IFSCA Mandates IFSC ISINs for Demat Securities

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  • Last Updated on 10 February, 2026

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IFSCA ISIN migration for IFSC Units

Circular F No. IFSCA-PLNP/85/2025-Capital Markets, Dated: 06.02.2026

The International Financial Services Centres Authority (IFSCA) has directed that all Units operating in the IFSC and intending to dematerialise securities or other permitted financial products must obtain International Securities Identification Numbers (ISINs) from a depository recognised by IFSCA.

This measure is aimed at strengthening the regulatory and supervisory framework within the IFSC ecosystem.

1. Requirement for Units Seeking Dematerialisation

Under the circular:

  • Units proposing to dematerialise securities or other permitted financial products
  • Must obtain ISINs only from an IFSCA-recognised depository

This requirement applies to both new issuances and ongoing dematerialisation activities.

2. Transition for Units Holding Domestic ISINs

IFSCA has further directed that:

  • Units which have already obtained ISINs from domestic depositories in India
  • Are required to obtain fresh ISINs from an IFSC-recognised depository

2.1 Deadline for Transition

  • On or before 31 August 2026

This transition ensures regulatory alignment and consolidated oversight within the IFSC framework.

3. Responsibilities of IFSC-Recognised Depositories

The depository recognised in the IFSC is required to:

  • Prepare a standardised process flow for ISIN issuance and migration
  • Coordinate with domestic depositories in India to ensure seamless onboarding of IFSC Units
  • Issue FAQs, guidance notes, and public notices, as required
  • Facilitate a smooth and orderly transition for all affected Units

4. Submission of Compliance Report to IFSCA

To ensure regulatory closure:

  • The IFSC-recognised depository must submit a compliance report to IFSCA
  • Confirming completion of the ISIN transition process

4.1 Deadline for Compliance Report

  • 30 September 2026

5. Regulatory Objective

The circular seeks to:

  • Centralise securities identification within the IFSC ecosystem
  • Enhance regulatory supervision and data integrity
  • Ensure consistency with IFSC-specific regulatory architecture
  • Reduce dependence on domestic market infrastructure for IFSC issuances

6. Key Takeaway

All IFSC Units dealing in dematerialised securities must align with IFSCA-recognised depositories for ISIN issuance, with mandatory migration from domestic ISINs by 31 August 2026, supported by a coordinated and standardised transition framework.

Click Here To Read The Full Circular

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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