IFSCA Master Circular for Credit Rating Agencies – Aug 2025
Introduction:
The International Financial Services Centres Authority (IFSCA) has released a comprehensive Master Circular dated August 5, 2025, for Credit Rating Agencies (CRAs) operating in GIFT IFSC.
Summary:
This Master Circular consolidates the regulatory framework governing CRAs under the IFSCA (Capital Market Intermediaries) Regulations, 2025, and supersedes the earlier circular issued in October 2024. Key highlights include:
- SWIT-Based Registration: All applications must be made via the Single Window IT System (SWITS), integrating approvals under SEZ, GST, and other regulators.
- Permitted Activities: CRAs may undertake credit ratings (including private and sovereign), research, valuation, rating assessments, and monitoring services.
- Governance Requirements: Mandatory appointment of Principal Officer and Compliance Officer in IFSC, board composition norms, and code of conduct aligned with IOSCO principles.
- Operational Framework: Guidelines on rating process (solicited and unsolicited), disclosure, rating committee, conflict of interest, and monitoring.
- Additional Requirements: Cybersecurity compliance, KYC/AML obligations, periodic and annual reporting, internal policies for outsourcing, and provisions for registration surrender.
This Master Circular is pivotal for SEBI-registered CRAs entering IFSC and existing IFSC-registered CRAs to realign governance, operations, and disclosures.
🔗 Click here for full notification
Nexpective Advisors is your trusted partner in GIFT IFSC regulatory and advisory services. If this update affects your operations, we’re here to help you stay compliant and proactive.
