The International Financial Services Centres Authority (IFSCA) has taken yet another progressive step toward ensuring transparency, compliance, and robust financial infrastructure within the GIFT-IFSC ecosystem. On August 7, 2025, IFSCA issued a crucial circular mandating certain regulated entities in the International Financial Services Centre (IFSC) to onboard themselves with the Central Registry for recording and satisfying transactions related to the assignment of receivables.
This move is in alignment with Section 19 of the Factoring Regulation Act, 2011 and Regulation 6 of the IFSCA (Registration of Factors and Registration of Assignment of Receivables) Regulations, 2024, which require the registration of every transaction involving the assignment and satisfaction of receivables.
Who’s Affected?
The circular specifically directs the following entities to register with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI):
- IFSC Banking Unit
- IFSC Banking Company
- IFSC Finance Company
- IFSC Finance Unit
- IFSC Trade Receivables Discounting System (TReDS)
These categories have now been officially added to the ‘IFSCA Entity’ dropdown list in the Entity Registration Form on the CERSAI portal, enabling seamless onboarding.
Why This Matters
Assignment of receivables—where a business sells its invoices to a third party to meet short-term liquidity needs—is a vital component of trade finance. Ensuring that such transactions are duly recorded and satisfied in a centralized registry like CERSAI provides several benefits:
Legal Certainty: Registration protects the rights of assignees in case of disputes or competing claims.
Transparency: Lenders and buyers can validate the status of receivables before entering into a transaction.
Fraud Prevention: Multiple assignments of the same receivable are avoided.
Ease of Doing Business: Centralized records simplify compliance and improve market confidence.
By mandating this registration, IFSCA reinforces the integrity of trade and supply chain finance within IFSC, helping position GIFT-IFSC as a globally credible destination for receivables-based financing.
Support for Compliance
To facilitate this onboarding and ensure smooth implementation, the circular points entities to specific user manuals available on the CERSAI website:
Entity Management User Manual (for onboarding instructions)
AOR Transaction User Manual (for registering and satisfying assignment of receivables)
Additionally, entities facing challenges can reach out to CERSAI’s Helpdesk via email (helpdesk@cersai.org.in) or by phone on the provided numbers for personalized guidance.
Immediate Effect and Enforcement
This circular has been issued under Section 12 and 13 of the IFSCA Act, 2019, giving it statutory authority and immediate effect. It’s a signal that IFSCA is committed to a framework that combines regulatory discipline with business facilitation.