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Date: 2025-03-28 Category: Not Applicable State: Union Government Country: India

SEZ Compliance FAQs Booklet

Issued by International Financial Services Centres Authority · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This FAQ booklet, issued by the office of Administrator (IFSCA) in June 2025, provides guidance on SEZ compliance requirements for IFSC (International Financial Services Centre) units. It addresses key provisions, approval processes, and ongoing obligations under the SEZ Act and Rules. The booklet aims to clarify compliance procedures and deadlines for IFSC units operating within a Special Economic Zone. **Key Points / Main Content** * **SEZ Provisions and Role of Administrator (IFSCA)** * An IFSC unit is also an SEZ unit and must comply with SEZ Act/Rules. * Obtaining a Letter of Approval (LOA) under the SEZ Act is mandatory for setting up an IFSC unit. * The Administrator (IFSCA) exercises the powers of the Development Commissioner for IFSC units. * **Issuance of Letter of Approval (LOA)** * LOA is issued for specific operations authorized in the SEZ. * The application for LOA is submitted through the SWIT portal or, for certain activities, directly on the SEZ Online portal. * The LOA application requires specific documents, including the regulatory approval application. * The Unit Approval Committee (UAC) reviews complete applications. * **Bond-Cum-Letter of Undertaking (BLUT)** * BLUT is executed by a SEZ unit regarding its obligations under the SEZ Act/Rules. * The BLUT must be executed in Form-H on non-judicial stamp paper and approved by Customs and the Administrator (IFSCA). * **Eligibility Certificate (EC)** * EC is necessary to claim State tax exemptions. * The EC is issued along with the approved BLUT. * **Lease Deed** * A copy of the registered Lease Deed must be furnished within six months of LOA issuance. * **Change of Address/Addition of Premises/Deletion of Premises** * Prior approval from the Administrator (IFSCA) is required for any change in premises. * Specific steps must be followed for adding, changing, or deleting premises. * **Importer-Exporter Code (IEC)** * An IEC is mandatory for entities involved in import/export activities. * GIFT-IFSC units must apply to DGFT for an IEC and update it in the SEZ portal. * **Procurement of Sand** * A "Free Form-Others" request must be submitted in the SEZ online portal. * **Broadbanding/Change of Services** * Requires amendment of Authorized Operations of LOA. * **LOA Extension** * LOA is valid for one year and can be extended for two further years. * The unit must commence operations during the valid period, or the LOA will lapse. * Application for extension must be submitted to the Administrator (IFSCA). * **Commencement of Operations** * The unit must intimate the date of commencement to the Administrator (IFSCA). * **Reporting – MPR, SERF, APR** * The unit must submit Monthly Performance Report (MPR) in the SEZ Online portal. * The unit must submit the Service Exports Reporting Form (SERF) in the SEZ Online portal. * The unit must submit Annual Performance Report (APR) in the SEZ Online portal. * **Intimations under Instruction 109** * Compliances must be approved by UAC. * **LOA Renewal** * LOA renewal is governed by Rule 19. * **Exit** * A unit must apply for exit. **Impact Analysis** * **IFSC Units:** * **Impact:** Requires adherence to SEZ Act/Rules, detailed compliance procedures, and reporting requirements. * **Action Required:** Understanding and implementing the outlined SEZ compliance procedures, meeting deadlines for LOA renewal, and reporting requirements. * **Administrator (IFSCA):** * **Impact:** Provides regulatory oversight and processes applications related to LOA issuance, extensions, and other SEZ compliance matters. * **Action Required:** Review and process applications, conduct UAC meetings, provide clarifications on SEZ regulations, and monitor compliance.

Key Entities Referenced

IFSCA: International Financial Services Centres Authority, the issuer of the SEZ Compliance FAQs Booklet and a key regulator. SEZ Act: The Special Economic Zones Act, 2005, the primary legislation governing SEZ operations and compliance. SEZ Rules: The rules formulated under the SEZ Act, detailing operational procedures and compliance requirements. SEZ Online portal: The digital platform used for submitting applications, intimations, and compliance reports related to SEZ regulations. GIFT-IFSC: Gujarat International Finance Tec-City - International Financial Services Centre, the location to which this policy applies
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SEZ Compliance FAQs Booklet Issued by the office of Administrator (IFSCA)SEZ Compliance FAQ Booklet (v 1.1), June 2025 Abbreviations and Acronyms Acronym Definition APR Annual Performance Report BLUT Bond-Cum-Legal Undertaking BOA Board of Approval DCP Date of Commencement of Production DGFT Directorate General of Foreign Trade EC Eligibility Certificate FME Fund Management Entity Gujarat International Finance Tec-City - International GIFT-IFSC Financial Services Centre GOI Government of India IEC Importer-Exporter Code IFSCA International Financial Services Centres Authority LOA Letter of Approval MPR Monthly Performance Report NDML National Depository Markup Limited NSDL National Securities Depository Limited PLOA Provisional Letter of Allotment RCMC Registration-Cum-Membership Certificate SEZ Special Economic Zone SERF Service Exports Reporting Form UAC Unit Approval Committee FY Financial Year Page 1 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 DISCLAIMER This FAQ Booklet may be used only for general guidance and reference purposes and shall not be considered as legal advice. Any legal discrepancies (or) factual errors (or) suggestions regarding the contents of this Booklet may be communicated to ifsca- admin@ifsca.gov.in. Any action taken based on this Booklet shall not render IFSCA (or) the office of Administrator (IFSCA) (or) its officers thereof liable for any loss/damages to any entity. Page 2 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 Contents A. SEZ PROVISIONS AND ROLE OF ADMINISTRATOR (IFSCA) ....... 9 1. What is SEZ and how is it relevant for an IFSC unit? .............................................................. 9 2. Why is it necessary to get the SEZ approval for an IFSC unit? ................................................. 9 3. What is the role of Administrator (IFSCA)? ........................................................................... 9 4. What are the compliances required to be done by an IFSC unit under the SEZ Act/Rules? ..... 10 B. ISSUANCE OF LETTER OF APPROVAL ............................................. 11 5. What is the Letter of Approval (LOA) under the SEZ Act/Rules? ............................................ 11 6. What is the procedure to apply for LOA under SEZ Act? ...................................................... 11 7. Can the application for LOA be submitted in the SEZ Online portal directly instead of the SWIT portal? ..................................................................................................................................... 11 8. What are the activities for which the application for LOA has to be submitted in the SEZ Online portal directly? ......................................................................................................................... 11 9. What are the documents to be submitted along with the application for LOA? ...................... 12 10. What is the step-by-step process for approval of the LOA application? ............................ 12 11. What is the frequency and mode of the UAC meeting? ................................................... 13 12. After submitting the application for LOA, how will the applicant know if their application has been taken up in the UAC meeting? ........................................................................................... 13 13. Is it mandatory for the applicant to appear physically before the UAC? ............................ 13 14. Who can appear before the UAC from the applicant side? .............................................. 13 15. What happens if the applicant has missed the deadline for submitting the application for LOA? 14 16. What happens if the applicant missed the deadline for UAC because they encountered technical errors/glitches while submitting the application? ......................................................... 14 17. What is expected from the applicant during the proceedings of the UAC meeting? ........... 14 18. Once the application is approved in the UAC meeting, what are the next steps for the applicant to obtain the LOA? ..................................................................................................... 15 19. Is there any deadline for replying to deficiencies raised in the SEZ Online portal? ............. 15 20. When the application for LOA was made in the SWIT portal and not on the SEZ Online portal. How will the applicant be able to login to the SEZ Online portal? ....................................... 15 21. What should the applicant do if they have not received the login credentials for the SEZ Online portal? .......................................................................................................................... 15 22. How will the applicant know if the deficiency has been raised in the SEZ Online portal? ... 15 23. Can the applicant respond to the deficiencies by email/SWIT portal instead of the SEZ Online portal? .......................................................................................................................... 16 24. How will the applicant know if the LOA has been issued for them? .................................. 16 C. BOND-CUM-LETTER OF UNDERTAKING (BLUT) ......................... 16 25. What is the meaning of Bond-cum-Letter of Undertaking (BLUT) in the SEZ Act/Rules? ..... 16 26. What is the format of the BLUT? .................................................................................... 16 27. How should the BLUT be executed? .............................................................................. 16 28. What are the key points to remember while executing the BLUT? .................................... 17 29. What is the meaning of Bond Value calculation sheet? ................................................... 18 Page 3 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 30. What is the process of approval of the BLUT? ................................................................. 18 31. What is the process of approval of the physical BLUT? ................................................... 18 32. After submitting the physical BLUT, how will the unit know if the same is approved? ......... 18 33. What is the process of approval of the BLUT in the SEZ Online portal? ............................. 19 34. Can the units file the BLUT directly in the SEZ Online portal without obtaining approval in the physical copy first? ................................................................................................................... 19 35. What should the unit do if the unit wishes to top-up/increase the Bond amount? ............. 19 36. Why is it required to file the BLUT in the SEZ Online portal? ............................................. 19 37. After submitting the ‘New LUT’/‘Update LUT’ request in the SEZ Online portal, how will the unit know if the same is approved? ............................................................................................ 20 38. If the unit does not have access to the SEZ Online portal, how should the ‘New LUT’/’Update LUT’ request be submitted? ...................................................................................................... 20 D. ELIGIBILITY CERTIFICATE ................................................................ 20 39. What is the Eligibility Certificate (EC) and why is it required? ........................................... 20 40. How should the unit apply for getting the EC issued in their name? .................................. 21 E. LEASE DEED ............................................................................................. 21 41. What is the deadline for execution of Lease Deed for a unit under the SEZ Act/Rules? ...... 21 42. What will happen if the unit fails to submit the registered Lease Deed within six months from the issuance of the LOA? ........................................................................................................... 21 43. What are the documents required for execution of the Lease Deed? ............................... 22 44. How can the unit register the Lease Deed if the LOA has expired? ................................... 22 45. How should the Lease Deed be submitted of office of Administrator?.............................. 22 46. If the unit does not have access to the SEZ Online portal, how should the Unit Lease Deed request be submitted? .............................................................................................................. 22 F. CHANGE OF ADDRESS/ADDITION OF PREMISES/DELETION OF PREMISES ........................................................................................................ 23 47. If a unit wishes to shift their premises to a different address (or) expand their office by including a new premises in their address, can the unit proceed to do the same immediately? ...... 23 48. What are the steps to be followed by the unit for the change of address to another premises from their existing premises? .................................................................................................... 