The Central Government has notified the Special Economic Zones (Amendment) Rules, 2026 vide Notification No. G.S.R. 114(E) (F. No. K-43014/3/2024-SEZ) dated 3rd February, 2026, published in the Gazette of India (Extraordinary), in exercise of powers conferred under Section 55 of the Special Economic Zones Act, 2005.
The amendment introduces a significant procedural reform for units being set up in International Financial Services Centres (IFSCs) within Special Economic Zones (SEZs).
Key Highlights of the Amendment
- Insertion of Sub-rule 19(1A): A new sub-rule 19(1A) has been inserted in the Special Economic Zones Rules, 2006. As per the amendment, the Administrator (IFSCA) shall issue a Letter of Approval (LoA) in “Form GA” for setting up a unit in an International Financial Services Centre.
- Introduction of New “Form GA”: A standardized format titled “Letter of Approval – Form GA” has been inserted after Form G in the principal rules.
- The Form GA will be issued by the Office of the Administrator (IFSCA), International Financial Services Centres Authority (IFSCA), located at GIFT Multi-Services SEZ, Gujarat.
- Validity and Operational Conditions:
- The Letter of Approval will be valid for one year from the date of issue for implementation of the project.
- Units must commence operations within this period or within an extended period, if granted.
- The approval remains valid for five years from the date of commencement of operations.
- Units are required to export financial services in accordance with the SEZ Act, 2005 and SEZ Rules, 2006.
- Execution of a Bond-cum-Legal Undertaking is mandatory.
- All statutory and regulatory approvals from the concerned authorities, including IFSCA, must be obtained before operations commence.
- Compliance Requirements:
- Units must comply with provisions of the SEZ Act, 2005 and SEZ Rules, 2006.
- Pollution control norms and other statutory requirements must be adhered to.
- Acceptance of the LoA terms and conditions must be communicated within 45 days.
- Non-compliance may result in cancellation of approval.
Objective of the Amendment
The amendment aims to provide a dedicated and streamlined approval mechanism for units in International Financial Services Centres within SEZs, ensuring regulatory clarity, procedural uniformity, and enhanced ease of doing business in India’s IFSC ecosystem.
The Special Economic Zones Rules, 2006 were last amended on 3rd June, 2025. With this latest amendment, the Government continues its efforts to strengthen the institutional framework governing SEZs and promote India as a global hub for international financial services.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/02/Special-Economic-Zones-Rules-2026.pdf
