Life insurance IIOs must maintain separate funds for participating and non-participating policyholders and adopt a Board-approved policy governing surplus distribution. Relevant surplus-distribution provisions must be disclosed to policyholders and reflected in the IIO's books of account. The approved policy must be furnished to the Authority whenever directed.

Confidential information concerning regulated entities may be disclosed only upon a written request made for the lawful performance of the requesting authority's duties. The IFSCA must appoint a Custodian of Information, protect information received from other authorities, obtain the supplying authority's consent before further disclosure under an enforceable request, and resist disclosure where consent is withheld. Requests are assessed individually for shareability, confidentiality, proprietary character, commercial harm, competitive misuse, confidentiality safeguards and reciprocity, subject to overriding multilateral supervisory obligations.

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.

Control includes direct or indirect rights to appoint a majority of directors or determine management or policy decisions through shareholding, management rights, shareholder or voting agreements, or other means. Benefits include direct or indirect incentives and payments, while commission covers benefits paid for insurance solicitation, procurement, retention or conversion services. Expenses of management include operating expenses, commissions and intermediary remuneration, but exclude taxes borne by the IIO. Confidential information, regulated entities and information requests are defined for insurance and re-insurance business in an International Financial Services Centre.

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.

Regulation 1 brings the International Financial Services Centres Authority (Management Control, Administrative Control and Market Conduct of Insurance Business) Regulations, 2023 into force upon publication in the Official Gazette. The applicability provision covers all International Financial Services Centres Insurance Offices and applies to International Insurance Intermediary Offices to the specified extent, identifying both categories as regulated entities within International Financial Services Centres.

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 electronically assigns selected bills of entry to designated assessing officers for verification through ICEGATE and e-Sanchit. Officers may accept self-assessment, seek information, reassess, or order examination and testing. Port Assessment Groups retain non-assigned and referred cases, examination, inspection, enforcement-related action, provisional-assessment finalisation, demand proceedings, and specified post-assessment functions. Turant Suvidha Kendras accept bonds and bank guarantees and undertake supporting verification and document functions. Reassessment differing from self-assessment requires a speaking order and an opportunity of hearing unless electronically accepted.

Payment Service Providers must give customers and potential customers a prescribed statement that authorisation does not assure recovery of all funds if the provider's business fails. The statement must appear in publicly available material, be given before use of the service, and be supplied in writing to customers who did not receive it earlier. Before transaction approval, providers must supply details of the beneficiary, amount, fees, execution time limits, finality, irrevocability, and applicable exchange rate.