New Delhi, The International Financial Services Centres Authority (IFSCA) has issued a consultation paper on regulatory framework for dematerialization of securities by entities in the IFSC jurisdiction.
India International Depository IFSC Ltd is designated as the issuing agency for International Securities Identification Numbers (ISIN) within GIFT City, IFSC.
However, it has been observed that certain entities continue to obtain ISINs and hold securities through depositories located in the domestic jurisdiction, even when such securities are issued by entities established in IFSC jurisdiction, IFSCA said in a statement.
In order to provide sufficient time for transition, it has been decided that the entities in the IFSC that have already dematerialised their securities with the domestic depositories in India shall migrate such securities to a depository in the IFSC by March 31, 2026, it said.
To ensure a smooth transition, a depository in IFSC should ensure a seamless migration from domestic depositories to minimise disruption for issuers and investors.
It should facilitate adequate disclosures regarding the migration process, including account opening requirements and procedural guidance for issuers and investors.
All entities in the IFSC jurisdiction are required to comply with the above directions within the stipulated timeframe, the paper said.
Depositories in IFSC should submit a compliance report to IFSCA by April 30, 2026, confirming the completion of migration by IFSC entities within the prescribed timelines, it added.
IFSCA was established in April 2020 under the International Financial Services Centres Authority Act, 2019. It is headquartered at GIFT City, Gandhinagar.
IFSCA is a unified authority for the development and regulation of financial products, financial services and financial institutions in the International Financial Services Centre (IFSC) in India. At present, GIFT IFSC is the maiden international financial services centre in India.
Prior to the establishment of IFSCA, the domestic financial regulators, namely, RBI, Sebi, PFRDA and IRDAI, regulated the business in IFSC.
The main objective of IFSCA is to develop a strong global connect and focus on the needs of the Indian economy as well as to serve as an international financial platform for the entire region and the global economy as a whole. PTI
