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Consultation Paper for issuing Circular on Integration of Regulated Entities with
KYC Registration Agencies in IFSC
A. Objective of the Consultation paper
The objective of this consultation paper is to seek comments from the public and the
stakeholders on integration of Regulated Entities in IFSC with KYC Registration
Agencies (KRAs) registered with the International Financial Services Centres
Authority (IFSCA).
B. Draft Circular and Proposal for Public Comments
1. The draft circular on “Integration of Regulated Entities with KYC Registration
Agencies in IFSC” is placed as Annexure- 1, inviting comments and suggestions
from the public and stakeholders.
2. Comments on the draft circular may be sent by email to Mr. Rishikesh Wandhekar,
AM, IFSCA at rishikesh.wandhekar@ifsca.gov.in with a copy to Mr. Pawan Kumar
Chowdhary, DGM, IFSCA at pawan.kc@ifsca.gov.in and Mr. Arjun Prasad, CGM,
IFSCA at arjun.pd@ifsca.gov.in latest by July 16, 2026.
1. The comments may be provided in the following format (MS Word or MS Excel only):
Name and Details of the Person / Entity
[Organization name (if applicable), Contact No., Email address]
Paragraph No. Comments/Suggestions Detailed rationale along
Sr. No of the Draft along with revised Clause in with supporting
Circular line with the suggestion information
Issued on June 26, 2026
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DRAFT CIRCULAR
e.F.No. XXXX June XX, 2026
To,
All Regulated Entities operating in the International Financial Services Centre
(IFSC), including KYC Registration Agencies and Market Infrastructure Institutions
(MIIs).
Sub: Integration of Regulated Entities with a KYC Registration Agency in the IFSC
1. In order to promote ease of doing business and to remove duplication of KYC
process for availing financial services in the IFSC, the IFSCA (KYC Registration
Agency) Regulations, 2025 (‘KRA Regulations’) were notified providing the
regulatory framework for registration, regulation and supervision of KYC
registration agencies (“KRA”) in the IFSC.
2. Reference is drawn to regulation 25 of the KRA Regulations wherein it is mandated
for every regulated entity to upload the KYC information on the system of KRA
within 3 working days from the date of completion of KYC process. In order to
operationalize KRAs and to streamline the process of uploading the KYC
information, it has been decided that all regulated entities in IFSC shall integrate
with at least one KRA registered with IFSCA for the purpose of uploading, storing,
retrieving and updating KYC records of their clients:
This mandate however, shall not apply to activities or entities exempted under
clause 1.2.3 of the IFSCA (Anti Money Laundering, Counter-Terrorist Financing
and Know Your Customer) Guidelines, 2022.
3. Instructions for Regulated Entities and KRAs
3.1. The regulated entities shall, within two months from the date of the circular,
integrate with at least one KRA registered with IFSCA.
3.2. The regulated entities shall ensure that all new clients onboarded on or after
September 01, 2026, are integrated with a KRA and the KYC details of the
clients are uploaded on the KRA system in accordance with the KRA
Regulations. In case the client’s KYC data already exists in the system, the
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upload modifications, if any, so as to ensure that the latest information about
the client is available in the KRA system in terms of regulation 25(1) of the
KRA Regulations.
3.3. The regulated entities shall ensure that KYC details of all active clients who
were onboarded prior to September 01, 2026 are uploaded to the KRA
system on or before October 30, 2026.
3.4. The KRAs shall ensure that a unique identification number is assigned to
each client in their database, which shall be used by the clients for
onboarding and availing services with other regulated entities in the IFSC.
3.5. The KRAs and regulated entities shall be responsible for ensuring
compliance with the KRA Regulations, this circular, and for putting in place
adequate systems, controls and oversight mechanisms.
4. The MIIs in the IFSC shall bring the mandate of this circular to the notice of their
members / participants, and shall also monitor the compliance thereof by them.
5. This circular is issued in exercise of powers conferred by section 12 of the IFSCA,
2019, read with regulation 25 and 35 of IFSCA (KYC Registration Agency)
Regulations, 2025, and shall come into force with immediate effect.
A copy of this circular is available on the website of IFSCA at www.ifsca.gov.in.
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