IFSCA Revises Fee Structure for IFSC Entities – Effective FY 2026–27

The International Financial Services Centres Authority has issued a comprehensive circular dated March 02, 2026 revising the fee structure applicable to entities operating or intending to operate in IFSC. The revised framework will be effective from FY 2026–27 onwards and supersedes earlier 2025 circulars.

This notification is not a routine update. It fundamentally restructures how regulatory fees are calculated, paid, adjusted, and monitored across banking, capital markets, insurance, fintech, bullion exchanges, BATF service providers, and Global In-House Centres operating in GIFT IFSC.

This article provides a structured breakdown of the revised fee framework and its practical implications.

Structured Categorisation of Fees

IFSCA has clearly classified fees into multiple categories, bringing uniformity across sectors

Fee structure for the entities:

1. Application Fee
2. Licence / Registration / Recognition / Authorisation Fee
3. Recurring Fee (Flat)
4. Recurring Fee (Conditional – Turnover Based)
5. Activity-Based Fee
6. Processing Fee
7. Interest on Delayed Payment
8. Charges for Delayed Regulatory Reporting
9. Informal Guidance Fee

This categorisation introduces clarity but also increases the need for internal tracking mechanisms within regulated entities.

Recurring Fee Framework – The Dual Structure

One of the most significant changes is the two-component recurring fee structure, applicable across several categories of IFSC entities.

A. Flat Recurring Fee

As per Clause 4 of the circular

Fee structure for the entities:

• Payable annually
• Pro-rata in the year of registration
• For subsequent years, due on April 1 and payable by April 30
• Part of a month treated as a full month

This creates a strict annual compliance cycle aligned with the financial year.

Banking & Finance Companies

Category	Application Fee	Licence / Registration Fee	Recurring Fee	Conditional / Turnover Based	Activity Fee
IFSC Banking Unit (IBU)	$1,000	$25,000	Nil	$50,000 – $2,50,000 (based on turnover slabs)	Nil
Global Administrative Office	$1,000	$25,000	$10,000	Nil	Nil
Representative Office	$1,000	$12,500	$5,000	Nil	Nil
Payment Service Provider (Regular)	$1,000	$25,000 (Authorisation)	$5,000 (per activity)	Nil	Nil
Payment Service Provider (Significant)	$1,000	$25,000	$10,000 (per activity)	Nil	Nil
Payment System Operators	$1,000	$5,000 – $15,000	$5,000 – $15,000	Nil	Nil
Aircraft / Ship Lessors	$1,000	$12,500	$5,000 – $12,500	Nil	Nil
ITFS Operator	$1,000	$10,000	Nil	$3,000 – $15,000 (based on turnover)	Nil
Finance Co – Core Activity	$1,000	$12,500	$12,500	Nil	Nil
Finance Co – Treasury Centre	$1,000	$12,500	$25,000	Nil	Nil

Capital Markets

FMEs & Funds

Category	Application	Registration	Recurring	Conditional / Activity
Authorised FME	$2,500	$5,000	–	–
Registered FME (Non-retail)	$7,500	–	$3,000	–
Registered FME (Retail)	$10,000	–	$3,000	–
Family Investment Fund	–	$15,000	$3,000	–
Venture Capital Scheme	–	–	$1,000 per scheme	$5,000 filing
Restricted Scheme (Cat I / II / III)	–	–	$1,000 per scheme	$5,000 – $15,000
ETF	–	–	–	$15,000
Investment Trust	–	–	–	0.05% of offer size
Portfolio Management	–	–	–	$5,000

Market Infrastructure Institutions

Category	Application	Recognition	Recurring	Conditional
Stock Exchange	$1,000	$25,000	$1,000	$1,500 – $1,50,000+ (turnover slabs)
Clearing Corporation	$1,000	$15,000	$1,000	Nil
Depository	$1,000	$10,000	$5,000	2% of custody charges

Capital Market Intermediaries

Category	Application	Registration	Annual Fee	Turnover Based
Investment Banker	$1,000	$3,500	$3,500	Nil
Investment Advisor	$750	$1,500	$1,500	Nil
Broker Dealer	$500	$1,000	Nil	0.00010% monthly
Global Access Provider	Nil	$10,000	Nil	0.000075% – 0.005%

 Metals & Commodities

Category	Application	Registration	Recurring	Conditional
Bullion Exchange	$1,000	$25,000	$1,000	$1,500 – $1,50,000+
Bullion Trading Member	$500	$1,000	Nil	0.00010% monthly
Vault Manager	$500	$5,000	$5,000	Nil

Insurance

IFSC Insurance Office (IIO)

Fee Type	Amount
Application	$1,000
Registration	$5,000
Annual	$12,500 or 1/20th of 1% of GPW (whichever higher)

Insurance Intermediary Offices (IIIO)

Category	Application	Registration	Annual
Broker	$500	$1,000	$2,200
Corporate Agent	$500	$500	$250
TPA	$500	$500	$250
SLA	$500	$500	$250

