Procedure for Setting up an International Finance Service Centre (IFSC) unit in SEZ - No. D.12/25/2009-SEZ - Special Economic Zone

No. D.12/25/2009-SEZ Government of India Ministry of Commerce Industry Department of Commerce (SEZ Division) Udyog Bhawan, New Delhi Dated: 8 April, 2015 To: 1. Chief Secretaries of all States/UTs 2. All Development Commissioners of SEZs 3. Department of Revenue (CBDT/CBEC), Govt. of India 4. DG, EPCES Subject: Procedure for Setting up an International Finance Service Centre (IFSC) unit in SEZs- regarding. Sir/Madam. Please refer to the Notification issued vide S.O.968 (E) dated 8-4-2015 under Section 18(2) of the Special Economic Zones Act, 2005 , which may be viewed at http://sezindia.nic.in/laterst-updaets.asp [SEZ Gazette Notification, 2015 Gazette copy]. In order to facilitate setting up of an IFSC Unit in SEZ following procedures have been formulated: 2. Entrepreneurs willing to set up a unit in IFSC are required to submit application to the concerned Development Commissioner in the format prescribed at Form-F of the SEZ Rules, 2006 , (hereinafter referred to as the Rules) in five copies, with a copy to the Developer, along with the following documents:- i. A Demand Draft amounting to ₹ 5,000/- in favour of Pay Accounts ii. Detailed Project Report giving therein promoter s bio-data, services iii. Copy of Memorandum Articles of Association in case of Private Limited iv. Copy of Registered Partnership Deed in case of partnership firm/Limited v. Copies of Passport, PAN and last three years Income Tax Returns in Officer, Ministry of Commerce Industry, Department of Commerce payable at New Delhi . proposed to be undertaken, economic feasibility, cost of the project, means of financing etc. or Public Limited Company. Liability Partnership.respect of Directors /Partners/ Proprietor, as the case may be. vi. Copies of PAN alongwith last three years audited Balance Sheets in vii. Copy of Provisional Offer of Allotment of space from the developer. viii. Any other approval as may be required from the State Government, respect of existing business, if any.sectoral regulators (RBI, SEBI, IRDA, etc.) or considered necessary by the Development Commissioner as per SEZ Act, 2005 (herein after referred to as the Act) or under the Rules. 3. The applicants may simultaneously apply to the concerned Development Commissioners, SEZ and others sectoral regulators as applicable, for necessary approvals. However the Units can commence operations only after receipt of permissions from the concerned sectoral regulators. 4. The said application shall be considered by the designated Approval Committee notified by the Department of Commerce, under Section 13 of the Act . Where such Approval Committee is yet to be constituted and notified, the Development Commissioner of the SEZ is empowered to carry out all the functions and exercise all the powers of the Approval Committee. The Approval Committee shall exercise all powers and functions as per Section 14 of the Act . 5. The Approval Committee may approve or reject a proposal placed before it within fifteen days of its receipt, unless it requires approval of BoA, in which case the DC shall forward the same with his observations to BoA for necessary action. 6. On approval of a proposal, Development Commissioner shall issue a Letter of Approval (LOA) in Form-G, for setting up of the unit in SEZ. The LOA shall remain valid initially for one year for the purpose of implementation, which may be extended further by the Development Commissioner for valid reasons for a further period not exceeding two years. After receiving of LOA, the unit is required to submit its acceptance of terms conditions of LOA to the Development Commissioner. 7. The unit shall execute a Bond-Cum-LUT as per Form-H which shall be jointly accepted by Development Commissioner and Specified Officer. The Form-H on ₹ 100/- Stamp paper bought and notarized from the State concerned shall be submitted to the Development Commissioner alongwith following documents :- (i) Board Resolution / Authority in favour of Authorised Signatory. (ii) Common seal in case of company is to be affixed. (iii) Signature of Authorised Signatory is to be witnessed by two persons. (iv) Copy of Passport or Voter ID card or copy of PAN card + Ration Card in support of Identity residence proof of Authorised Signatory and both the witnesses are to be furnished. (v) Tele. No., email website address of the above persons is to be mentioned. (vi) Calculation chart of Bond Amount as per Rule 22 (iv) (b) of the Rules , duly signed by the Authorised Signatory, is to be furnished and so calculated bond amount is to be indicated in para 1 of the Form-H. 8. Once the unit commences service activity the LOA shall be valid for five years from the date of commencement of service activity and the Unit shall be under an obligation to fulfil its net foreign exchange earnings obligation as provided in Rule 53. 9. The unit shall execute registered lease deed with SEZ developer and submit the same within 6 months of issue of LOA. 10. The Unit shall abide by all rules, regulations and conditions, and maintain records / books of accounts as prescribed by sectoral regulators, and confirm to/fulfil the conditions as per the SEZ Act and Rules . 11. Any difficulty or suggestion in these instructions may be brought to the otice of the Director, SEZ Division, Department of Commerce, Udyog Bhawan, New Delhi. Yours faithfully, (Sanjeet Singh) Director Tel. 2306 2109 E-mail: [email protected]