Every IIO must manage outsourcing risks prudently to prevent adverse systemic effects and protect policyholder interests. Outsourced activities require effective oversight, responsive management practices, adequate due diligence and protection of policyholder data privacy. Before sharing policyholder-related data, an IIO must execute a non-disclosure agreement with the outsourcing agency or include equivalent confidentiality provisions in the service level agreement. Further outsourcing requirements may be specified by the Authority.

Every IIO must maintain a Board-approved policy governing procedures for opening and closing places of business. Prior approval of the Authority is required before opening or closing a location. On closure, the IIO must mitigate associated risks by providing alternative facilities to existing policyholders, maintaining uninterrupted access to insurance services, and ensuring continued servicing of claims.

Every IIO must maintain a Board-approved policy for payment of commissions to insurance agents, intermediaries and insurance intermediaries. The policy must protect policyholders' interests, specify services qualifying for commissions or incentives, prescribe minimum and maximum entitlements, and include cost-efficiency measures. Commission payments must be commensurate with the IIO's policy on expenses of management. The approved policy must be submitted when directed, and additional specified commission-payment requirements must be met.

Every IIO must maintain a Board-approved policy for allocating direct management expenses and apportioning indirect management expenses among insurance segments. The policy must cover applicable expenses, allocation or apportionment bases, acquisition and renewal expenses, and implementation requirements. It must be submitted to the Authority when directed. An unincorporated IIO may adopt its parent entity's Board-approved policy where it meets the required regulatory standards.

Merger, amalgamation, or transfer involving an IIO requires prior approval of the Authority. The proposed merged entity must maintain an available solvency margin not lower than the required solvency margin, while the restructuring scheme must comply with applicable laws and regulations and protect the best interests of policyholders.

Regulation 8 empowers the Authority to issue guidelines concerning the issuance and allocation of capital of IIOs. This authority operates within the regulatory framework for management control, administrative control and market conduct of insurance business in International Financial Services Centres. Capital issuance and allocation requirements may therefore be prescribed through guidelines.

Regulation 7 authorises the Authority to specify hair-cut norms for different types of instruments when computing the Available Solvency Margin. Instrument-specific hair-cut parameters fall within the Authority's regulatory discretion for solvency-margin computation in insurance business.

An IIO must inform the Authority of proposals capable of causing a change in control and of proposed portfolio changes; capital issuances or allotments require prior approval, as do portfolio changes beyond Authority-set limits. Changes must preserve seniority of claims, ranking policyholders ahead of creditors, subordinated debt holders, preference shareholders and equity shareholders. Guarantees affecting that priority are prohibited. Prior approval is required for preference-share dividends or subordinated-debt interest payments where solvency or net-loss conditions apply.

Regulation 5 requires an IIO to endeavour to prevent any entity from exercising direct or indirect control through significant ownership or interest. The requirement also covers portfolio transfers causing a change in the IIO's shareholding pattern, thereby addressing control effected through ownership-related changes.

Unincorporated IIOs are excluded from the Chapter II requirements governing changes in shareholding pattern and management control. Their Parent Entities must immediately notify the Authority of any such changes and ensure that undertakings concerning assigned capital or solvency margin and insurance or re-insurance liabilities remain valid after the change.

Regulation 3 defines benefits, commission, control, capital, expenses of management, confidential information, domestic and foreign entities, regulated entities, and subordinated debt for insurance business in an International Financial Services Centre. Control extends to direct or indirect rights to appoint directors or influence management or policy decisions. Expenses of management include operating and commission-related costs but exclude specified taxes. Confidential information is subject to foreign secrecy requests or agreements and applicable domestic law. Undefined expressions retain meanings assigned under the Act and related legislation.

Management control, administrative control and market conduct of insurance business carried out by IIOs and IIIOs are brought within a regulatory framework applicable in International Financial Services Centres. Its objective is to establish a framework for these operational domains and their regulatory treatment in relation to insurance business undertaken by IIOs and IIIOs.

Legal effect begins on publication in the Official Gazette. Applicability extends to all International Financial Services Centres Insurance Offices and, to the extent specifically provided, International Insurance Intermediary Offices. Application to intermediary offices is confined to provisions that expressly specify that reach.

Escrow service is redefined as a service supplied by a payment service provider under an agreement, through which money is held in an escrow account maintained with an IFSC Banking Unit or an IFSC Banking Company for one or more parties completing a transaction. The definition links the provider's holding of money to the transaction-completion process and confines the escrow account to specified IFSC banking arrangements.

Proper officers must scrutinize GST registration applications and supporting documents for completeness, authenticity and consistency, with particular attention to business-address proof. Risk ratings, prior PAN-linked registrations, cancellations, suspensions, rejected applications and suspicious premises must inform verification. Deficiencies require electronic clarification, while failure or refusal to undergo Aadhaar authentication requires immediate physical verification. Applications must be accepted, rejected or queried within prescribed time limits to prevent deemed approval through officer inaction. High-risk and deemed-approved registrations may require post-registration physical verification and compliance monitoring.

Principals and auctioneers must declare warehouses used to store tea, coffee, rubber and similar auction goods as additional places of business. Books for each place are ordinarily maintained there, but may be kept at the principal place of business where difficulties arise, after written intimation to the jurisdictional proper officer. Input tax credit remains subject to other applicable conditions and applies where the auctioneer claims credit on supplies from the principal and the goods are supplied only through auction.

Faceless Assessment assigns selected Bills of Entry electronically to designated assessment officers, while the Port Assessment Group retains examination, inspection, enforcement-related and other non-assessment functions. Importers file Bills of Entry and supporting documents through ICEGATE and e-Sanchit. The Faceless Assessment Group may accept self-assessment, seek information electronically, order examination or testing, or re-assess the Bill of Entry. A reassessment not accepted by the importer requires a speaking order after an opportunity of hearing. Exceptional cases may be transferred to the port of import, which also handles demands, adjudication, audit objections and finalisation of provisional assessments after testing.

Payment Service Providers must provide clear authorisation and insolvency-risk disclosures to customers and potential customers, ensure regulatory representations and customer materials are accurate and not misleading, and include prescribed information in advertisements and promotions. Before transaction approval, they must disclose beneficiary details, amount, charges, execution time limits, finality and irrevocability, and applicable exchange rates. They must also issue free transaction confirmations containing specified transaction details and dispute-resolution contact information.

Payment Service Providers must safeguard Payment Service User funds through a safeguarding-institution undertaking or guarantee, a trust account, or another specified method. Funds must also be held in separate escrow accounts with an IBU for each relevant payment service. E-money issuers must maintain an end-of-day escrow balance covering outstanding e-money and payments due to users. Escrow transactions are restricted to permitted credits and debits, while e-money cannot be issued at a premium or discount, used for lending, linked to illegal activity, or withdrawn as cash.

Minimum net-worth requirements apply in phases to payment service providers. Regular Payment Service Providers must meet prescribed thresholds at commencement and by the end of the third financial year. Significant Payment Service Providers must meet higher thresholds within ninety days of designation and by the end of the third financial year from designation. Net worth includes specified equity-linked capital and reserves, subject to deductions for losses, intangible assets, and deferred revenue expenditure.