23 49. What are the steps to be followed by the unit for the addition of address of another premises to their existing address? .......................................................................................................... 23 50. After applying for change/addition of address in the SEZ portal, how will the unit know if the application is complete? ........................................................................................................... 24 51. What are the conditions to be followed by the unit after the change/addition of address is approved in the SEZ Online portal? ............................................................................................ 24 52. What are the steps to be followed by the unit for the deletion of address of a premises from their existing address? .............................................................................................................. 25 53. After applying for deletion of address in the SEZ portal, how will the unit know if the application is complete? ........................................................................................................... 25 54. What are the steps to be followed by the unit after the deletion of address is approved in the SEZ Online portal? .................................................................................................................... 25 G. IMPORTER-EXPORTER CODE (IEC) ................................................. 26 55. What is the Importer-Exporter Code (IEC)? .................................................................... 26 Page 4 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 56. How can a unit obtain IEC code? ................................................................................... 26 57. Is an IEC code required for GIFT-IFSC units? .................................................................. 26 58. What are the steps to update the IEC in the SEZ portal? .................................................. 26 H. PROCUREMENT OF SAND .................................................................... 26 59. What is the process for procurement of sand to GIFT IFSC for interior construction by the Unit? 26 I. BROADBANDING/CHANGE OF SERVICES ...................................... 27 60. If a unit wishes to obtain IFSCA approval for additional services, other than those authorized in the LOA, what are the SEZ compliances required to be followed by the unit? ............................. 27 61. What is the procedure to apply for amendment/Broadbanding of the Authorized Operations in the LOA?............................................................................................................................... 27 62. What is procedure for approval of amendment/Broadbanding of Authorized Operations in the LOA? .................................................................................................................................. 28 63. After applying for amendment/Broadbanding of LOA Authorized Operations in the SEZ portal, how will the unit know if the application is complete? ....................................................... 28 64. Should the unit submit the amendment/Broadbanding request in physical/email mode also? 28 65. If the unit does not have access to the SEZ Online portal, how should the amendment/Broadbanding application be submitted? ............................................................... 29 J. LOA EXTENSION ..................................................................................... 29 66. What is the validity of the Letter of Approval (LOA) issued under the SEZ Act? .................. 29 67. What happens to the LOA if the unit has not commenced business operations within one year? 29 68. How should a unit apply for LOA Extension? .................................................................. 29 69. What if the unit has not registered the Lease Deed at the time of applying for an LOA Extension? ............................................................................................................................... 30 70. What if the LOA of the unit has already expired? Can the unit still obtain an LOA Extension? 30 71. What are the consequences of expiry of LOA? ................................................................ 30 72. What happens if the unit has not been able to commence operations even after obtaining LOA Extension for two years from the Administrator (IFSCA)? ...................................................... 31 73. What is the procedure for obtaining LOA Extension beyond two years from the expiry of original LOA? ............................................................................................................................ 31 74. After applying for LOA Extension in the SEZ portal, how will the unit know if the application is complete? ............................................................................................................................... 32 75. Should the unit submit the LOA Extension application in physical/email mode also? ........ 32 76. If the unit does not have access to the SEZ Online portal, how should the LOA Extension application be submitted? ........................................................................................................ 32 K. COMMENCEMENT OF OPERATIONS ............................................... 33 77. What is the significance of Commencement under the SEZ Act? ..................................... 33 78. What is considered as Commencement of service activity under the SEZ provisions? ...... 33 79. Is the validity of the LOA automatically extended to 05 years from the date of commencement once the unit submits an intimation to the Administrator (IFSCA)? ..................... 33 80. How should a unit intimate the Commencement of service activity? ............................... 34 Page 5 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 81. Is it mandatory to generate SERF ID and include the same in the ‘Free Form-Unit- Intimation of DCP’ request that is filed on the SEZ Online portal?................................................................. 34 82. What if the unit has not registered the Lease Deed at the time of intimating the Commencement of service activity? ......................................................................................... 34 83. What if the LOA of the unit has expired already? Can the unit still raise an invoice and submit intimation of commencement? ...................................................................................... 34 84. The unit has commenced operations before the expiry of LOA and submitted intimation of commencement in the SEZ Online portal. However, before the intimation is taken on record, the LOA of the unit has expired. Should the unit apply for LOA Extension separately in the SEZ portal? . 35 85. The unit has commenced operations before the expiry of LOA. However, before submitting the intimation of commencement in the SEZ Online portal, the LOA of the unit has expired. Should the unit apply for LOA Extension separately in the SEZ portal? ..................................................... 35 86. What documents are considered as proof of Commencement for an IFSC unit? .............. 35 87. If the unit has obtained letter approving the Commencement in physical form but the same is not updated in the SEZ Online portal. How should the unit get the dates updated in the SEZ Online portal? 36 88. After submitting the intimation of commencement in the SEZ portal, how will the unit know if the application is complete?................................................................................................... 36 89. Should the unit submit the intimation of Commencement in physical/email mode also? .. 36 90. If the unit does not have access to the SEZ Online portal, how should the intimation of Commencement be submitted? ............................................................................................... 37 L. REPORTING – MPR, SERF, APR........................................................... 37 MONTHLY PERFORMANCE REPORT (MPR) .............................................................................................. 37 91. What is the Monthly Performance Report (MPR)? ........................................................... 37 92. How should the MPR be submitted? .............................................................................. 37 93. Should all the units submit the MPR? ............................................................................ 37 94. What is the deadline for submission of MPR? ................................................................. 37 95. A unit has missed out on submitting the MPR for a particular month before the deadline. Can they submit it later? ........................................................................................................... 38 96. Should the unit submit the MPR in physical/email mode also? ........................................ 38 97. If the unit does not have access to the SEZ Online portal, how should the MPR be submitted? .............................................................................................................................. 38 SERVICE EXPORTS REPORTING FORM (SERF) .......................................................................................... 38 98. What is the Service Exports Reporting Form (SERF)? ...................................................... 38 99. How should the SERF be submitted? ............................................................................. 38 100. Should all the units submit the SERF? ........................................................................... 39 101. What is the deadline for submission of SERF? ................................................................ 39 102. A unit has submitted intimation of commencement in the SEZ Online portal and the same is under process for being taken on record. When should the unit file the SERF? .............................. 39 103. What are the consequences of not submitting the SERF? ............................................... 39 104. A unit has missed out on submitting the SERF for a particular month before the deadline. Can they submit it later? ........................................................................................................... 39 105. Should the unit submit the SERF in physical/email mode also? ....................................... 40 106. If the unit does not have access to the SEZ Online portal, how should the SERF be submitted? .............................................................................................................................. 40 ANNUAL PERFORMANCE REPORT (APR) ................................................................................................. 40 107. What is the Annual Performance Report (APR)? ............................................................. 40 108. What is the format of the APR? ...................................................................................... 40 Page 6 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 109. How should the APR be submitted? .............................................................................. 40 110. Should all the units submit the APR? ............................................................................. 41 111. What is the deadline for submission of APR? ................................................................. 41 112. What are the consequences of not submitting the APR? ................................................. 41 113. A unit has missed out on submitting the APR for a particular year before the deadline. Can they submit it later? .................................................................................................................. 41 114. Should the unit submit the APR in physical/email mode also? ......................................... 41 115. If the unit does not have access to the SEZ Online portal, how should the APR be submitted? .............................................................................................................................. 41 M. INTIMATIONS UNDER INSTRUCTION 109 ....................................... 42 116. What is Instruction 109 dated 18.10.2021 issued by the Ministry of Commerce and what are the compliances required to be done by the units under this Instruction? .................................... 42 117. What is the procedure to intimate the compliances under Instruction 109? ..................... 42 118. What is procedure for approval of compliances under Instruction 109? ........................... 42 119. Should the unit intimate the compliances under Instruction 109 in physical/email mode also? 42 120. If the unit does not have access to the SEZ Online portal, how should the intimation of compliances under Instruction 109 be submitted? ..................................................................... 43 N. LOA RENEWAL ........................................................................................ 43 121. What is the meaning of LOA Renewal under the SEZ Act? ............................................... 43 122. How should a unit submit the application for LOA Renewal? ........................................... 43 123. When should a unit submit the LOA Renewal application? .............................................. 44 124. What if the LOA of the unit has already expired? Can the unit still submit the application for LOA Renewal? .......................................................................................................................... 44 125. What are the criteria for approving the LOA Renewal? ..................................................... 44 126. Will the LOA be renewed if the unit has violated any of the above criteria? ....................... 