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.
๐๐ก๐จ ๐ข๐ฌ ๐ ๐๐๐๐ก๐ ๐ข๐ง ๐จ๐ซ ๐๐ง๐๐ข๐ฅ๐ฅ๐๐ซ๐ฒ ๐๐๐ซ๐ฏ๐ข๐๐ ๐๐ซ๐จ๐ฏ๐ข๐๐๐ซ?
– 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.
๐๐๐ฒ ๐๐ข๐ ๐ก๐ฅ๐ข๐ ๐ก๐ญ๐ฌ:
1. ๐๐๐ง๐๐๐ญ๐จ๐ซ๐ฒ ๐ซ๐๐ ๐ข๐ฌ๐ญ๐ซ๐๐ญ๐ข๐จ๐ง ๐๐ง๐ ๐ญ๐ซ๐๐ง๐ฌ๐ข๐ญ๐ข๐จ๐ง ๐ญ๐ข๐ฆ๐๐ฅ๐ข๐ง๐ : All such service providers must register with IFSCA. Existing ones have 12 months to transition (extendable to 24 months).
2. ๐๐๐๐ข๐ง๐๐ ๐ฌ๐๐จ๐ฉ๐ ๐จ๐ ๐ฉ๐๐ซ๐ฆ๐ข๐ญ๐ญ๐๐ ๐ฌ๐๐ซ๐ฏ๐ข๐๐๐ฌ: First and Second Schedules list permitted Ancillary Services and TechFin Services. The Third Schedule provides list of excluded services.
3. ๐๐ฅ๐ข๐ ๐ข๐๐ข๐ฅ๐ข๐ญ๐ฒ ๐๐ง๐ ๐ฅ๐๐ ๐๐ฅ ๐๐จ๐ซ๐ฆ ๐ซ๐๐ช๐ฎ๐ข๐ซ๐๐ฆ๐๐ง๐ญ๐ฌ: Must be a company/LLP in IFSC or foreign branch. Entities from FATF high-risk jurisdictions are barred.
4. ๐ ๐ข๐ญ-๐๐ง๐-๐ฉ๐ซ๐จ๐ฉ๐๐ซ ๐๐ซ๐ข๐ญ๐๐ซ๐ข๐ ๐๐จ๐ซ ๐ค๐๐ฒ ๐ฉ๐๐ซ๐ฌ๐จ๐ง๐ฌ: Promoters, directors, principal and compliance officers must meet โ๐ง๐ช๐ต ๐ข๐ฏ๐ฅ ๐ฑ๐ณ๐ฐ๐ฑ๐ฆ๐ณโ standards.
5. ๐๐ฅ๐ข๐๐ง๐ญ ๐๐ฅ๐ข๐ ๐ข๐๐ข๐ฅ๐ข๐ญ๐ฒ ๐ฅ๐ข๐ฆ๐ข๐ญ๐๐ ๐ญ๐จ ๐ง๐จ๐ง-๐ซ๐๐ฌ๐ข๐๐๐ง๐ญ๐ฌ : Services may be provided only to non-residents, except for limited cases such as setting up an office in the IFSC or overseas.
6. ๐๐จ๐ฏ๐๐ซ๐ง๐๐ง๐๐ ๐๐ง๐ ๐๐๐ฉ๐จ๐ซ๐ญ๐ข๐ง๐ : 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
Readers may reach out to us with comments or questions at info@regstreetlaw.com.
