The Central Government has notified the Special Economic Zones Rules, 2026, introducing a key procedural change for units being set up in International Financial Services Centres (IFSCs). The amendment empowers the Administrator of the International Financial Services Centres Authority (IFSCA) to issue a dedicated Letter of Approval in a newly prescribed Form GA.
The notification was issued by the Ministry of Commerce and Industry under Section 55 of the Special Economic Zones Act, 2005 and published in the Official Gazette on 3rd February 2026.
What Has Changed?
The amendment inserts sub-rule (1A) in Rule 19 of the Special Economic Zones Rules, 2006.
Under the new provision:
The Administrator (IFSCA) shall issue a Letter of Approval (LoA) in Form GA for setting up a unit in an International Financial Services Centre.
Previously, approval mechanisms for SEZ units were governed under existing formats. The introduction of a specific Form GA standardises the approval process for IFSC-based units.
Applicability: Focus on GIFT IFSC
The new Form GA specifically applies to units being established in the Gujarat International Finance Tec-City (GIFT City) IFSC, which operates as a multi-services Special Economic Zone.
The approval will be issued by the Administrator (IFSCA) for units setting up operations in:
- Gujarat International Finance Tec-City (GIFT City)
- The IFSC within the GIFT Multi-Services SEZ
Key Conditions Under Form GA
The newly inserted Form GA prescribes detailed conditions for IFSC units, including:
1. Validity Period
- The Letter of Approval (LoA) will initially be valid for one year from the date of issue.
- Units must commence services within this period (or extended period, if granted).
- Once operations begin, the LoA remains valid for five years.
2. Export Obligation
Units must undertake export of financial services for a period of five years from the commencement of authorised operations, in line with the SEZ framework.
3. Regulatory Compliance
The approval is subject to:
- Compliance with the SEZ Act and SEZ Rules
- Obtaining all mandatory approvals from IFSCA and other regulatory authorities
- Execution of Bond-cum-Legal Undertaking as required
4. Domestic Tariff Area (DTA) Provisions
Units may:
- Import or procure goods from the Domestic Tariff Area (DTA), except prohibited items under ITC (HS) classification
- Supply services to DTA as per prescribed norms
5. Pollution Control & Statutory Compliance
Units must meet pollution control norms and all applicable statutory requirements.
Impact on IFSC Ecosystem
The formalisation of Form GA reflects the government’s continued efforts to streamline regulatory processes within IFSCs and strengthen India’s position as a global financial services hub.
By clearly assigning approval powers to the IFSCA Administrator, the amendment enhances administrative clarity and reduces procedural ambiguity for financial services entities seeking to establish operations in GIFT City.
Legal Background
The Special Economic Zones Rules, 2006 were originally notified in February 2006 and were last amended in June 2025. The 2026 amendment now introduces a specific approval framework tailored to IFSC units.
The new rules came into force from the date of publication in the Official Gazette.
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