44 127. After submitting the ‘LOA Renewal’ request in the SEZ portal, how will the unit know if the application is complete? ........................................................................................................... 45 128. Should the unit submit the ‘LOA Renewal’ request in physical/email mode also? .............. 45 129. If the unit does not have access to the SEZ Online portal, how should the LOA Renewal request be submitted? .............................................................................................................. 45 O. EXIT ............................................................................................................ 46 130. What is the further course of action available under SEZ Rules for a unit that does not wish to continue their operations in IFSC? ......................................................................................... 46 131. What are the steps to be followed by a unit if they wish to surrender the LOA (or) do not wish to start/continue operations in their IFSC unit (or) exit from SEZ? ................................................. 46 132. What are the documents to be submitted by the unit while applying for Exit under Rule 74 of SEZ Rules? ............................................................................................................................... 46 133. What is the process of approval of Exit under Rule 74 of SEZ Rules? ................................ 46 134. What are the actions to be taken by the unit after exit? ................................................... 47 135. A unit had obtained SEZ LOA and IFSCA approval but is unable to (or) does not commence their business operations. It surrenders the IFSCA approval and obtains Exit from SEZ. ................ 47 Subsequently, it wishes to obtain IFSCA Licence under same (or) different regulations after first exit. For this, the unit enters into a mutual understanding with the Co-Developer to continue to pay rent Page 7 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 to their premises even after Exit, and the Co-Developer has agreed to issue PLOA in the same address to the unit for new activity. ............................................................................................ 47 In this scenario, can a unit continue to occupy their premises even after the Exit is approved so that they may obtain new LOA in the same premises after some time? ............................................... 47 136. Can a unit continue to occupy their premises even after the Exit Approval, since they wish to obtain IFSCA Licence in the near future and have already registered a long-term Lease Deed for the premises? ................................................................................................................................ 48 P. MISCELLANEOUS ................................................................................... 48 137. What are the steps required to be followed after obtaining LOA? ..................................... 48 138. If there are any issues with the SEZ Online portal, how can the unit resolve them? ........... 48 139. What are the common reasons due to which a unit may lose access to the SEZ Online portal? 48 140. What are some common issues to be noted by the unit while using SEZ Online portal? .... 49 141. While submitting any application in the SEZ Online portal, the unit receives an error message stating ‘Could not establish elock connection.’ How should this error be resolved? ........ 49 Q. REGISTRATION-CUM-MEMBERSHIP CERTIFICATE (RCMC) .. 50 142. What is the Registration-Cum-Membership Certificate (RCMC)? ..................................... 50 143. How can a unit obtain RCMC certificate? ....................................................................... 50 144. Is an RCMC certificate required for GIFT-IFSC units? ...................................................... 50 145. What are the steps to update the RCMC certificate in the SEZ portal? .............................. 50 R. ANNEXURE - A – FORMAT OF BLUT [FORM-H] ............................. 51 S. ANNEXURE - B – FORMAT OF APR [FORM-I] ................................. 55 T. ANNEXURE - C – INDICATIVE LIST OF DOCUMENTS FOR PROOF OF COMMENCEMENT ................................................................... 59 U. ANNEXURE - D – FORMAT OF FORM-F1 .......................................... 63 V. ANNEXURE - E – FORMAT OF FORM-L ............................................ 65 Page 8 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 A. SEZ provisions and role of Administrator (IFSCA) 1. What is SEZ and how is it relevant for an IFSC unit? (i) SEZ stands for Special Economic Zone. In India, SEZs have been setup in various parts of the country through the Special Economic Zones Act, 2005. The SEZs are focussed primarily of export promotion and offer various tax incentives. (ii) International Financial Services Centres Authority (IFSCA) is a statutory authority set up by an Act of Indian Parliament inter-alia to develop and regulate the financial services market in the International Financial Services Centres (IFSCs) in India. (iii) Under Section 18 of the SEZ Act, an International Financial Services Centre (IFSC) can be setup only within a SEZ. GIFT-IFSC is the first IFSC setup in India. (iv) By virtue of the same, every IFSC unit approved/licenced/registered/authorized by IFSCA under the IFSCA Act is an SEZ unit also and has to comply with the provisions of the SEZ Act/Rules also. 2. Why is it necessary to get the SEZ approval for an IFSC unit? A unit in IFSC has to be a unit under the SEZ Act also and hence it is mandatory for every entity intending to setup a unit in IFSC, to obtain the Letter of Approval (LOA) under the SEZ Act, before obtaining the IFSCA approval. 3. What is the role of Administrator (IFSCA)? Every SEZ is administered by a Development Commissioner under the SEZ Act who is overall in charge of the Special Economic Zone and exercises administrative control and supervision over the Zone. In order to provide a unified regulatory framework for IFSC units, the powers of the Development Commissioner for IFSC units have been vested with an officer of IFSCA designated as ‘Administrator (IFSCA)’ vide Section 12 (7) of the SEZ Act. Page 9 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 4. What are the compliances required to be done by an IFSC unit under the SEZ Act/Rules? The following chart depicts the life cycle of a SEZ unit and different requirements to be complied with by it at different stages of its life cycle: Figure 1 – SEZ Process Workflow Page 10 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 B. Issuance of Letter of Approval 5. What is the Letter of Approval (LOA) under the SEZ Act/Rules? The Letter of Approval (LOA) is issued under SEZ Act to every unit for a specific set of operations authorized to be performed by it in the SEZ. The unit must provide only the services specified in the Authorized Operations and nothing beyond it. 6. What is the procedure to apply for LOA under SEZ Act? IFSCA has launched the SWIT portal through which the applicants can submit their application for obtaining IFSCA Regulatory approval. In the SWIT portal, the applicant units are required to file a Common Application Form (CAF) for obtaining IFSCA Regulatory approval. Section-D of the CAF pertains to the application for obtaining the SEZ LOA. Once the CAF is submitted and signed using Digital Signature, the application for SEZ LOA is submitted automatically on the SEZ Online portal. Further processing of the application for LOA approval is done in the SEZ Online portal only and not in the SWIT portal. 7. Can the application for LOA be submitted in the SEZ Online portal directly instead of the SWIT portal? For all the activities for which application filing is enabled through SWIT portal by IFSCA, the SEZ LOA application must be filed only through the SWIT portal. Public Notice issued in this regard may be found here. There are a very few activities requiring IFSCA approval, which are not yet enabled under the SWIT portal. The application for LOA for such activities is required to be filed in the SEZ Online portal directly in Form- FA. 8. What are the activities for which the application for LOA has to be submitted in the SEZ Online portal directly? The Public Notice issued by IFSCA regarding SWIT portal may be found here. Apart from the activities mentioned in this Public Notice, the LOA application for Funds is also required to be filed in the SEZ Online portal. The applicants who file the application for SEZ LOA directly in the SEZ Online portal must ensure that their Page 11 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 application for the IFSCA Regulatory approval is also filed simultaneously. It may be noted that the application for SEZ LOA is processed only after the corresponding IFSCA Regulatory application is also filed. 9. What are the documents to be submitted along with the application for LOA? PUBLIC NOTICE No. 02/2024-25 dated 05.11.2024 issued by the office of Administrator (IFSCA) in this regard may be found here. 10. What is the step-by-step process for approval of the LOA application? (i) For the activities for whom the application filing is enabled under the SWIT, the application so filed under SWIT gets forwarded automatically to the IFSCA’s regulatory team for regulatory approval, and also to the office of Administrator (IFSCA) through SEZ portal, for processing for LOA. (ii) For the activities for whom the application filing is not enabled under the SWIT, application for LOA needs to be filed directly under SEZ online portal. On receipt of such application in SEZ portal, confirmation from IFSCA regulatory team is sought about filing of the regulatory application before proceeding further in the matter. (iii) After examination of the LOA applications received in SEZ online portal, through either of the above modes [(i) or (ii)], the same are examined by the office of Administrator (IFSCA) and any deficiencies/queries is raised in the SEZ portal itself. The applicant must login to the SEZ Online portal and make the necessary rectifications against the deficiencies so that the application becomes complete. (iv) The applications that are complete in all respects are then placed before the Unit Approval Committee (UAC) for consideration, by including the application in the Agenda for the UAC meeting. Once the application is approved by the UAC, the same is recorded in the Minutes of the Meeting. Once the Minutes of the Meeting are finalized and approved, the LOA is issued on the SEZ Online portal itself. Page 12 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 11. What is the frequency and mode of the UAC meeting? The UAC normally meets once every week. The meetings are conducted in hybrid mode – in person and through VC. The date of the meeting for each week along with the deadline for submission of applications for that UAC is informed by way of a Meeting Notice issued in the previous week. The Meeting Notices can be found here. 12. After submitting the application for LOA, how will the applicant know if their application has been taken up in the UAC meeting? After examination of the LOA applications received in SEZ online portal, the same are examined by the office of Administrator (IFSCA) and any deficiencies/queries is raised in the SEZ portal itself. The applicant must login to the SEZ Online portal and make the necessary rectifications against the deficiencies so that the application becomes complete. The Agenda for each UAC meeting is published on the IFSCA website one (or) two days before the UAC. The Agenda of the UAC meetings can be found here. The office of Administrator (IFSCA) also sends email to the applicants who are included in the Agenda. This email generally includes a copy of the Agenda and the Meeting link to join the meeting via Video Conference. The applicants are expected to send the return email communicating the name(s) of their authorized representatives to attend the UAC meeting, along with Authorisation letters in their favour. 13. Is it mandatory for the applicant to appear physically before the UAC? The UAC meetings are conducted in hybrid mode and the authorized representatives of the applicant may attend via Video Conference (or) in person, as per their convenience, unless specifically advised to attend in a particular mode. 14. Who can appear before the UAC from the applicant side? The person representing the applicant in the UAC meeting is required to submit a valid Board Resolution/Authority Letter from the Board of Directors/Partners authorizing him/her to appear before the UAC, along with identification documents. The said authorization and ID shall be submitted to the office of Administrator (IFSCA) Page 13 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 via email before the UAC. The authorized representatives are expected to be well- versed about the proposal and be prepared to discuss both short-term and long-term plans of the applicant. 15. What happens if the applicant has missed the deadline for submitting the application for LOA? If the deadline for submitting the application for LOA for a particular UAC meeting is missed, all applications, if complete, are taken up in the next UAC meeting. 16. What happens if the applicant missed the deadline for UAC because they encountered technical errors/glitches while submitting the application? Exceptions may be considered only in rare cases of genuine glitches/malfunctions which are exclusively attributable to the SWIT portal (or) the SEZ Online portal, and the applicant is able to demonstrate that there is a case where the application needs to be taken up urgently and it can’t wait till next UAC. Any mistakes/misunderstandings/oversight by the applicant shall not be considered as technical errors/glitches. 