SEZ Rules 2026

 

The Government of India, through the Ministry of Commerce and Industry (Department of Commerce), has notified the Special Economic Zones Rules, 2026 vide G.S.R. 114(E) dated 3 February 2026

This amendment introduces a significant procedural reform under the Special Economic Zones Rules, 2006, specifically concerning units operating in International Financial Services Centres (IFSCs).

A new sub-rule 19(1A) has been inserted, empowering the Administrator (IFSCA) to issue a Letter of Approval (LoA) in newly introduced Form GA for setting up units in an International Financial Services Centre

Correspondingly, Form GA has been formally incorporated into the SEZ Rules as the prescribed format for granting such approvals.

The notification lays down:

• The authority and process for issuance of the Letter of Approval by the Administrator (IFSCA).

• The validity framework of the LoA (initial one-year validity for implementation; five years from commencement of operations).

• Mandatory compliance with the SEZ Act, 2005 and SEZ Rules, 2006.

• Execution of Bond-cum-Legal Undertaking.

• Requirement of obtaining all statutory and regulatory approvals, including from the International Financial Services Centres Authority (IFSCA).

• Conditions governing authorised operations, exports of financial services, domestic tariff area supplies, pollution control compliance, renewal or exit options, and cancellation provisions for non-compliance.

This amendment formalizes and streamlines the approval mechanism for IFSC units within SEZs—particularly in GIFT City—by clearly defining the administrative authority, procedural structure, and compliance framework.

Overall, the Special Economic Zones Rules, 2026 strengthen regulatory clarity and institutional alignment between SEZ administration and IFSC governance, thereby facilitating structured growth of India’s international financial services ecosystem.