The Ministry of Commerce and Industry, Department of Commerce, issued Notification G.S.R. 895(E) dated 15 October 2026, introducing the Special Economic Zones (Fourth Amendment) Rules, 2026. The notification is published in the Gazette of India and states that the amendments take effect on the date of Gazette publication. It modifies Rules 18, 19, 21B and 22 of the Special Economic Zones Rules, 2006, primarily for activities within an International Financial Service Centre (IFSC).
For a fund set up in an IFSC, Rule 18(2) now recognises the provisional offer of premises confirmed by the SEZ developer in writing for the fund management entity (FME) as the fund's provisional offer of space. A lease deed executed by that FME is similarly recognised as the fund's lease deed. These provisions address the supporting premises documentation for IFSC funds.
Under amended Rule 19(4), the date on which the International Financial Services Centres Authority (IFSCA) first grants a final recognition, registration, licence or authorisation to an IFSC unit is treated as the commencement date of its service activity. The commencement date determined on that basis remains unchanged even if the relevant recognition or authorisation later ceases to be valid. For renewal of an IFSC unit's Letter of Approval, Rule 19(6B) provides for a decision based on IFSCA recommendations considering employment generated, violations of applicable laws related to the unit's functioning and any defaults in statutory payments.
Substituted Rule 21B permits an IFSC aircraft- or ship-leasing unit, or an applicant proposing such a unit, to share office space or manpower or both with another eligible aircraft- or ship-leasing unit or an authorised Trust and Company Service Provider, where IFSCA permits such arrangements. The rule includes a condition concerning the service relationship with the Trust and Company Service Provider. Where such sharing is permitted, a separate provisional offer of space and lease deed is not required: those of the unit whose office space is shared suffice for Rule 18 purposes.
A further proviso to Rule 22(3) excludes a fund set up in an IFSC from that sub-rule. IFSC fund managers, SEZ units and aircraft or ship leasing businesses should review their premises records, IFSCA approvals, commencement dates and Letter of Approval renewal documentation under the amended requirements. The measure is an enacted amendment, not a draft proposal.