Others

Category	Application	Registration	Recurring	Conditional
FinTech (Sandbox)	$100	$1,000	Nil	Nil
International Branch Campus	$1,000	$25,000	$10,000 (from 2nd year)	Nil
KYC Registration Agency	$1,000	$5,000	$5,000	Nil
BATF Service Provider	$1,000	$2,500	$2,500	$2,500 – $10,000 (turnover slabs)
Global In-House Centre	$1,000	$2,500	$2,500	$2,500 – $10,000
TechFin / TAS Provider	$1,000	$2,500	$2,500	$2,500 – $10,000

B. Conditional Recurring Fee (Turnover-Based)

Under Clause 5, the conditional recurring fee:

• Is payable in addition to the flat recurring fee
• Is calculated based on turnover or prescribed slabs
• Must be paid in two instalments:
  • Advance payment
  • Final adjustment after actual turnover is determined

For subsequent years:

• Advance payment based on previous year turnover
• Balance payable by April 30 of the following financial year

This structure introduces a revenue-linked regulatory cost model, aligning regulatory fees with operational scale.

Turnover-Based Slabs Across Key Sectors

The circular introduces detailed slab structures across multiple regulated categories.

IFSC Banking Units (IBUs)

Annual turnover-based slabs now range from:

• USD 50,000 for turnover up to USD 1 billion
• Up to USD 2,50,000 for turnover above USD 20 billion

This represents a progressive fee model based on scale of operations.

Stock Exchanges and Bullion Exchanges

For stock exchanges:

• Slab-based recurring conditional fees apply
• Above USD 150 billion turnover, additional percentage-based levy applies

Similar structure applies to bullion exchanges.

Broker Dealers

Broker dealers are now subject to:

• Monthly turnover-based fee at 0.00010% of turnover

This creates a recurring operational compliance obligation that must be tracked monthly.

Depositories

Depositories must pay:

• 2% of annual custody charges collected from issuers as conditional recurring fee
  Fee structure for the entities …

Fund Management Entities (FMEs)

Under Capital Markets schedule:

• Registered FMEs (Non-retail / Retail) have defined application and recurring fees
• Third-Party Fund Management Service Providers pay USD 2,000 per TPFM contract

ESG schemes and ETFs also have conditional filing fee waivers under specific conditions.

BATF Service Providers & Global In-House Centres

Both categories are subject to:

• Flat annual recurring fee of USD 2,500
• Conditional recurring fee linked to turnover slabs
  • Nil below USD 1 million
  • Up to USD 10,000 for turnover above USD 50 million

This significantly impacts compliance cost modelling for growing service entities in GIFT IFSC.

Insurance Entities – Revised Annual Structure

For IFSC Insurance Offices (IIOs):

• Minimum annual fee: USD 12,500
• Or 1/20th of 1% of Gross Premium Written, whichever is higher

Pro-rata calculations apply in the first year.

Insurance Intermediary Offices (IIIOs) such as brokers, corporate agents, TPAs and SLAs have structured annual fee schedules ranging from USD 250 to USD 2,200.

This formula-based approach increases regulatory exposure for high-volume insurance operations.

Processing Fees and Special Cases

Processing fees apply in specific scenarios

Fee structure for the entities:

• 20% of licence/registration fee for change in management or control
• USD 500 for FME scheme document modification
• USD 2,500 one-time fee for aircraft/ship leasing resource utilisation

Entities undergoing restructuring, M&A, or scheme modifications must account for these additional costs.

Strict Penalties for Delay

The circular introduces clearly defined consequences:

Interest on Delayed Payment

• 0.75% simple interest per month or part thereof

Delay in Regulatory Reporting

• USD 100 per month per delayed report/return

This is particularly critical for entities handling multiple activities where reporting obligations are segmented.

Informal Guidance Fee

• USD 1,000 per application
• 25% retained as processing fee if application not maintainable

Payment Mechanism and Remittance Format

Key compliance requirements include:

• Fees payable primarily in USD
• Indian applicants may remit application and registration fees in INR
• FBIL reference rate applicable for INR conversions
• Detailed remittance format under Schedule II

Entities must:

• Submit documentary evidence of payment
• Provide transaction reference numbers
• File remittance intimation electronically

This adds procedural documentation requirements beyond mere payment.

Supersession of Earlier Circulars

The circular explicitly supersedes multiple 2025 circulars and is issued under Sections 12 and 13 of the IFSCA Act, 2019.

However, liabilities accrued under previous circulars remain unaffected.

Conclusion

The IFSCA Revised Fee Structure for FY 2026–27 introduces:

• A structured multi-category fee framework
• A dual recurring fee model
• Expanded turnover-based slabs
• Clear penalties and reporting charges
• Defined remittance protocols

For FMEs, banking units, broker dealers, insurance offices, BATF service providers, Global In-House Centres, and other regulated entities in GIFT IFSC, this circular is a critical compliance development.

Proactive financial modelling, compliance alignment, and timely remittance will be essential to avoid interest exposure and reporting penalties.

If your organisation operates in GIFT IFSC or is planning to establish an entity under IFSCA regulations, a detailed fee impact analysis should be undertaken immediately for FY 2026–27 onward.