17. What is expected from the applicant during the proceedings of the UAC meeting? (i) During the meeting, the applicant is expected to give a brief of their project proposal and answer the questions, if any, asked by the UAC. UAC informs the applicant whether the proposal is approved (or) not. (ii) The Minutes of the meeting, detailing the decisions taken on each application are published on the IFSCA website, normally within a week’s time. The Minutes of the UAC meeting can be found here. Page 14 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 18. Once the application is approved in the UAC meeting, what are the next steps for the applicant to obtain the LOA? Once the application is approved by the UAC, the decision is recorded in the Minutes of the Meeting. Once the Minutes of the Meeting are finalized and approved, the LOA is issued on the SEZ Online portal itself. 19. Is there any deadline for replying to deficiencies raised in the SEZ Online portal? It is the responsibility of the applicant to proactively and properly respond to and rectify the deficiencies raised in the SEZ Online portal without any inordinate delay. The application is placed before the UAC for consideration only after all the deficiencies are rectified in the SEZ Online portal. Hence, it is in the interest of the applicant that the deficiencies are rectified swiftly so that the application may be included in the Agenda for the UAC. 20. When the application for LOA was made in the SWIT portal and not on the SEZ Online portal. How will the applicant be able to login to the SEZ Online portal? Once the Common Application Form (CAF) is submitted and DSC signed in the SWIT portal, the applicant automatically receives the login credentials for the SEZ Online portal in their email address given in the SWIT portal. 21. What should the applicant do if they have not received the login credentials for the SEZ Online portal? In case the applicant has not received the login credentials, they may contact NSDL using the details available here (or) write to deepakg@ndml.in. 22. How will the applicant know if the deficiency has been raised in the SEZ Online portal? The Deficiency is raised in the SEZ Online portal generally within 1-2 working days after submission of application in the SWIT/SEZ Online portal. The applicant must login to the SEZ Online portal, access the application request from the Inbox and find Page 15 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 out about the deficiencies/discrepancies from the Remarks History link of the application. 23. Can the applicant respond to the deficiencies by email/SWIT portal instead of the SEZ Online portal? No, the deficiencies must be rectified in the SEZ Online portal only. 24. How will the applicant know if the LOA has been issued for them? The applicant must login to the SEZ Online portal, access the application request from the Inbox and download the LOA, once the LOA is issued in the SEZ Online portal. C. BOND-CUM-LETTER OF UNDERTAKING (BLUT) 25. What is the meaning of Bond-cum-Letter of Undertaking (BLUT) in the SEZ Act/Rules? As per Rule 22 of SEZ Rules, the BLUT is required to be executed by a SEZ unit with regard to its obligations and compliances under the SEZ Act/Rules. Once executed, the BLUT is required to be approved jointly by the Specified Officer of Customs and the Administrator (IFSCA). 26. What is the format of the BLUT? The BLUT is required to be executed in Form-H which is provided in SEZ Rules. The format is attached herein as Annexure-A. 27. How should the BLUT be executed? As per Instruction No. 02 dated 24.03.2006 issued by the Ministry of Commerce, the BLUT is required to be executed on a non-judicial stamp paper of Rs. 100, notarized Page 16 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 by a Notary Public registered only in Gujarat. The documentary requirements are as follows. a) Name and SEZ address of the unit shall be mentioned properly in the BLUT without any mistake/typo errors. b) Letter submitted by the unit accepting the LOA c) Bond Value Calculation Sheet d) Board Resolution authorizing the Obligor to execute and submit the BLUT e) Signatures of Obligor and witnesses affixed on the BLUT along with their name and address mentioned therein. f) Recent passport-size photos of Obligor affixed on the BLUT g) KYC documents (Aadhar/PAN card) of the Obligor and witnesses attached to the BLUT 28. What are the key points to remember while executing the BLUT? The PUBLIC NOTICE No. 02/2024-25 dated 05.11.2024 issued by the office of Administrator (IFSCA) in this regard may be found here. The key points to note are as follows: a) The BLUT shall be in the proper format, as specified in Form-H of SEZ Rules, 2006 along with Instruction No. 2 dated 24.03.2006 of F. No. 5/1/2006-EPZ issued by Department of Commerce. b) Letter from the entity accepting the terms and conditions of the LOA may be attached with the BLUT. c) Proper calculation sheet showing the amount for which BLUT is executed shall be attached and the same shall be signed by the obligor. Care may be taken to ensure that the amount for which the BLUT is executed is not less than the amount shown in the calculation sheet. d) Proper resolution authorizing the Obligor to sign/execute the BLUT under SEZ Act and Rules. e) Name, address and photo of the Obligor are properly mentioned/pasted in the BLUT along with a proper ID proof attached. Page 17 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 f) Name and address of the witnesses are properly mentioned in the BLUT along with a proper ID proof attached. 29. What is the meaning of Bond Value calculation sheet? The Bond Value calculation sheet enumerates the total Customs duties and GST that the SEZ unit projects to save in the next 05 financial years. The amount for which the BLUT is executed must not be less than the amount shown in the calculation sheet. The calculation sheet has to be in the letterhead of the applicant unit and be signed by the Obligor with proper seal and stamp. 30. What is the process of approval of the BLUT? The BLUT is approved in two steps – first in physical form, then in the SEZ Online portal (through a ‘New LUT’ request). The detailed procedure is explained below. 31. What is the process of approval of the physical BLUT? (i) The physical copy of the executed BLUT is required to be submitted to the office of Administrator (IFSCA) by post with a covering letter addressed to the Administrator (IFSCA). Once the same is received, the format, contents and documents attached with the BLUT are verified by the office of Administrator (IFSCA). (ii) In case of any discrepancies/mistakes, the same are communicated to the unit by the office of Administrator (IFSCA). After receipt of all the proper/updated documentation, the BLUT is forwarded to the Specified Officer of Customs for approval. After the approval of Specified Officer, the BLUT is finally approved by the Administrator (IFSCA). 32. After submitting the physical BLUT, how will the unit know if the same is approved? Once the physical BLUT is approved by both the Specified Officer and the Administrator (IFSCA), the pdf copy of the approved BLUT is sent to the unit by email Page 18 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 along with an Eligibility Certificate. The original physical copy of the approved BLUT is retained by the office of Administrator (IFSCA). 33. What is the process of approval of the BLUT in the SEZ Online portal? For approval of the BLUT in the SEZ Online portal, after approval of the BLUT in physical form, the unit is required to file a ‘New LUT’ request in the portal, attaching the pdf copy of the approved BLUT as a supporting document. While submitting the ‘New LUT’ request, the unit must ensure that the details of Bond amount, Obligor, etc. as recorded in the approved BLUT are mentioned properly without any mistakes. Once the ‘New LUT’ request is filed, the same is approved by Specified Officer and Administrator (IFSCA) in the SEZ Online portal. Once approved, the Bond amount along with LUT validity dates will be automatically updated for the unit in the SEZ Online portal. 34. Can the units file the BLUT directly in the SEZ Online portal without obtaining approval in the physical copy first? No, the units are required to obtain approval first in the physical copy and then upload the approved BLUT in the SEZ Online portal by filing a ‘New LUT’ request. 35. What should the unit do if the unit wishes to top-up/increase the Bond amount? The unit must submit another fresh BLUT, as explained above, in physical form to the office of Administrator (IFSCA). Once the same is approved by both the Specified Officer and Administrator (IFSCA), the pdf copy of the approved BLUT is sent to the unit by email. The original copy of the approved BLUT is retained by the office of Administrator (IFSCA). Then the unit must get the updated BLUT approved in the SEZ Online portal by filing an ‘Update LUT’ request following the same process as explained above. 36. Why is it required to file the BLUT in the SEZ Online portal? The units will be able to execute any transaction in the SEZ Online portal related to procurement of any goods/services only after the BLUT is approved in the SEZ Page 19 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 Online portal. In many cases, it is noticed that the units submit the ‘New LUT’/’Update LUT’ request many weeks/months after getting the physical copy approved. Care should be taken by the unit to avoid such delays which may lead to procedural complexities. Once the pdf copy of the approved BLUT is received by the unit via email, the same should immediately be submitted in the SEZ Online portal through a ‘New LUT’/’Update LUT’ request, as the case may be. 37. After submitting the ‘New LUT’/‘Update LUT’ request in the SEZ Online portal, how will the unit know if the same is approved? Once the unit has applied in the SEZ Online portal, any deficiencies/queries is raised in the SEZ portal itself. The unit must login to the SEZ Online portal, access the ‘New LUT’/’Update LUT’ request from the Inbox and find out about the deficiencies/discrepancies from the Remarks History link of the request. Once the ‘New LUT’/’Update LUT’ request is approved in the portal, the Bond amount along with LUT validity dates are automatically updated for the unit in the SEZ Online portal. 38. If the unit does not have access to the SEZ Online portal, how should the ‘New LUT’/’Update LUT’ request be submitted? If the unit does not have access to the SEZ Online portal, they may retrieve access to the portal by contacting NSDL/NDML using the details available here (or) write to abhisheka@ndml.in/aweinashj@ndml.in. D. Eligibility Certificate 39. What is the Eligibility Certificate (EC) and why is it required? Under the Gujarat SEZ Act/Rules, the Eligibility Certificate issued by the Administrator (IFSCA) is necessary to claim State tax exemptions such as stamp duty. Page 20 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 40. How should the unit apply for getting the EC issued in their name? Once the BLUT is approved by both the Specified Officer and the Administrator (IFSCA), the pdf copy of the approved BLUT is sent to the unit by email along with the Eligibility Certificate. There is no requirement to make any separate application for the EC. E. Lease Deed 41. What is the deadline for execution of Lease Deed for a unit under the SEZ Act/Rules? As per Rule 18 (2) of SEZ Rules, a copy of the registered Lease Deed is required to be furnished to the Administrator (IFSCA) within six months from the issuance of LOA. 42. What will happen if the unit fails to submit the registered Lease Deed within six months from the issuance of the LOA? (i) As per Rule 18 (2) of SEZ Rules, if a unit fails to submit the registered Lease Deed within six months from the issuance of LOA, the Unit Approval Committee may take action to withdraw the LOA after giving an opportunity of being heard. (ii) If the unit is not able to register the Lease Deed within six months from the issuance of LOA, the unit is required to send an email to ifsca- admin@ifsca.gov.in requesting the UAC to condone the delay and seek an extension of the deadline to submit the Lease Deed. The request is examined by the office of Administrator (IFSCA) and placed before the UAC for its consideration, by including the application in the Agenda for the UAC meeting. The unit has to appear before the UAC and explain the reasons for the delay. (iii) After hearing the unit's case, the UAC may grant an extension for registering and submitting the lease deed. If the UAC is not satisfied with the reasons given for the delay, the UAC may decide to withdraw the LOA, which effectively ceases the existence of the unit in the SEZ. Page 21 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 43. What are the documents required for execution of the Lease Deed? While executing the Lease Deed, it is necessary for the unit to have the following documents: a) Valid LOA - As per Rule 18(2), the Co-Developer/Developer shall enter into a lease agreement with the unit only after the issuance of LOA by the Administrator (IFSCA). b) Eligibility Certificate – Under Gujarat SEZ Act/Rules, the Eligibility Certificate issued by the Administrator (IFSCA) is necessary to claim State tax exemptions such as stamp duty. The EC will be issued to the unit along with approved copy of the BLUT. 44. How can the unit register the Lease Deed if the LOA has expired? If the LOA is found to have expired at the time of registering the Lease Deed, the unit must obtain LOA Extension by applying on the SEZ Online portal. Registering the Lease Deed on an invalid/expired LOA is a violation of Rule 18(2) of SEZ Rules and may attract monetary penalties. 