IFSCA Introduces New Dematerialization Guidelines for IFSC Securities

The IFSCA has released a consultation paper detailing a new regulatory framework for the dematerialization of securities within the IFSC jurisdiction. India International Depository IFSC Ltd is tasked with managing ISIN issuance. Entities must migrate dematerialized securities to IFSC depositories by March 31, 2026. Compliance reports are due by April 30, 2026.

The International Financial Services Centres Authority (IFSCA) has unveiled a consultation paper outlining a regulatory framework designed to oversee the dematerialization of securities within IFSC jurisdictions. This initiative aims to ensure that securities issued by entities in the IFSC are managed within the designated depository framework.

India International Depository IFSC Ltd has been appointed as the official issuing agency for International Securities Identification Numbers (ISIN) in GIFT City. Despite this, some entities persist in using domestic depositories for managing these securities, prompting IFSCA to issue new guidelines.

The guidelines mandate that by March 31, 2026, all entities will need to transition their securities to an IFSC-based depository. By April 30, 2026, these entities must confirm compliance through a report submitted to the IFSCA, marking a significant step towards regulatory consolidation within the financial sector.

(With inputs from agencies.)