On August 5, 2025, the International Financial Services Centres Authority (IFSCA) issued a request for feedback regarding the review of the IFSCA (Global In-House Centres) Regulations, 2020. This initiative aims to assess the effectiveness of the existing regulations, their relevance in the current environment, and to promote ease of doing business within the International Financial Services Centre (IFSC) in India.
Objective of the Review
The primary objective of this review is to evaluate the IFSCA (Global In-House Centres) Regulations, 2020, under Regulation 11 of the IFSCA (Procedure for making Regulations and subsidiary instructions) Regulations, 2025. The review will consider various factors, including the regulations’ objectives, outcomes, implementation experiences, global best practices, and their relevance in a rapidly changing financial landscape.
Background of Global In-House Centres (GICs)
The concept of Global In-House Centres (GICs) was introduced by the Government of India on October 16, 2020, following recommendations from the IFSCA. These centres are designed to provide support services related to financial products and services to entities within their financial services group. The IFSCA (Global In-House Centres) Regulations, 2020, were subsequently notified on November 13, 2020, to establish a regulatory framework for these centres.
GICs have emerged as a vital component of India’s financial services ecosystem, contributing to the development of a highly skilled talent pool. With India positioning itself as a global leader in digitization, GICs have the potential to enhance the capabilities of the GIFT IFSC, making it a competitive player among leading FinTech cities worldwide.
Overview of the Current Regulations
The existing regulations define a Global In-House Centre as a unit established in the IFSC to provide support services to entities within its financial services group. This includes a wide range of financial institutions such as banks, non-banking financial companies, investment banks, insurance companies, and brokerage firms.
The regulations also outline the eligibility criteria for registration, permissible activities, operational requirements, and compliance obligations for GICs. These include maintaining books of accounts in foreign currency, reporting operational information to the IFSCA, and adhering to KYC, AML, and CFT guidelines.
Call for Feedback
To enhance the effectiveness of the GIC ecosystem in the IFSC and align with international best practices, the IFSCA is seeking comments, suggestions, and feedback from the general public, market participants, and stakeholders. Interested parties are encouraged to submit their feedback via email to Shri Kalpesh Kumar Mehta, AGM, IFSCA, at ancillary@ifsca.gov.in by August 30, 2025.
Feedback should be structured in a specified format, including the name and details of the person or entity, organization name (if applicable), contact details, and specific comments or suggestions related to the regulations. Stakeholders are also encouraged to provide a detailed rationale for their feedback, including industry best practices from comparable jurisdictions.
Conclusion
The review of the IFSCA (Global In-House Centres) Regulations, 2020, represents a significant opportunity for stakeholders to contribute to the evolution of the regulatory framework governing GICs in India. By participating in this feedback process, stakeholders can help shape a more effective and efficient GIC ecosystem that supports the growth of the financial services sector in the IFSC.