipt of complete application/information and applicable fee)
10. FinTech
- Authorization (A)
- Limited-use Authorization (LUA)
- Time Limit: 60 days (Authorization), 120 days (LUA) (From the date of receipt of complete application/information and applicable fee)
11. Division of Finance Company Regulations
- Finance Company (Core) and ITFS entities
- Finance Company (Non-Core)
- Time Limit: 90 days (Core), 60 days (Non-Core) (From the date of receipt of complete application/information and applicable fee)
Provisions for Queries and Incomplete Information
1. Reminder for Unanswered Queries:
- If no response to a query is received within 15 days, the concerned division must send a reminder.
- If the reminder also remains unanswered for another 15 days, the application is liable to be determined as non-compliant.
2. Incomplete Information:
- If complete information required by IFSCA is not received within 60 days from the date of the first query raised, the file may be put up to the Competent Authority for considering disposal of the application as non-compliant.
- Once the application is disposed of, the entity shall be required to file a fresh application and pay fees afresh.
Conclusion
This circular is a significant step towards streamlining and expediting the approval processes for various financial services within the IFSCs. The outlined time limits provide a clear framework for applicants and ensure that the regulatory authority takes prompt action. Applicants are advised to adhere to the specified timelines and communicate effectively with the relevant divisions to avoid non-compliance and subsequent reapplication processes. The circular is expected to contribute to a more efficient and dynamic financial services ecosystem within the International Financial Services Centres in India.
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INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
(GOVERNMENT OF INDIA)
2nd Floor, Pragya Tower,
GIFT City, Gandhinagar
F. No. 1071/IFSCA/Dev./UBA2024/2023-24
November 28, 2023
OFFICE CIRCULAR
Subject: Time limit for disposal of applications
Time limit for disposal of applications by various divisions/departments are as follows:
|
Si No |
Name of the vertical | Category of application | Time limit for disposal of applications |
| 1 | Banking Regulation and Development |
Licensing of an applicant as IBU | 90 days (From the date of receipt of complete information as specified in the directions) |
| Licensing of an applicant as IBC | 180 days (From the date of receipt of complete information as specified in the directions) | ||
| Granting Letter of permission as RO | 30 days (From the date of receipt of complete information as specified in the directions) | ||
| Granting Letter of permission as GAO | 60 days (From the date of receipt of complete information as specified in the directions) | ||
| 2 | Market Infrastructure Institutions | Broker-Dealer, Clearing Member, Depository Participant, Custodian | 45 days (From receipt of complete application / information and applicable fee) |
| 3 | Primary Markets and Intermediaries | Investment Adviser, Investment Banker Credit Rating Agency | 45 days (From receipt of complete application / information and applicable fee) |
| 4 | Division of Debt and Sustainable Finance |
Debenture Trustees | 45 days (From receipt of complete application / information and applicable fee) |
| 4 | Ancillary Services | Authorisation under Ancillary Framework | 60 days (From the date of receipt of complete application / information and applicable fee) |
| 5 | Department of Insurance | II0 | 45 days (From the date of receipt of complete application / information and applicable fee) |
| III0 | |||
| 6 | Department of Metals and Commodities | Bullion Trading /60 Clearing Member (Fresh Registration) |
days (From the date of receipt of complete application / information and applicable fee) |
| Bullion Trading/ Clearing Member (Cancellation/surrender of Registration) Notification of Qualified Jewellers |
|||
| Vault Manager | |||
| 7 | Fund 1 | Distributors of Capital Market Products & Services | 45 days (From the date of receipt of complete application / information and applicable fee) |
| Angel Fund | 45 days (From the date of receipt of complete application / information and applicable fee) | ||
| Family Investment Fund | 45 days (From the date of receipt of complete application / information and applicable fee) | ||
| 8 | Fund II | Fund Management Equity | 45 days from the date of receipt of complete application / information and applicable fee) |
| Funds/Scheme | 45 days from the date of receipt of complete application / information and applicable fee) | ||
| 9 | FinTech | Authorization (A) | 60 days from the date of receipt of complete application / information and applicable fee) |
| Limited-use Authorization (LUA) | 120 days from the date of receipt of complete application / information and applicable fee) | ||
| 10 | Division of Finance Company Regulations |
Finance Company (Core) and ITFS entities |
90 days from the date of receipt of complete application / information and applicable fee) |
| Finance Company (Non-Core) | 60 days from the date of receipt of complete application / information and applicable fee) |
2. If no response to a query is received within 15 days, the concerned division is required to send a reminder. If the reminder also remains unanswered for another 15 days, the application shall be liable to be determined to be non-compliant. In such a case, the entity shall be required to file a new application and pay the applicable fees again for fresh consideration.
3. If complete information required by IFSCA is not received within 60 days from the date
of first query raised, the file may be put up to the Competent Authority for considering disposal of the application as non-compliant. In this case also, once the application is disposed of, the entity shall be required to file a fresh application and pay fees afresh.
4. are therefore advised to communicate these conditions clearly, at appropriate time to the applicants, while raising query/seeking information from them.
5. This issues with the approval of the Competent Authority.
(I Sreekara Rao)
Secretary to Authority
To
Executive Directors
All HODs
All Division Heads
GM(IT) – for uploading to web portal.
