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 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.

Regular and Significant Payment Service Providers must safeguard Payment Service User funds through institutional liability undertakings, guarantees, trust accounts, or other specified methods. Applicable funds must be held in separate escrow accounts with an IBU for each relevant payment service. E-money providers must maintain end-of-day escrow balances sufficient for outstanding e-money and payments due, limit escrow credits and debits to permitted purposes, and must not use e-money funds for lending, extend credit, pay returns, facilitate illegal activities, or permit cash withdrawal from e-wallets.

Minimum net-worth requirements impose phased capital thresholds on Regular and Significant Payment Service Providers. Regular providers must maintain prescribed net worth at commencement and increase it by the end of the third financial year. Significant providers must meet an initial threshold within ninety days of designation and a higher threshold by the end of the third financial year. Net worth includes specified equity, reserves and compulsorily convertible preference shares, subject to exclusions and adjustments for losses, intangible assets and deferred revenue expenditure.

Schedule IV exempts specified persons from authorisation under the International Financial Services Centres Authority (Payment Services) Regulations, 2024. The exemption applies to an IFSC Banking Company or IFSC Banking Unit licensed or permissioned under the Banking Regulation Act, 1949, persons licensed to issue credit cards in an IFSC, and any other person or class of persons specified by the Authority.

Surrender of authorisation by an operational Payment Service Provider requires a Board-approved written request, a Chartered Accountant's certificate of customer balances, escrow details and liabilities, a liability repayment plan, and an undertaking not to incur fresh liabilities. The Authority may require public notices and monthly progress reports. Following extinguishment of customer and merchant liabilities, a statutory auditor's no-liability certificate and the original Certificate of Authorisation must be submitted for cancellation. Providers that have not commenced operations must additionally establish non-commencement and submit their latest audited balance sheet.

Payment Service Providers must establish effective systems and controls to ensure that Relevant Persons meet fit and proper requirements. Assessments must be conducted in the prescribed format at appointment and at reasonably regular intervals. Fit and proper status requires fairness, integrity, financial integrity, good reputation, character and honesty, together with the absence of disqualifications such as specified convictions, pending recovery proceedings, insolvency, financial unsoundness, wilful-defaulter status, regulatory restraints and fugitive-economic-offender status.