Performance Review Committee composition is amended to require at least two independent experts from relevant fields, replacing the earlier provision permitting up to two such experts. The amendment modifies the International Financial Services Centres Authority (Performance Review Committee) Regulations, 2022 and takes effect upon Official Gazette publication.

Setting aside an assessment without an express remand or direction to make a fresh assessment wipes out the original assessment rather than merely reopening it. Appellate power to require fresh adjudication must be exercised through a clear direction authorising reassessment. Where an assessment was set aside on the basis of Form 26AS but no fresh-assessment direction accompanied the order, the assessment stood annulled, and the Assessing Officer had no jurisdiction to issue a fresh assessment order on that issue.

Actions done, taken, or commenced under the repealed procedure, including purported actions, are preserved and treated as undertaken or commenced under corresponding provisions of the revised framework. Subsidiary instructions issued before commencement are deemed to have been issued under the revised framework. Regulations, subsidiary instructions, and actions taken under them cannot be invalidated merely because the prescribed procedure was not followed.

Regulation 12 excludes the prescribed regulatory procedure from internal organisational matters, procedural measures or subsidiary instructions not involving substantive policy changes, coordinated decisions, and specified market integrity or national security interventions. It also covers measures required to meet international agreements or similar arrangements where public consultation serves no meaningful purpose. The Authority must be informed whenever the prescribed procedure is not applied.

Regulations made under regulation 3 must be reviewed every five years or earlier where warranted. Review considers objectives, outcomes, implementation and enforcement experience including related litigation, global best practices, relevance in a changed environment, redundancies, ease of doing business, and other relevant factors. Any amendment warranted by review must follow the Chapter III procedure.

Amendments to existing regulations or subsidiary instructions made under regulation 4(2) are subject to regulations 6 and 9 and require compliance with Chapter III. Every such modification must therefore follow the Chapter III procedure, while the applicability of regulations 6 and 9 remains preserved in relation to those amendments.

Regulation 9 authorises dispensation of public consultation where the Authority considers it expedient in the interest of developing and regulating the financial services market. The power may be used where the time required for consultation would defeat the purpose of proposed regulations or result in undue delay in redressing a problem or market failure.

The Authority may engage stakeholders through additional mechanisms considered appropriate, establish and consult expert or advisory committees for recommendations on drafting or reviewing regulations and subsidiary instructions, and constitute Independent Thematic Review Committees. Independent Thematic Review Committees may conduct focused, independent evaluations of high-priority regulatory themes, including for Regulatory Impact Assessment, on terms considered fit.

Public consultation for proposed subsidiary instructions ordinarily requires a minimum period for public comments. The Chairperson may dispense with consultation or reduce that period by recording reasons in writing, with the decision placed before the Authority for information. Comments must be reviewed, and necessary modifications proposed. The modified proposal and comments must be placed before the Authority or its delegated officer for approval. Before issuance, a summary of comments and a general response must be uploaded on the Authority's website.

Public consultation for proposed regulations ordinarily requires a minimum period of 21 calendar days for comments, subject to the Chairperson's recorded power to reduce or dispense with consultation. Proposed regulations, public comments or their summary, and remarks must be placed before the Authority. Material deviations in approved revised drafts require written reasons. Comment summaries, general responses, substantial changes, and justifications must be published before Gazette notification. Substantive modifications materially differing from the consultation paper may require repeat consultation.

Prior public consultation is required before the Authority makes specified regulations or subsidiary instructions. Public comments must be invited by publishing a consultation paper on the Authority's website. The paper must identify the problem to be addressed, state regulatory intent and objectives, specify the enabling legal provision, include the draft proposed regulations or subsidiary instruction, and state the method, process, and timelines for submitting public comments.

Subsidiary instructions may implement the Act and regulations by prescribing compliance requirements for financial products, services and institutions, explaining or clarifying provisions, setting procedural requirements, and addressing matters necessary for effective implementation. Public consultation must precede instructions prescribing compliance requirements or outlining the meaning, scope or intent of a provision.

Regulation 3 confers regulation-making power on the Authority to formulate regulations for carrying out the purposes of the governing Act. Exercise of that delegated power is expressly conditioned on compliance with procedural requirements established under Regulations 5 and 6, making prescribed procedural compliance a prerequisite to exercising the power within its statutory mandate.

Public comments include consultation responses on proposed regulations, subsidiary instructions, or amendments from persons and entities engaged directly or indirectly in the financial services market. Regulations are instruments made under statutory regulation-making power, while subsidiary instructions are approved by the Authority or an authorised delegate and issued as circulars, guidelines, frameworks or other instruments. Undefined terms carry the meanings assigned under the Act and its statutory modifications or re-enactments.

The regulations may be cited as the International Financial Services Centres Authority (Procedure for Making Regulations and Subsidiary Instructions) Regulations, 2025. They generally enter into force on publication in the Official Gazette, subject to any other commencement provision within the regulations, which prevails over the general publication-based rule.

TechFin and Ancillary Service Providers must comply with applicable regulatory requirements, disclose material changes affecting their registration certificate, and notify the Authority when a promoter's or significant beneficial owner's home jurisdiction is identified as high risk. Providers must maintain adequate manpower and infrastructure in the IFSC proportionate to their operations. Separate registration or authorisation is required under the applicable framework before undertaking regulated activities in the IFSC.

TechFin and Ancillary Service Providers cannot provide non-outsourcable core activities, IFSCA-regulated activities, facility management, transport, logistics, construction or physical-asset management services. Prohibited facility management includes maintenance, security, housekeeping and related outsourced manpower. Services that do not constitute arrangements for carrying on specified financial services under the Act are also excluded, as determined by the Authority.

Permitted TechFin services include cloud computing, cyber security, application development, automation, enterprise software, payment-system technology infrastructure, data-centre operations, regulatory technology, supervisory technology, and solutions supporting trade finance and digital banking. They also cover artificial intelligence, digital identity, financial-crime compliance, distributed ledger technology, internet of things, metaverse technologies, quantum technology, tokenization support, and technology research and development centres. Outsourced services may be included where permitted for a home-jurisdiction regulated entity, with additional services capable of being permitted over time.

Permitted ancillary services include professional, outsourcing, fund-administration, governance, compliance, risk-management and support functions. Governance and compliance support covers internal controls, reporting, sustainability disclosures, board processes, policies, performance evaluation, related-party transaction review and shareholders' rights execution. Trusteeship and facility-agent functions are permitted, excluding separately governed debenture trustee services. Unlisted outsourced services may be undertaken where outsourcing is permitted for a regulated entity in its home jurisdiction, and additional services may be permitted by the Authority.

Existing Ancillary Service Providers and TechFin entities authorised under the earlier frameworks remain governed by them until receipt of a certificate of registration under the current regulations or until twelve months after commencement, unless extended, whichever occurs first. The earlier ancillary-services and TechFin frameworks cease after twenty-four months from commencement. Prior operation, accrued rights, privileges, obligations, liabilities, penalties, investigations, legal proceedings and remedies remain preserved.