The International Financial Services Centres Authority (IFSCA Official) has notified the IFSCA (TechFin and Ancillary Services) Regulations, 2025, creating a unified regulatory framework for technology-enabled and support service providers in GIFT City . Replacing earlier frameworks, the new regime defines clear eligibility, registration, governance, and operational standards.
𝐖𝐡𝐨 𝐢𝐬 𝐚 𝐓𝐞𝐜𝐡𝐅𝐢𝐧 𝐨𝐫 𝐀𝐧𝐜𝐢𝐥𝐥𝐚𝐫𝐲 𝐒𝐞𝐫𝐯𝐢𝐜𝐞 𝐏𝐫𝐨𝐯𝐢𝐝𝐞𝐫?
– A TechFin service provider is any entity offering technology-based solutions (e.g., AI/ML, cybersecurity, KYC/AML, tokenisation) to assist in delivering financial services in IFSC.
– An Ancillary Service Provider is an entity offering audit, risk advisory, HR, BPO/KPO, compliance, valuation, or other support services that facilitate financial services in GIFT City.
𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬:
1. 𝐌𝐚𝐧𝐝𝐚𝐭𝐨𝐫𝐲 𝐫𝐞𝐠𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐭𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧 𝐭𝐢𝐦𝐞𝐥𝐢𝐧𝐞 : All such service providers must register with IFSCA. Existing ones have 12 months to transition (extendable to 24 months).
2. 𝐃𝐞𝐟𝐢𝐧𝐞𝐝 𝐬𝐜𝐨𝐩𝐞 𝐨𝐟 𝐩𝐞𝐫𝐦𝐢𝐭𝐭𝐞𝐝 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬: First and Second Schedules list permitted Ancillary Services and TechFin Services. The Third Schedule provides list of excluded services.
3. 𝐄𝐥𝐢𝐠𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐚𝐧𝐝 𝐥𝐞𝐠𝐚𝐥 𝐟𝐨𝐫𝐦 𝐫𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭𝐬: Must be a company/LLP in IFSC or foreign branch. Entities from FATF high-risk jurisdictions are barred.
4. 𝐅𝐢𝐭-𝐚𝐧𝐝-𝐩𝐫𝐨𝐩𝐞𝐫 𝐜𝐫𝐢𝐭𝐞𝐫𝐢𝐚 𝐟𝐨𝐫 𝐤𝐞𝐲 𝐩𝐞𝐫𝐬𝐨𝐧𝐬: Promoters, directors, principal and compliance officers must meet “𝘧𝘪𝘵 𝘢𝘯𝘥 𝘱𝘳𝘰𝘱𝘦𝘳” standards.
5. 𝐂𝐥𝐢𝐞𝐧𝐭 𝐞𝐥𝐢𝐠𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐥𝐢𝐦𝐢𝐭𝐞𝐝 𝐭𝐨 𝐧𝐨𝐧-𝐫𝐞𝐬𝐢𝐝𝐞𝐧𝐭𝐬 : Services may be provided only to non-residents, except for limited cases such as setting up an office in the IFSC or overseas.
6. 𝐆𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 𝐚𝐧𝐝 𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠: Financials and operations must be maintained in foreign currency (typically USD). IFSCA Official has powers to inspect, call for records, and impose or relax conditions.
This regulation marks a strategic shift in how support and technology service providers integrate with the IFSC ecosystem. By formalising the service provider regime, IFSCA Official is establishing GIFT City as a full-service, globally compliant financial hub.
The Regulations are available at https://lnkd.in/gq9qcvvJ
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