The International Financial Services Centres Authority (IFSCA) continues to accelerate reforms at GIFT IFSC, reinforcing its position as a global financial hub. In its latest announcements, capabilities, encourage technological innovation, and strengthen stakeholder participation in rule-making. Here’s a closer look at the key developments:
- Framework for Transition Bonds: Enabling Climate-Aligned Capital for Hard-to-Abate Sectors
While Green and ESG-labelled debt securities have flourished globally, they tend to favor projects already aligned with net-zero goals. Recognizing this gap, IFSCA has now introduced a Framework for Transition Bonds under the IFSCA (Listing) Regulations, 2024.
These bonds are designed for hard-to-abate sectors — such as steel, cement, and shipping — enabling them to raise capital for credible and phased decarbonization. Key pillars of the framework include:
A credible transition plan at the entity level.
Alignment with global taxonomies and sector-specific roadmaps.
Independent external reviews to assess transition credibility.
Robust disclosure norms (initial and ongoing) to protect investor interests.
This framework empowers industries to fund their green shift while ensuring transparency and regulatory oversight, advancing India’s climate finance ecosystem.
- Third-Party Fund Management Services: Unlocking Global Access to Indian Fund Infrastructure
In a game-changing move, IFSCA has approved amendments to the Fund Management Regulations, 2025 to allow Third-Party Fund Management Services, often referred to as the “platform play.”
This model enables registered Fund Management Entities (FMEs) at GIFT IFSC to launch and manage schemes on behalf of foreign or domestic fund managers without requiring them to establish a physical presence. This innovation enhances IFSC’s global competitiveness by offering a scalable, cost-effective platform for international asset managers.
To safeguard investors, the framework mandates:
Authorization and additional net worth requirements for FMEs.
Scheme-level governance via a dedicated Principal Officer.
Strict eligibility and risk management norms.
A USD 50 million cap per scheme to manage exposure.
This opens the door for global fund houses to tap into India’s financial infrastructure without high entry barriers.
- IFSCA (TechFin and Ancillary Services) Regulations, 2025: Tech-Driven Innovation in Finance
IFSCA’s newly approved TechFin and Ancillary Services Regulations, 2025 aim to bring clarity and efficiency to support services in the financial ecosystem.
Replacing older frameworks, these regulations now provide a unified structure for entities offering services such as fund administration, auditing, cybersecurity, AI-driven analytics, and digital banking support. Registration will be conducted via the Single Window IT System (SWIT), and entities must meet “fit and proper” criteria, appoint key officers, and comply with a Code of Conduct.
With global best practices and an eye on India’s skilled tech workforce, this framework is poised to position GIFT IFSC as a major global capability hub.
- Participatory Regulation: New Guidelines for Regulation-Making
IFSCA is also revamping how it creates regulations. The updated IFSCA (Regulation-Making and Subsidiary Instructions) Regulations, 2025 expand the scope of public consultation beyond primary regulations to include circulars and guidelines on substantive policy matters. The framework also introduces structured procedures, flexible consultation windows, and exemptions for urgent actions, ensuring both transparency and agility in rule-making.
- IFSCA Joins IOPS as a Governing Member
Marking its growing global stature, IFSCA has been inducted as a Governing Member of the International Organisation of Pension Supervisors (IOPS). This positions India at the global table in shaping pension regulations and governance.
