IFSCA Introduces New Dematerialization Guidelines for IFSC Securities

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.