45. How should the Lease Deed be submitted of office of Administrator? The unit must email a copy of the registered Lease Deed to ifsca- admin@ifsca.gov.in. Simultaneously, the unit must submit a ‘Unit Lease Deed’ request in the SEZ Online portal. The unit must ensure that the term of the Lease Deed and address of the unit are properly mentioned in the ‘Unit Lease Deed’ request submitted in the SEZ Online portal. 46. If the unit does not have access to the SEZ Online portal, how should the Unit Lease Deed request be submitted? If the unit does not have access to the SEZ Online portal, they may retrieve access to the portal by contacting NSDL/NDML using the details available here (or) write to abhisheka@ndml.in/aweinashj@ndml.in. Page 22 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 F. Change of Address/Addition of premises/Deletion of premises 47. If a unit wishes to shift their premises to a different address (or) expand their office by including a new premises in their address, can the unit proceed to do the same immediately? No, the LOA is issued to a unit on a specific address based on the Provisional Letter of Allotment issued by a Developer/Co-Developer. In case the unit wishes to change their premises (or) add a new premises to their address, the unit has to obtain prior approval of the Administrator (IFSCA). As per condition 13 of Form-H, the unit shall not change the location of the premises except with the written permission of the Administrator (IFSCA). Operating from a premises not approved in the LOA of the unit is a violation of SEZ Act/Rules and may attract monetary penalties (or) cancellation of LOA. 48. What are the steps to be followed by the unit for the change of address to another premises from their existing premises? The Unit is required to submit a request for the change of address on the SEZ portal under ‘Free Form - Change of Area (Addition)’ and attach a copy of the Provisional Letter of Allotment (PLOA) issued by the Developer (or) Co-Developer of the new premises to which they intend to shift. In the Free Form request, the unit must clearly mention if the request is for change of premises (or) addition of a new premises. 49. What are the steps to be followed by the unit for the addition of address of another premises to their existing address? The Unit is required to submit a request for the addition of address on the SEZ portal under ‘Free Form - Change of Area (Addition)’ and attach a copy of the Provisional Letter of Allotment (PLOA) issued by the Developer (or) Co-Developer for the new premises to be added. In the Free Form request, the unit must clearly mention if the request is for change of premises (or) addition of a new premises. Page 23 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 50. After applying for change/addition of address in the SEZ portal, how will the unit know if the application is complete? (i) Once the unit has applied in the SEZ Online portal, any deficiencies/queries are raised in the SEZ portal itself. The unit may login to the SEZ Online portal, access the ‘Free Form - Change of Area (Addition)’ request from the Inbox and find out about the deficiencies/discrepancies, if any, raised by the office of Administrator from the Remarks History link of the request. (ii) Once the ‘Free Form - Change of Area (Addition)’ request is approved in the portal, the address details will be updated in the portal and a letter for approval of change/addition of address will be issued in the SEZ Online portal. The applicant unit may download the letter from the portal from the SEZ Online ID of the ‘Free Form - Change of Area (Addition)’ request. After approval in the SEZ Online portal, a fresh Eligibility Certificate incorporating the changed/additional premises in the address is issued to the unit by email separately. 51. What are the conditions to be followed by the unit after the change/addition of address is approved in the SEZ Online portal? The approval for change/addition of address is subject to the following conditions - a) The unit has to submit a copy of the registered Lease Deed for the new changed premises/added premises as required under Rule 18 (2) of SEZ Rules, 2006. b) In case of change of address, if the unit has registered a Lease Deed in the old address, then the same has to be cancelled and a copy of the cancelled Lease Deed is required to be submitted to the office of Administrator (IFSCA). c) The BLUT executed in the previous address, along with all its terms and conditions, shall be applicable and binding on the unit in the new changed address also. In case BLUT has not been executed by the unit in the previous address, then the unit has to execute fresh BLUT for the new changed address and submit the same to the office of Administrator (IFSCA) for processing/approval. Page 24 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 52. What are the steps to be followed by the unit for the deletion of address of a premises from their existing address? The Unit is required to submit a request for the deletion of address on the SEZ portal under ‘Free Form - Change of Area (Deletion)’. In the Free Form request, the unit must clearly mention the premises that they wish to delete from their address. The unit must not apply for deletion of a premises which is the sole premises held by them as that would make the LOA untenable under law. 53. After applying for deletion of address in the SEZ portal, how will the unit know if the application is complete? Once the unit has applied in the SEZ Online portal, any deficiencies/queries will be raised in the SEZ portal itself. The unit may login to the SEZ Online portal, access the ‘Free Form - Change of Area (Deletion)’ request from the Inbox and find out about the deficiencies/discrepancies if any raised, from the Remarks History link of the request. Once the ‘Free Form - Change of Area (Deletion)’ request is approved in the portal, the address details will be updated in the portal and a letter for approval of deletion of address will be issued in the SEZ Online portal. The applicant unit may then download the letter from the portal from the SEZ Online ID of the ‘Free Form - Change of Area (Deletion)’ request. 54. What are the steps to be followed by the unit after the deletion of address is approved in the SEZ Online portal? After the approval for deletion of address, the unit is required to take the following actions - a) If the unit has registered Lease Deed for the deleted premises, the unit is required to submit copy of cancelled Lease deed for the same within 30 days of approval in the SEZ Online portal. b) The unit shall immediately vacate the deleted premises and, in any case, shall not continue to occupy the deleted premises beyond 30 days of approval of the deletion request. Page 25 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 G. Importer-Exporter Code (IEC) 55. What is the Importer-Exporter Code (IEC)? An Importer-Exporter Code (IEC) is a unique business identification number issued by the Directorate General of Foreign Trade (DGFT). IEC is mandatory for every entity involved in import (or) export activities from India. 56. How can a unit obtain IEC code? To apply for an IEC, the Unit can directly visit the DGFT website by clicking the following link:https://www.dgft.gov.in/CP/?opt=iec-profile-management 57. Is an IEC code required for GIFT-IFSC units? Yes. Since the IFSC has been setup within the SEZ area, all the GIFT-IFSC units must apply to DGFT and obtain an IEC. 58. What are the steps to update the IEC in the SEZ portal? Once the IEC is issued by DGFT, the unit is required to file a ‘Free Form – IEC Application’ request in the SEZ Online portal and attach therewith the pdf copy of IEC Certificate. After approval of the Free Form request, the IEC is updated in the unit’s profile data by the office of Administrator (IFSCA). H. Procurement of Sand 59. What is the process for procurement of sand to GIFT IFSC for interior construction by the Unit? The unit willing to procure sand for interior construction purposes within the GIFT IFSC, is required to submit a ‘Free Form-Others’ request in the SEZ Online portal and upload a cover letter stating the requirement for sand for interior construction along with the quantity of sand required. Once the ‘Free Form-Others’ request is Page 26 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 approved in the portal, a letter for approval of procurement of sand is issued in the SEZ Online portal. The applicant unit may download the letter from the portal from the SEZ Online ID of the ‘Free Form-Others’ request filed by them. I. Broadbanding/Change of services 60. If a unit wishes to obtain IFSCA approval for additional services, other than those authorized in the LOA, what are the SEZ compliances required to be followed by the unit? If the unit wishes to diversify (i.e.) add more services to their LOA (or) change the services they provide, it is called Broadbanding of services. For example, a unit may have LOA for Aircraft Leasing services and may wish to provide Ship Leasing services also. On another instance, a unit may have LOA for FME (Non-Retail) and may want to become a FME (Retail). In both these cases, the unit has to get the Authorized Operations in their LOA amended, which is, as stated above, also referred to as Broadbanding. The unit must get the Authorized Operations in their LOA amended before obtaining the IFSCA Regulatory approval for such new/changed services. 61. What is the procedure to apply for amendment/Broadbanding of the Authorized Operations in the LOA? (i) The unit is required to submit a ‘Free Form-Broadbanding/Capacity Enhancement’ request in the SEZ Online portal and upload proof of submission of Regulatory application to IFSCA for the new/additional services. In the ‘Item Details’ tab of the said Free Form request, the unit must mention the amended set of services that will be provided by them, in the section named ‘Proposed for Renewed period’. (ii) Broadbanding applications sent over physical/email mode are not entertained for processing/approval. Page 27 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 62. What is procedure for approval of amendment/Broadbanding of Authorized Operations in the LOA? (i) Every application is examined by the office of Administrator (IFSCA) and placed before the UAC for consideration, by including the application in the Agenda for the UAC meeting. The unit is not required to appear before the UAC. (ii) Once the request is approved by the UAC, the approval is reflected in the Minutes of the UAC meeting. Then, the ‘Free Form-Broadbanding/Capacity Enhancement’ request is approved on the SEZ Online portal, and the amended LOA is generated in the SEZ Online portal itself. The amended LOA may be downloaded from the SEZ Online ID of the ‘Free Form- Broadbanding/Capacity Enhancement’ request. 63. After applying for amendment/Broadbanding of LOA Authorized Operations in the SEZ portal, how will the unit know if the application is complete? Once the unit has applied in the SEZ Online portal, any deficiencies/queries will be raised in the SEZ portal itself. The unit must login to the SEZ Online portal, access the ‘Free Form-Broadbanding/Capacity Enhancement’ request from the Inbox and find out about the deficiencies/discrepancies if any raised, from the Remarks History link of the request. Once the ‘Free Form-Broadbanding/Capacity Enhancement’ request is approved in the portal, the amended LOA is generated in the SEZ Online portal itself. The amended LOA may be downloaded from the SEZ Online ID of the ‘Free Form- Broadbanding/Capacity Enhancement’ request. 64. Should the unit submit the amendment/Broadbanding request in physical/email mode also? The Broadbanding of services request is required to be submitted only in the SEZ Online portal and there is no need to submit the application through physical/email mode also. Page 28 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 65. If the unit does not have access to the SEZ Online portal, how should the amendment/Broadbanding application be submitted? If the unit does not have access to the SEZ Online portal, they may retrieve access to the portal by contacting NSDL/NDML using the details available here (or) write to abhisheka@ndml.in/aweinashj@ndml.in. The office of Administrator (IFSCA) accepts applications only through the SEZ Online portal and not in physical/email mode. J. LOA Extension 66. What is the validity of the Letter of Approval (LOA) issued under the SEZ Act? As per Rule 19(4) of SEZ Rules, the Letter of Approval (LOA) remains valid for one year from the date of original issuance, within which the Unit must commence their business operations. 67. What happens to the LOA if the unit has not commenced business operations within one year? In case the Unit is unable to commence business operations before the expiry of its LOA, it is required to make a request for the extension of LOA to the Administrator (IFSCA). The Administrator (IFSCA) may grant an extension of validity of LOA for valid reasons to be recorded in writing. As per Rule 19 (4), the Extension can be granted for a further period of two years after the expiry of the original LOA. 68. How should a unit apply for LOA Extension? Unit must submit an ‘LOA Extension’ request on the SEZ Online portal only, with the following supporting documents merged in a single pdf. a) Cover letter detailing the reasons why the Unit was unable to commence operations before the expiration of the LOA and the steps taken so far to commence operations. b) Copy of the IFSCA Letter of Authorisation (or) Certificate of Registration/Recognition (or) approval in any other form. Page 29 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 c) Copy of the registered Lease Deed. Unit must submit the ‘LOA Extension’ request on the portal with all these documents, at least one month before the expiry of their LOA. LOA Extension applications sent over physical/email mode are not entertained for processing/approval. 