The International Financial Services Centres Authority (IFSCA) has taken another significant step toward enhancing the regulatory framework that underpins innovation and efficiency in India’s growing financial services sector. On May 9, 2025, IFSCA released a Request for Feedback on the Draft IFSCA (TechFin and Ancillary Services) Regulations, 2025, signaling a push toward a more integrated, future-ready ecosystem at GIFT City, Gandhinagar.
A Unified Vision for TechFin and Ancillary Services
The proposed regulations aim to establish a single, comprehensive regulatory framework for TechFins and Ancillary Services Providers. These entities are essential enablers in the financial services value chain, offering support, expertise, and technology that directly or indirectly enhance the functioning of regulated financial entities. By unifying the oversight of ancillary services and technology providers under one regulation, IFSCA seeks to streamline operations, boost compliance, and enhance investor confidence.
These service providers—including chartered accountants, legal advisors, fintech developers, trustees, fund accountants, and consultants—play a pivotal role in supporting institutions within the Banking, Financial Services, and Insurance (BFSI) sector, both within and beyond India.
From Fragmentation to Integration
Previously, IFSCA had issued separate frameworks:
- The Ancillary Services Framework (dated February 10, 2021), which enabled professionals to offer specialized services in GIFT IFSC.
- The FinTech Entity Framework (dated April 27, 2022), designed to nurture innovation in financial services through regulatory sandboxes and enable pure-play technology providers to operate under a structured regime.
While both frameworks served their respective purposes, evolving market dynamics and stakeholder feedback have highlighted the need for a unified approach. The draft regulations will consolidate these frameworks and include provisions for outsourced activities as permitted by various sectoral regulators, thereby simplifying compliance and registration procedures.
Promoting Ease of Doing Business in GIFT-IFSC
The intent behind the draft regulations aligns closely with IFSCA’s larger vision of positioning GIFT-IFSC as a regional and global financial capability hub. The proposed unified registration process for service providers aims to reduce regulatory friction, attract global talent and expertise, and foster an ecosystem that supports innovation, transparency, and employment generation.
By consolidating multiple regulatory structures into one, IFSCA seeks to lower entry barriers, enhance operational efficiency, and create an enabling environment for firms delivering cutting-edge financial and ancillary services.
Call for Public Participation
IFSCA is actively seeking public comments, feedback, and suggestions on the draft regulations from market participants, institutions, and the general public. This consultative approach ensures that the final regulations are robust, balanced, and responsive to the needs of the financial ecosystem.
Stakeholders are invited to submit their input by June 1, 2025, via email to ancillary@ifsca.gov.in with a copy to kalpesh.mehta@ifsca.gov.in, using the subject line “Comments on draft IFSCA (TechFin and Ancillary Services) Regulations, 2025.” Comments should be provided in MS Word or Excel format, following the template provided in Annexure-I of the official notification.
Conclusion
With this initiative, IFSCA reinforces its commitment to fostering innovation, supporting financial service excellence, and building a world-class financial ecosystem in GIFT City. The proposed regulations are not just a step forward in regulatory reform—they are a strategic move to place India at the forefront of global financial services. Stakeholder feedback will be instrumental in shaping this vision into a practical and impactful reality.
