The International Financial Services Centres Authority (“IFSCA”) vide Circular No. eF.No. 1829/IFSCA/GIC/1/2024,[1] dated May 09, 2025, issued a public consultation paper seeking feedback, comments, and suggestions on the draft IFSCA (TechFin and Ancillary Services) Regulations, 2025 (“Draft Regulations”). The Draft Regulations aim to create a dedicated regulatory framework for TechFin entities and Ancillary Services Providers operating within the International Financial Services Centre (“IFSC”) at GIFT City, Gandhinagar. Stakeholders and members of the public are encouraged to participate in the consultation process by submitting their views on the Draft Regulations latest by June 01, 2025.
The objective of the Draft Regulations is to facilitate the operations of service providers that aid, support, or are otherwise associated with the delivery of financial services as defined under of Section 3(1)(e) of the IFSCA Act, 2019, as well as such other services as may be notified by the Central Government. These said entities are expected to enhance the effectiveness, transparency, and compliance levels of financial service providers regulated by IFSCA.
The presence of such entities is expected to create employment opportunities and promote the overall development of GIFT-IFSC as a Regional Financial Capability Hub in the short term, and as a Global Financial Capability Hub in the long term.
[1] https://ifsca.gov.in/Viewer?Path=Document%2FReportandPublication%2Fdraft-tas-regulations_09-05-2025-3-50-1-09052025043323.pdf&Title=Consultation%20Paper%20on%20draft%20IFSCA%20%28TechFin%20and%20Ancillary%20Services%29%20Regulations%2C%202025&Date=09%2F05%2F2025