69. What if the unit has not registered the Lease Deed at the time of applying for an LOA Extension? In the cover letter submitted along with the ‘LOA Extension’ request, the unit must explain the reasons in detail as to why they were unable to register the Lease Deed and request for condonation of delay in executing the Lease Deed. The request for condonation of delay is taken up in the Unit Approval Committee (UAC), as per Rule 18 (2) of SEZ Rules. The ‘LOA Extension’ request is processed only after the UAC decides whether the delay in submitting the registered Lease Deed is condoned (or) otherwise. 70. What if the LOA of the unit has already expired? Can the unit still obtain an LOA Extension? It is strongly advised that the Unit must submit the LOA Extension request on the portal with all the documents, at least one month before the expiry of the same. However, the unit can apply in the SEZ portal for LOA Extension even after expiry of LOA. In such cases, the unit must clearly mention in their cover letter the reasons for delay in filing of the LOA Extension request. Further, if the LOA expires and the unit does not take any steps to extend it, monetary penalties may follow. 71. What are the consequences of expiry of LOA? (i) As per Rule 19 (5), if the Unit has not commenced business within the validity period (or) the extended validity period of the LOA, then the LOA shall be deemed to have been lapsed with effect from the date on which its validity expired. This means that the entity is not an SEZ unit anymore once the LOA has expired. (ii) Under Rule 11 (5) of SEZ Rules, the validity of the Lease Deed and the lease rights to the premises shall cease to exist upon the expiry of the LOA. Page 30 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 (iii) Further, one of the necessary pre-conditions for an IFSC unit is being an SEZ unit with a valid LOA. An entity without a valid SEZ LOA cannot do any business, raise invoices, receive moneys, etc. in a SEZ, which will directly impact their IFSC operations. Further, if the LOA expires and the unit does not take any steps to extend it, monetary penalties may follow. 72. What happens if the unit has not been able to commence operations even after obtaining LOA Extension for two years from the Administrator (IFSCA)? (i) Beyond two years after the expiry of the original LOA, further extension of one year may be granted by the Administrator (IFSCA) in case the Administrator (IFSCA) is satisfied that two-thirds of activities for setting up the business has been completed by the unit. These activities include the compliances under SEZ Act such as executing Lease Deed, etc. and also the milestones towards the IFSC operations such as securing capital, executing Contribution agreements, executing Lease agreements for aircrafts/vessels, etc. as the case maybe. (ii) In case the unit has not shown completion of various activities for setting up the business, then the power to grant further extension of LOA rests with the Board of Approval (BoA) setup by the Ministry of Commerce, GoI. The Board of Approval may, upon being satisfied, grant further extension for a further period not exceeding one year, at a time. 73. What is the procedure for obtaining LOA Extension beyond two years from the expiry of original LOA? The unit must submit an ‘LOA Extension’ request on the SEZ Online portal with the following supporting documents merged in a single pdf. a) Cover Letter: The cover letter shall highlight the initiatives taken by the unit to commence business operations, including detailed reasons as to why the unit was unable to commence the operations so far. The Cover letter shall highlight the steps taken by the Unit to commence business operations. b) Form-F1: A copy of the duly filled Form-F1 [Annexure-D] must be submitted as part of the request. c) Present Progress: The status of progress achieved by the unit on both SEZ compliances and IFSC operations. Page 31 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 d) Lease Deed: Copy of registered Lease Deed e) IFSCA Approval: Copy of the IFSCA Letter of Authorisation (or) Certificate of Registration/Recognition (or) approval in any other form f) Additional Documents: Any other documents to highlight the steps taken by the Unit to commence business operations such as NOCs, Agreements, invoices, bank statements, etc. Such requests for extension of LOA beyond two years after the expiry of original LOA are examined by the office of Administrator (IFSCA) and forwarded to the Board of consideration. 74. After applying for LOA Extension in the SEZ portal, how will the unit know if the application is complete? Once the unit has applied in the SEZ Online portal, any deficiencies/queries will be raised in the SEZ portal itself. The unit must login to the SEZ Online portal, access the ‘LOA Extension’ request from the Inbox and find out about the deficiencies/queries if any raised, from the Remarks History link of the request. Once the ‘LOA Extension’ request is approved in the portal, the LOA dates are automatically updated in the portal and a letter for approval of LOA Extension is issued in the portal. The applicant unit may download the letter from the portal from the SEZ Online ID of the ‘LOA Extension’ request filed by them. 75. Should the unit submit the LOA Extension application in physical/email mode also? No, the ‘LOA Extension’ request must be submitted only in the SEZ Online portal and there is no need to submit the application through physical/email mode also. The LOA Extension application sent over physical/email mode are not entertained for processing/approval. 76. If the unit does not have access to the SEZ Online portal, how should the LOA Extension application be submitted? If the unit does not have access to the SEZ Online portal, they may retrieve access to the portal by contacting NSDL/NDML using the details available here (or) write to Page 32 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 abhisheka@ndml.in/aweinashj@ndml.in. The office of Administrator (IFSCA) accepts applications only through the SEZ Online portal and not in physical/email mode. K. Commencement of Operations 77. What is the significance of Commencement under the SEZ Act? As per Rule 19 (4) and 19 (6) of the SEZ Rules, the LOA shall be valid for one year from the date of its issuance within which period the Unit must commence service, for the purposes of IFSC operations, and intimate the date of commencement to the Administrator (IFSCA). The Letter of Approval is valid for five years from the date of commencement of service. 78. What is considered as Commencement of service activity under the SEZ provisions? Commencement of service activity is as such not defined under the SEZ Act/Rules. The issuance of first invoice is generally considered as commencement of service activity. For certain IFSCA business verticals such as Funds, Broker-Dealers, etc. invoice is not being issued in the normal course of business and in such cases, commencement is decided based on the specific nature of the business. 79. Is the validity of the LOA automatically extended to 05 years from the date of commencement once the unit submits an intimation to the Administrator (IFSCA)? No, the validity of the LOA is considered to be extended only after the office of Administrator (IFSCA) takes on record the commencement of service activity in the SEZ Online portal. Mere submission of intimation does not extend the validity of the LOA. Page 33 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 80. How should a unit intimate the Commencement of service activity? Unit must submit a ‘Free Form-Unit- Intimation of DCP’ request on the SEZ Online portal with the following supporting documents merged in a single pdf. a) Documents showing proof of Commencement b) Copy of the IFSCA Letter of Authorisation (or) Certificate of Registration/Recognition (or) approval in any other form. c) Copy of the registered Lease Deed. The intimation of commencement sent over physical/email mode is not entertained for processing/approval. 81. Is it mandatory to generate SERF ID and include the same in the ‘Free Form-Unit- Intimation of DCP’ request that is filed on the SEZ Online portal? No, the ‘Free Form-Unit- Intimation of DCP’ request can be submitted without generating a SERF ID. There are many business verticals in IFSCA that do not involve the issuance of an invoice, such as Funds, Broker-Dealers, etc. In those business verticals where there is no invoice issued for commencement; SERF ID is not mandatory. 82. What if the unit has not registered the Lease Deed at the time of intimating the Commencement of service activity? The intimation of Commencement is not taken on record without the registration of Lease Deed. The unit must submit the intimation of Commencement in the SEZ Online portal along with a copy of the registered Lease Deed. 83. What if the LOA of the unit has expired already? Can the unit still raise an invoice and submit intimation of commencement? The unit must not raise invoices and receive payments against invoices when their LOA is invalid/expired. The unit must apply for LOA Extension at least one month Page 34 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 before expiry of their LOA, obtain approval for LOA Extension and then proceed with the issuance of invoices. 84. The unit has commenced operations before the expiry of LOA and submitted intimation of commencement in the SEZ Online portal. However, before the intimation is taken on record, the LOA of the unit has expired. Should the unit apply for LOA Extension separately in the SEZ portal? No, if the unit has submitted the intimation of commencement with the proper documents before the expiry of LOA, then there is no need to apply for LOA Extension separately. Once the commencement is taken on record, the LOA dates are automatically updated in the SEZ Online portal. 85. The unit has commenced operations before the expiry of LOA. However, before submitting the intimation of commencement in the SEZ Online portal, the LOA of the unit has expired. Should the unit apply for LOA Extension separately in the SEZ portal? Yes, the unit must obtain LOA Extension by applying on the SEZ Online portal. The intimation of Commencement submitted after the expiry of LOA is not considered for processing/approval. 86. What documents are considered as proof of Commencement for an IFSC unit? (i) Under the SEZ Act/Rules, commencement of service has not been defined. However, in normal course of business, raising of first invoice by a unit (for which payment is received) is considered as commencement. It may be mentioned that there are different business verticals regulated by IFSCA which do not issue invoices, such as Funds, etc. For all the business verticals regulated by IFSCA, the indicative list of documents that are considered as proof of Commencement along with the relevant Date of Commencement are given in Annexure-C. Page 35 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 (ii) It may be noted that these documents are listed only as a general guideline and there could be use cases where additional/different set of documents may be required to determine the commencement. 87. If the unit has obtained letter approving the Commencement in physical form but the same is not updated in the SEZ Online portal. How should the unit get the dates updated in the SEZ Online portal? Unit must submit a ‘Free Form-Unit- Intimation of DCP’ request on the SEZ Online portal and upload the physical letter issued as proof of Commencement so that the Commencement may be taken on record in the SEZ Online portal. 88. After submitting the intimation of commencement in the SEZ portal, how will the unit know if the application is complete? Once the unit has submitted the intimation of commencement in the SEZ Online portal, any deficiencies/queries will be raised in the SEZ portal itself. The unit must login to the SEZ Online portal, access the ‘Free Form-Unit- Intimation of DCP’ request from the Inbox and find out about the deficiencies/queries if any raised, from the Remarks History link of the request. Once the Commencement has been taken note of in the portal, the LOA dates are automatically updated in the portal and a letter for approval of the Commencement is issued in the portal. The applicant unit may download the letter from the portal from the SEZ Online ID of the ‘Free Form-Unit- Intimation of DCP’ request filed by them. 89. Should the unit submit the intimation of Commencement in physical/email mode also? No, the intimation of Commencement must be submitted only in the SEZ Online portal and there is no need to submit the application through physical/email mode. The intimation of commencement sent over physical/email mode is not entertained for processing/approval. Page 36 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 90. If the unit does not have access to the SEZ Online portal, how should the intimation of Commencement be submitted? If the unit does not have access to the SEZ Online portal, they may retrieve access to the portal by contacting NSDL/NDML using the details available here (or) write to abhisheka@ndml.in/aweinashj@ndml.in. The office of Administrator (IFSCA) accepts applications only through the SEZ Online portal and not in physical/email mode. L. Reporting – MPR, SERF, APR Monthly Performance Report (MPR) 91. What is the Monthly Performance Report (MPR)? MPR is a snapshot of the units’ data such as Employment, Investments, etc. for each month. 