Notification no. G.S.R 114(E); Dated: 03.02.2026
The Central Government of India has notified the Special Economic Zones Rules, 2026, introducing updated procedural and regulatory provisions governing Special Economic Zones (SEZs), including those relating to International Financial Services Centres (IFSCs).
1. Amendment to Rule 19 – Letter of Approval to a Unit
An amendment has been made to Rule 19, which deals with the “Letter of Approval to a Unit.”
Under the revised provision:
- The Administrator of the IFSC, i.e., the International Financial Services Centres Authority (IFSCA)
- Shall issue a Letter of Approval (LoA)
- In Form GA
- For the setting up of a Unit in an International Financial Services Centre (IFSC)
2. Significance of the Amendment
The amendment:
- Clarifies the authority responsible for issuing Letters of Approval in IFSCs
- Formalises the process through a prescribed Form GA
- Aligns SEZ regulatory provisions with the specialised governance structure of IFSC
This ensures a streamlined approval mechanism within the IFSC framework.
3. Regulatory Objective
The updated rule aims to:
- Enhance clarity in administrative processes
- Ensure uniform documentation standards
- Strengthen regulatory coordination between SEZ framework and IFSC governance
4. Key Takeaway
Under the Special Economic Zones Rules, 2026, the IFSCA, acting as Administrator of the IFSC, is now expressly empowered to issue the Letter of Approval in Form GA for setting up units within the IFSC, reinforcing regulatory clarity and procedural uniformity.
Click Here To Read The Full Notification
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