Financial statement preparation by incorporated International Financial Service Centre Insurance Offices is determined by business category. Life insurance offices must comply with the accounting principles, standards, disclosures and other requirements in Schedule A. General insurance and reinsurance offices must comply with the corresponding requirements in Schedule B for their financial statements.

Unincorporated International Financial Service Centre Insurance Offices must prepare financial statements under accounting standards applicable to their parent entity. Incorporated offices must follow accounting standards issued by the Institute of Chartered Accountants of India, with cash flow statements prepared only through the Direct Method, segment reporting under Accounting Standard 17 irrespective of listing or turnover conditions, and no application of Accounting Standard 13 on investments. The Authority may require transition to IFRS or another accounting standard.

An accounting year for an unincorporated Insurance Office follows its parent entity's financial year, while an incorporated Insurance Office follows a period ending on 31 March each year. The Policyholders' Fund includes estimated outstanding-claim liabilities, insurance reserves, other liabilities, and other assets on a net basis. Shareholders' Funds comprise share capital, reserves and surplus after specified exclusions and deductions; an unincorporated Insurance Office uses assigned capital instead of share capital.

Regulation 3 sets the objective of the International Financial Services Centres Authority framework for International Financial Service Centre Insurance Offices: establishing a process for the preparation and presentation of their financial statements. The framework concerns the manner in which IIO financial statements are to be prepared and presented, applying specifically to those offices within the International Financial Service Centre.

Applicability of the financial-statement preparation and presentation framework is confined to International Financial Service Centre Insurance Offices registered with the Authority under the International Financial Services Centres Authority (Registration of Insurance Business) Regulations, 2021. Registration under that insurance-business framework is the specified condition for such offices to fall within the regulatory scope.

International Financial Services Centres Authority (Preparation and Presentation of Financial Statements of International Financial Service Centre Insurance Offices) Regulations, 2022 establish the title and commencement framework for financial-statement requirements applicable to International Financial Service Centre insurance offices. Made under the International Financial Services Centres Authority Act, 2019 and the Insurance Act, 1938, they take effect upon Official Gazette publication.

Fit and proper eligibility requires fairness and integrity, including financial integrity, good reputation and character, and honesty. Disqualifications include relevant criminal convictions, pending recovery proceedings, winding-up for malfeasance, undischarged insolvency, unsoundness of mind, financial unsoundness, wilful-defaulter categorisation, and fugitive economic offender status. Regulatory restraints concerning financial products or services, and other regulatory orders, preclude eligibility for prescribed three-year periods.

Eligible jurisdictions for electronic trading platforms include Singapore, India, the United States of America, the United Kingdom, the European Union and the Dubai International Financial Centre. Eligibility depends on holding the prescribed local status, including recognition as a market operator, ETP Operator status, alternative trading system approval, Multilateral Trading Facility authorisation, or Authorised Market Institution status.

Implementation and regulatory facilitation of Electronic Trading Platforms may be supported by the Authority through subsidiary instructions and clarifications. The Authority may prescribe norms, procedures, processes, methods, additional requirements and guidelines, or grant relaxations, for implementing the regulatory framework and facilitating and regulating Electronic Trading Platform activities.

Regulation 27 permits relaxation of strict enforcement of requirements governing electronic trading platforms where it serves development of the financial services market in the International Financial Services Centre. Reasons for relaxation must be recorded in writing. An applicant must submit details and grounds for the requested relaxation and pay a prescribed non-refundable filing fee.

The Authority may issue directions through subsidiary instructions to resolve difficulties in interpreting or applying provisions governing electronic trading platforms. The power facilitates clarification and practical implementation of regulatory requirements.

The Authority may recover from an Electronic Trading Platform Operator expenses incurred in inspecting or investigating its books of account, records, documents, infrastructure, systems or procedures. Recoverable expenses include fees paid to auditors for conducting those inspection or investigation activities.

Authority-appointed audit may be conducted in relation to an Electronic Trading Platform Operator. The Authority may appoint an auditor, in the manner it considers fit, to audit the operator's books of account, records, documents, infrastructure, systems, procedures or affairs.

Directions may be issued without limiting powers under the Act, rules, regulations or subsidiary instructions. They may be issued suo motu, on receiving information, or during the pendency or following completion of an inspection, inquiry or investigation, where necessary in the interests of the public, trade, participants, or Electronic Trading Platform operations.

Inspection, inquiry, investigation and audit powers enable the Authority to examine an Electronic Trading Platform Operator at any time. Managers, directors, chairpersons, officers and employees must cooperate during these processes. After considering a report arising from an inspection, inquiry, investigation or audit, the Authority may take appropriate action.

The Authority may require an Electronic Trading Platform Operator to furnish information, documents or records at any time. The operator must submit the requested material within the time specified by the Authority.

Electronic Trading Platform Operators must maintain confidential, secure, controlled access to all activity-related data and retain it in readily retrievable form for at least eight years. Separate retention periods apply to data sought in Authority investigations and investigations by other agencies under applicable law. Following cancellation or surrender of registration, an operator may be directed to share all platform-activity data with the Authority or another specified agency.

Electronic Trading Platform Operators must appoint a compliance officer responsible for ensuring the operator's compliance with applicable regulatory requirements. The appointment allocates responsibility for regulatory adherence to a designated officer in connection with electronic trading platform activities. The compliance officer is charged with ensuring observance of those applicable requirements by the operator.

Electronic Trading Platform Operators must comply with cyber security and cyber resilience requirements specified by the Authority from time to time. The obligation is continuing and applies under Regulation 17 of the International Financial Services Centres Authority (Electronic Trading Platforms) Regulations, 2026.

Electronic Trading Platform Operators must establish and maintain a business continuity plan and a disaster recovery site. The arrangements must protect data and transaction integrity and ensure continuity of operations.