The regulator said the changes are being made to "further streamline the operations at IFSC, based on the internal discussions and consultations held with the stakeholders".
In this regard, amendments have been made to the Sebi (International Financial Services Centres) Guidelines, 2015.
Currently, Gujarat International Finance Tec-City (GIFT) is the lone IFSC in the country.
Sebi-registered intermediaries or its international associates may provide financial services relating to securities market in IFSC, without forming a separate company subject to the regulator's prior approval, according to a circular.
"In case such financial services are offered exclusively to institutional investors, prior permission of the board is not required," it said.
Further, the circular said a non Sebi-registered intermediary providing financial services exclusively to institutional investors would not require Sebi's approval. This is subject to the condition that it is a recognised entity in a foreign jurisdiction.
Issuers of debt securities at IFSC have to prepare their statement of accounts in accordance with IFRS/ US GAAP/ Ind AS or accounting standards as applicable to them in their place of incorporation.
In other cases, Sebi said, "a quantitative summary of significant differences between national accounting standards and IFRS shall be prepared by such entity and incorporated in the relevant disclosure documents to be filed with the exchange".
International Financial Reporting Standards (IFRS), US Generally Accepted Accounting Principles (GAAP) and Indian Accounting Standards (Ind AS) are among the various accounting standards.
An IFSC enables to bring back to India the financial services and transactions that are currently carried out in offshore financial centers by Indian corporate entities and overseas branches or subsidiaries of financial institutions.