92. How should the MPR be submitted? The MPR must be submitted in the SEZ Online portal under the tab ‘Prepare Monthly Reports’ found in the unit login. 93. Should all the units submit the MPR? All IFSC units regulated by IFSCA who have obtained the LOA must submit the MPR every month without fail, in the SEZ Online portal. 94. What is the deadline for submission of MPR? The office of Administrator (IFSCA) has issued PUBLIC NOTICE No. 03/2024- 25 dated 23.12.2024 in this regard which may be found here. Page 37 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 95. A unit has missed out on submitting the MPR for a particular month before the deadline. Can they submit it later? Yes, the SEZ Online portal allows for submission/updation of MPR for the past 03 months. However, it is strongly advised that the units must submit the MPR every month without fail in the SEZ Online portal. 96. Should the unit submit the MPR in physical/email mode also? No, the MPR must be submitted in the SEZ Online portal only and there is no need to submit the MPR through physical/email mode also. 97. If the unit does not have access to the SEZ Online portal, how should the MPR be submitted? If the unit does not have access to the SEZ Online portal, they may retrieve access to the portal by contacting NSDL/NDML using the details available here (or) write to abhisheka@ndml.in/aweinashj@ndml.in. The office of Administrator (IFSCA) accepts MPR only through the SEZ Online portal and not in physical/email mode. Service Exports Reporting Form (SERF) 98. What is the Service Exports Reporting Form (SERF)? SERF is the summary of details of invoices generated/issued by the unit in a particular month. 99. How should the SERF be submitted? The SERF must be submitted in the SEZ Online portal under the tab ‘Service Exports Reporting Form’ found in the unit login. Page 38 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 100. Should all the units submit the SERF? All IFSC units regulated by IFSCA whose intimation of commencement has been taken on record in the SEZ Online portal by Administrator (IFSCA) must submit the SERF every month without fail in the SEZ Online portal. 101. What is the deadline for submission of SERF? The office of Administrator (IFSCA) has issued PUBLIC NOTICE No. 03/2024- 25 dated 23.12.2024 in this regard which may be found here. 102. A unit has submitted intimation of commencement in the SEZ Online portal and the same is under process for being taken on record. When should the unit file the SERF? (i) The unit must file SERF for all the months, starting from the month of commencement, in the SEZ Online portal immediately after the intimation of commencement has been taken on record in the SEZ Online portal by the Administrator (IFSCA). (ii) For example, if the unit generates its first invoice on 15.07.2024 and intimates the commencement on the SEZ Online portal on 01.08.2024, which is taken on record by the Administrator (IFSCA) on 15.09.2024, the unit must file the SERF report for July and August immediately after the intimation has been taken on record by the Administrator (IFSCA) and letter for the same is issued in the SEZ Online portal. 103. What are the consequences of not submitting the SERF? Failure to submit the SERF may attract monetary penalties under law. 104. A unit has missed out on submitting the SERF for a particular month before the deadline. Can they submit it later? Yes, the SEZ Online portal allows for submission/updation of SERF for the past months also. However, it is strongly advised that the units must submit the SERF every month without fail in the SEZ Online portal. Page 39 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 105. Should the unit submit the SERF in physical/email mode also? No, the SERF must be submitted in the SEZ Online portal only and there is no need to submit the SERF through physical/email mode also. 106. If the unit does not have access to the SEZ Online portal, how should the SERF be submitted? If the unit does not have access to the SEZ Online portal, they may retrieve access to the portal by contacting NSDL/NDML using the details available here (or) write to abhisheka@ndml.in/aweinashj@ndml.in. The office of Administrator (IFSCA) accepts SERF only through the SEZ Online portal and not in physical/email mode. Annual Performance Report (APR) 107. What is the Annual Performance Report (APR)? As per Rule 22(3) of SEZ Rules, the unit must submit Annual Performance Report (APR) in the Form-I to the Administrator (IFSCA). 108. What is the format of the APR? The APR is to be prepared in Form-I which is part of the SEZ Rules. The format is also attached herein as Annexure-B. It is to be noted that the information given in the formats for Annual Performance Reports should be authenticated by the authorised signatory of the unit and duly certified by an independent Chartered Accountant (or) Cost Accountant. 109. How should the APR be submitted? The APR must be submitted by filing a ‘APR’ request in the SEZ Online portal and attaching the pdf copy of the certified APR with the said request. Page 40 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 110. Should all the units submit the APR? Yes, all the IFSC units whose intimation of commencement has been taken on record in the SEZ Online portal, must submit the APR for every Financial Year, including that of the commencement, without fail in the SEZ Online portal. 111. What is the deadline for submission of APR? As per Condition 7 of Form-H of SEZ Rules, after the commencement of operations, the unit must submit APR to the Administrator (IFSCA) and the Specified Officer within 180 days following the close of Financial Year, in Form-I. 112. What are the consequences of not submitting the APR? Failure to submit the SERF may attract monetary penalties under law. 113. A unit has missed out on submitting the APR for a particular year before the deadline. Can they submit it later? Yes, the SEZ Online portal allows for submission of APR for the past F.Y. also. However, it is strongly advised that the units must submit the APR for every F.Y. within the stipulated deadline without fail in the SEZ Online portal. 114. Should the unit submit the APR in physical/email mode also? No, the APR is required to be submitted in the SEZ Online portal only and there is no need to submit the APR through physical/email mode. 115. If the unit does not have access to the SEZ Online portal, how should the APR be submitted? If the unit does not have access to the SEZ Online portal, they may retrieve access to the portal by contacting NSDL/NDML using the details available here (or) write to abhisheka@ndml.in/aweinashj@ndml.in. The office of Administrator (IFSCA) accepts APR only through the SEZ Online portal and not in physical/email mode. Page 41 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 M. Intimations under Instruction 109 116. What is Instruction 109 dated 18.10.2021 issued by the Ministry of Commerce and what are the compliances required to be done by the units under this Instruction? Instruction 109 deals with the guidelines regarding reorganization including change of name, change of shareholding pattern, business transfer arrangements, court approved mergers and demergers, change of constitution, change of Directors, etc. of SEZ units. As per the Instruction, these changes must be approved by the UAC. 117. What is the procedure to intimate the compliances under Instruction 109? The unit must submit the request in the SEZ Online portal under the tab ‘Factsheet and UAC Applications’ and upload the relevant documents pertaining to the intimation submitted by them. For example, in case of Change of Name, the unit should submit the revised Certificate of Incorporation issued by the Ministry of Corporate Affairs. 118. What is procedure for approval of compliances under Instruction 109? Once the intimation is filed, the same is examined by the office of Administrator (IFSCA) and placed before the UAC for approval, by including the application in the Agenda for the UAC meeting. The unit is not required to appear before the UAC. Once the request is approved by the UAC, the approval is reflected in the Minutes of the UAC Meeting. Then, the corresponding request will be approved on the SEZ Online portal. In case of Change of Name, a separate letter is also issued to the unit by email. 119. Should the unit intimate the compliances under Instruction 109 in physical/email mode also? No, the intimation of compliances under Instruction 109 must be submitted only in the SEZ Online portal and there is no need to submit the application through physical/email mode. Page 42 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 120. If the unit does not have access to the SEZ Online portal, how should the intimation of compliances under Instruction 109 be submitted? If the unit does not have access to the SEZ Online portal, they may retrieve access to the portal by contacting NSDL/NDML using the details available here (or) write to abhisheka@ndml.in/aweinashj@ndml.in. The office of Administrator (IFSCA) accepts applications only through the SEZ Online portal and not in physical/email mode. N. LOA Renewal 121. What is the meaning of LOA Renewal under the SEZ Act? The LOA renewal of the Unit is governed as per Rule 19(6), 19(6A) and 19(6B) of the SEZ Rules, 2006. Upon commencement of operations, the LOA of the unit becomes valid for 05 years from the date of commencement. After completion of this 05-year period, the LOA is required to be renewed by the unit for continuing their operations as an SEZ unit every 05 years. 122. How should a unit submit the application for LOA Renewal? Unit must submit ‘LOA Renewal’ request on the SEZ Online portal with the following supporting documents merged in a single pdf. a) A copy of Form-F1, duly completed and signed, as per Rule 19(6A). b) A copy of the Annual Performance Reports (APRs) for the last 05 completed Financial Years filed in the SEZ Online portal. The format of Form-F1 is also attached herein as Annexure-D. LOA Renewal applications sent over physical/email mode is not entertained for processing/approval. Page 43 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 123. When should a unit submit the LOA Renewal application? As per Rule 19(6A), the unit must apply for LOA Renewal before two months from the date of expiry of the Letter of Approval. In case an application for LOA Renewal is submitted after the said period of two months, the unit must submit a covering letter giving detailed justification for the delay along with the LOA Renewal request in the SEZ Online portal. Such delays and violations of the SEZ Rules may also attract monetary penalties. 124. What if the LOA of the unit has already expired? Can the unit still submit the application for LOA Renewal? Yes. As per Rule 19(6A), the unit must apply for LOA Renewal before two months from the date of expiry of the Letter of Approval. In case an application for LOA Renewal is submitted after the expiry of LOA, the unit must submit a covering letter giving detailed justification for the delay along with the LOA Renewal request in the SEZ Online portal. Further, if the LOA expires and the unit does not take any steps to renew it, monetary penalties may follow. 125. What are the criteria for approving the LOA Renewal? As per Rule 19(6B) of the SEZ Rules, the process of LOA Renewal shall take into account the status of the following criteria, namely, a) Export performance of the Unit in the completed block of 05 years. b) Employment generated. c) Instance of violation of applicable statutes related to the functioning of the Unit. d) Cases of default, if any, of statutory payments. e) Undertaking of any activity not sanctioned (or) approved by the Development Commissioner. 126. Will the LOA be renewed if the unit has violated any of the above criteria? Rule 19(6A) of the SEZ Rules provides for approving LOA Renewal for a further 05 years (or) for a shorter period. Any violations of the above criteria may attract Page 44 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 monetary penalties along with LOA Renewal for a period shorter than 05 years period (or) even cancellation of LOA under Section 16 of SEZ Act. 127. After submitting the ‘LOA Renewal’ request in the SEZ portal, how will the unit know if the application is complete? Once the unit has submitted the ‘LOA Renewal’ request in the SEZ Online portal, any deficiencies/queries will be raised in the SEZ portal itself. The unit shall login to the SEZ Online portal, access the ‘LOA Renewal’ request from the Inbox and find out about the deficiencies/queries if any raised, from the Remarks History link of the request. Once the ‘LOA Renewal’ request has been approved in the portal, the LOA dates shall be automatically updated in the portal and Form-F2, will be issued in the SEZ Online portal itself. The applicant unit may download the Form-F2 from the portal from the SEZ Online ID of the ‘LOA Renewal’ request filed by them. 128. Should the unit submit the ‘LOA Renewal’ request in physical/email mode also? The ‘LOA Renewal’ request must be submitted only in the SEZ Online portal and there is no need to submit the application through physical/email mode. The LOA Renewal application sent over physical/email mode shall not be entertained for processing/approval. 