IFSCA Issues Norms for Appointment and Review of Public Interest Directors

  • Blog|News|FEMA & Banking|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 15 October, 2025

Latest from Taxmann

IFSCA Public Interest Directors norms

Circular No. IFSCA/CMD-DMIIT/PID-MII/2025-26/001, Dated: 13.10.2025

1. Background

The International Financial Services Centres Authority (IFSCA) has issued a circular to strengthen the governance framework of Market Infrastructure Institutions (MIIs) operating within IFSCs.

This framework has been notified under the provisions of the IFSCA (Market Infrastructure Institutions) Regulations, 2021.

2. Objective of the Circular

The circular seeks to ensure that MIIs in IFSCs maintain high standards of governance, transparency, and accountability.

By laying down clear guidelines for Public Interest Directors (PIDs), IFSCA aims to promote independent oversight and safeguard the integrity of financial markets within the IFSC ecosystem.

3. Eligibility and Appointment of Public Interest Directors

The circular outlines the eligibility criteria, appointment process, and reappointment procedures for PIDs serving on the boards of MIIs.

  • Only individuals who meet the fit and proper criteria and possess relevant expertise or experience in finance, law, or governance shall be eligible.
  • The appointment and reappointment of PIDs shall follow a transparent and merit-based process, in line with IFSCA’s prescribed norms.

4. Performance Review and Tenure

MIIs are required to establish a policy framework for periodic performance review of PIDs.

Such reviews must assess their contribution to board deliberations, adherence to governance standards, and participation in key committees.

The tenure and reappointment shall depend on the outcome of these reviews, ensuring accountability and performance-linked continuity.

5. Knowledge Upgradation and Training

To enable effective discharge of duties, MIIs must implement a continuous learning and knowledge upgradation programme for PIDs.

This includes regular training sessions, workshops, and briefings on emerging regulatory developments, IFSC operations, and global best practices in market infrastructure governance.

6. Effective Date

The circular has been made effective immediately upon issuance by IFSCA.
All MIIs functioning in IFSCs are required to align their internal governance structures with the provisions of this circular without delay.

7. Key Takeaway

The new circular institutionalises a structured and transparent governance mechanism for Public Interest Directors, reinforcing IFSCA’s commitment to sound governance and investor protection in India’s international financial centres.

Click Here To Read The Full Circular

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied