On November 04, 2025, the International Financial Services Centres Authority (“IFSCA”) has released a Consultation Paper on the proposed IFSCA (Pension Fund) Regulations, 2025 (“Proposed Regulations”),[1] aimed at establishing a comprehensive regulatory framework for pension products and services within the GIFT International Financial Services Centre (IFSC).
Background
Under Section 13 of the International Financial Services Centres Authority Act, 2019, the IFSCA is empowered to regulate and develop pension products and services in the IFSC. Acting on IFSCA’s recommendation:
- The Government of India, through a gazette notification dated December 05, 2024, classified ‘schemes operated by a pension fund’ as a “financial product” under the IFSCA Act, 2019.
- A subsequent gazette notification dated October 01, 2025, exempted the applicability of Section 25 of the IFSCA (Pension Fund) Regulations Act, 2013 to financial products, financial services, or financial institutions operating within the IFSC.
These developments pave the way for IFSCA to independently regulate pension funds in the GIFT City.
Key Objectives
The Proposed Regulations seek to:
- Establish a robust and inclusive pension ecosystem within the IFSC;
- Create an enabling regulatory environment for pension products and services; and
- Position the GIFT-IFSC as a global hub for pension funds, catering to Non-Resident Indian (NRIs), Person of Indian Origin (PIOs), and foreign expatriates.
Salient Features
The draft framework provides for:
- voluntary participation of subscribers;
- flexibility in determining contribution frequency and amounts;
- multiple investment options, scheme types, and diverse exit choices; and
- integration with medical and health insurance policies to enhance value propositions for subscribers.
Public Consultation
IFSCA has invited comments and suggestions from stakeholders, market participants, and the general public on the proposed regulations. Deadline for feedback is November 25, 2025.
[1]https://ifsca.gov.in/CommonDirect/GetFileView?id=47a297ad49aaae8fa365313a914203d5&fileName=CONSULTATION_PAPER_ON_THE_PROPOSED_IFSCA__PENSION_FUND__REGULATIONS__2025_20251104_0342.pdf