129. If the unit does not have access to the SEZ Online portal, how should the LOA Renewal request be submitted? If the unit does not have access to the SEZ Online portal, they may retrieve access to the portal by contacting NSDL/NDML using the details available here (or) write to abhisheka@ndml.in/aweinashj@ndml.in. The office of Administrator (IFSCA) accepts applications only through the SEZ Online portal and not in physical/email mode. Page 45 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 O. Exit 130. What is the further course of action available under SEZ Rules for a unit that does not wish to continue their operations in IFSC? If a unit does not wish to continue operations as an IFSC unit; under the SEZ Rules, the unit must apply for Exit. The unit cannot just let their LOA expire but has to obtain a proper approval for Exit under Rule 74 of SEZ Rules. 131. What are the steps to be followed by a unit if they wish to surrender the LOA (or) do not wish to start/continue operations in their IFSC unit (or) exit from SEZ? The unit must apply for Exit as provided under Rule 74 of SEZ Rules. 132. What are the documents to be submitted by the unit while applying for Exit under Rule 74 of SEZ Rules? The Unit must submit a cover letter requesting exit from GIFT-SEZ, along with a duly executed Form-L which is provided in SEZ Rules. The format is also attached herein as Annexure-E. Both these documents are required to be submitted in physical form to the office of Administrator (IFSCA). The Unit shall also submit a ‘Free Form - Final Exit from SEZ Scheme’ request on the SEZ Online portal and attach these documents in the said request as supporting documents. 133. What is the process of approval of Exit under Rule 74 of SEZ Rules? (i) Upon receiving the cover letter and Form-L in physical form, the office of Administrator (IFSCA) seeks no dues/no objection letters for the exit of the unit from the Specified Officer GIFT-SEZ, the Developer M/s. GIFT Company Limited, the Co-Developer concerned, and the IFSCA Regulatory team. The exit under SEZ Rules is approved only after the unit ceases to be regulated by IFSCA. Page 46 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 (ii) On receipt of the no dues/no objection letters, the office of Administrator (IFSCA) shall process the application and, if satisfied, approve the exit. A letter approving final exit is sent to the unit by email and the “Free Form - Final Exit from SEZ Scheme” request filed in the SEZ Online portal is also approved so that the exit of the unit is reflected in the SEZ Online portal. 134. What are the actions to be taken by the unit after exit? The unit must cease all operations in the IFSC/SEZ, and they effectively cease to be an IFSC unit once the exit approval is issued. Under Rule 11 (5) of SEZ Rules, the validity of the Lease Deed and the lease rights to the premises shall cease to exist upon the expiry of the LOA. Thus, the Lease Deed executed by the unit shall cease to be valid on approval of the exit. The unit must also exit the premises on which the LOA was issued and must initiate proceedings for cancellation of the Lease Deed. 135. A unit had obtained SEZ LOA and IFSCA approval but is unable to (or) does not commence their business operations. It surrenders the IFSCA approval and obtains Exit from SEZ. Subsequently, it wishes to obtain IFSCA Licence under same (or) different regulations after first exit. For this, the unit enters into a mutual understanding with the Co-Developer to continue to pay rent to their premises even after Exit, and the Co-Developer has agreed to issue PLOA in the same address to the unit for new activity. In this scenario, can a unit continue to occupy their premises even after the Exit is approved so that they may obtain new LOA in the same premises after some time? No, the unit must vacate the premises and not continue to occupy the premises after the exit approval is issued. Under Rule 11 (5) of SEZ Rules, the validity of the Lease Deed and the lease rights to the premises shall cease to exist upon the expiry of the LOA. Hence, the Lease Deed executed by the unit before exit shall cease to be valid on approval of the exit. Page 47 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 136. Can a unit continue to occupy their premises even after the Exit Approval, since they wish to obtain IFSCA Licence in the near future and have already registered a long-term Lease Deed for the premises? No, the unit must vacate the premises and not continue to occupy the premises after the exit approval is issued. Under Rule 11 (5) of SEZ Rules, the validity of the Lease Deed and the lease rights to the premises shall stand voided upon the expiry of the LOA. Hence, the Lease Deed executed by the unit before exit shall cease to be valid on approval of the exit. P. Miscellaneous 137. What are the steps required to be followed after obtaining LOA? The unit is required to make the necessary payments for SEZ Online portal to activate their SEZ portal access, including any AMC fees that is required. The unit is also required to apply to the office of DC, GIFT-SEZ for SEZ ID cards for their employees. 138. If there are any issues with the SEZ Online portal, how can the unit resolve them? The unit may contact NSDL/NDML using the details available here (or) write to abhisheka@ndml.in/aweinashj@ndml.in. 139. What are the common reasons due to which a unit may lose access to the SEZ Online portal? A unit may lose access to the SEZ Online portal if it- a) Does not update their GSTIN in the SEZ portal b) Does not pay their registration fees/AMC fees for access to SEZ Online portal Page 48 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 For such issues, the unit may contact NSDL/NDML using the details available here (or) write to abhisheka@ndml.in/aweinashj@ndml.in. 140. What are some common issues to be noted by the unit while using SEZ Online portal? The units must a) Timely check their SEZ portal Inbox to find the updated status of the requests filed by them b) The SEZ portal allows for submission of only one pdf. Hence, while submitting any request, the unit shall merge all their new and old submissions into a single pdf and submit on the SEZ Online portal. c) The unit has multiple levels of user – Maker, Checker and Approver – to ensure data integrity at the time of submission by the unit. It has been observed many times that the unit sends a request from their Maker ID to their Approver ID and assume that the request has been submitted to the Administrator (IFSCA). Any request filed by the unit must be finally submitted from their Approver ID so that the same is reflected in the menu of Administrator (IFSCA) for further processing. 141. While submitting any application in the SEZ Online portal, the unit receives an error message stating ‘Could not establish elock connection.’ How should this error be resolved? The unit must download and install the ‘E-Lock Super Signer tool’ under the ‘Manual and File Format’ section available here in the SEZ Online website. Once installed, the unit must submit the application in the SEZ Online portal whilst running the E-Lock software for successful submission of the application. Page 49 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 Q. Registration-Cum-Membership Certificate (RCMC) 142. What is the Registration-Cum-Membership Certificate (RCMC)? As per Rule 2 (1) (zg) of SEZ Rules, the Registration-cum-Membership Certificate (RCMC) means the membership certificate issued by Export Promotion Council for Export Oriented Units and Special Economic Zones. 143. How can a unit obtain RCMC certificate? To apply for an RCMC, the Unit can directly visit the DGFT website by clicking the following link: https://www.dgft.gov.in/CP/?opt=e-rcmc 144. Is an RCMC certificate required for GIFT-IFSC units? Yes. As per Rule 22 (1) (v) of SEZ Rules, an SEZ Unit must obtain a RCMC for availing exemptions, drawbacks and concessions. 145. What are the steps to update the RCMC certificate in the SEZ portal? The list of units who have obtained RCMC is shared by EPCES periodically with NSDL and the details are updated in the SEZ Online portal by NSDL from the backend. The office of Administrator (IFSCA) is not involved in the process of issuing RCMC (or) updating the same in the SEZ Online portal. The unit may contact NSDL/NDML using the details available here (or) write to abhisheka@ndml.in/aweinashj@ndml.in regarding any issues in updating their RCMC details in the SEZ Online portal. Page 50 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 R. Annexure - A – Format of BLUT [Form-H] Page 51 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 Page 52 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 Page 53 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 Page 54 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 S. Annexure - B – Format of APR [Form-I] Page 55 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 Page 56 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 Page 57 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 Page 58 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 T. Annexure - C – Indicative List of Documents for Proof of Commencement S. Business Date of Documents showing proof of Commencement No. Vertical Commencement 1. Management Fees Invoice raised to the Fund Date of 2. Bank statement evidencing payment against the Management Fees 1. Fund Management invoice Invoice raised to Entity 3. IFSCA Registration Certificate the Fund 4. Registered Lease Deed of FME 1. Contribution Agreement (with proper date) signed with Investor Date of 2. Bank Statement showing receipt of investment Contribution 2. Fund based on the said Contribution Agreement Agreement signed 3. Letter of Acknowledgement issued by IFSCA with Investor 4. Registered Lease Deed of Fund 1. Letter from the Exchange showing proof of First Trade executed by the Broker Dealer 2. In case of Global Access – Agreement signed with the foreign Securities broker and letter from 3. Broker Dealer Date of First Trade the foreign Securities broker communicating the Date of First Trade 3. IFSCA Registration Certificate 4. Registered Lease Deed Page 59 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 1. Lease Agreement for leasing-in the aircraft 2. Invoice raised by Lessor to IFSC unit for leasing- in the aircraft 3. Bill of Entry filed by IFSC unit for import of the Date of Bill of Aircraft from Lessor through any designated port Entry filed by 4. DGCA NOC for the aircraft IFSC unit for Aircraft 4. 5. Lease Agreement for leasing-out the aircraft Leasing import of the 6. Invoice raised by IFSC unit to Lessee for leasing- Aircraft from out the aircraft Lessor 7. Bill of Entry/Shipping Bill filed by IFSC unit/Lessee for Leasing-out of the Aircraft 8. IFSCA Registration Certificate 9. Registered Lease Deed 1. Lease Agreement for leasing-in the ship 2. Invoice raised by Lessor to IFSC unit for leasing- in the ship Date of Bill of 3. Bill of Entry filed by IFSC unit for import of the Entry filed by Ship from Lessor at any designated port IFSC unit for 4. Lease Agreement for leasing-out the ship 5. Ship Leasing import of the Ship 5. Invoice raised by IFSC unit to Lessee for leasing- from Lessor out the ship 6. Bill of Entry/Shipping Bill filed by IFSC unit/Lessee for leasing-out the ship 7. IFSCA Registration Certificate 8. Registered Lease Deed 1. Proof of first transaction – disbursal of loan, account opening, etc. 2. Agreement signed with client, if any, for Date of first 6. IBU disbursal of loan transaction 3. IFSCA Registration Certificate 4. Registered Lease Deed 1. First Invoice raised by the unit to their client Date of first 7. IIO 2. Policy Certificate/Document issued to their invoice client Page 60 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 3. Bank statement evidencing payment against the invoice 4. IFSCA Registration Certificate 5. Registered Lease Deed 1. First Invoice raised by the unit to their client 2. Service Agreement signed with their client 3. Bank statement evidencing payment against the Date of first Ancillary/BA 8. TF Unit invoice invoice 4. IFSCA Registration Certificate 5. Registered Lease Deed 1. First Invoice raised by the unit to their client 2. Agreement signed with their client 3. Bank statement evidencing payment against the Date of first FinTech/Tech 9. invoice Fin Entity invoice 4. IFSCA Letter of Authorization as FinTech/TechFin Entity 5. Registered Lease Deed 1. First Invoice raised by the unit to their parent office 2. Bank statement evidencing payment against the Global invoice Date of first Administrativ 10. 3. Service Level Agreement signed with the parent invoice e Office office 4. IFSCA Registration Certificate 5. Registered Lease Deed 1. First Invoice raised to student for admission/receipt of fees 2. Offer Letter/Admission Letter issued to the Date of first 11. University student for said fees invoice raised to 3. Bank statement evidencing payment of fees by the student the student 4. Registered Lease Deed Page 61 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 1. Disbursement Advice issued by the Unit to their client 2. SWIFT Transaction regarding the above-stated Date of disbursement made to their client Factoring and 12. Disbursement Forfaiting 3. Bank statement showing receipt of money from Advice the other party 4. IFSCA Registration Certificate 5. Registered Lease Deed 1. Facility Agreement signed with Borrower 2. Bank statement evidencing disbursal against the Global Date of 13. Treasury Facility Agreement Disbursement Centre 3. IFSCA Registration Certificate 4. Registered Lease Deed Page 62 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 U. Annexure - D – Format of Form-F1 Page 63 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 Page 64 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 V. Annexure - E – Format of Form-L Page 65 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 Page 66 of 67SEZ Compliance FAQ Booklet (v 1.1), June 2025 March 2025 2nd and 3rd floor, Savvy Pragya, Gujarat International Finance Tec-City, Scan QR code to Gujarat 382355 Download Page 67 of 67 www.ifsca.gov.in

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