The International Financial Services Centres Authority (IFSCA) on July 01, 2026, issued a press release stating the Reporting of Foreign Direct Investment (FDI) received by regulated entities in IFSC.
The following has been stated:
• The RBI, in consultation with the regulator, has revised the FAQs on the Annual Return on Foreign Liabilities and Assets (FLA) under FEMA, 1999, by updating answers to certain questions and adding a new one. The clarification mainly relates to the reporting of Foreign Direct Investment (FDI) in regulated entities (REs) located in IFSCs.
• It has been clarified that although FDI regulations do not apply to investments made in IFSC-based regulated entities, data on such investments is still required for India’s balance of payments compilation. Accordingly, these regulated entities will not be required to file the FLA return with the RBI. Instead, the concerned Authority will separately issue instructions to these entities for submission of the required data for statistical and reporting purposes.
• Regulated entities have been advised to await further directions from the Authority regarding the detailed reporting mechanism.
