On July 8, 2025, IFSCA released the TechFin and Ancillary Services Regulations, 2025, providing a unified regulatory framework for entities offering technology and support services facilitating financial activities in IFSC.

Summary
The newly notified regulations introduce a structured regime for TechFin and Ancillary Service Providers (TASPs) operating in GIFT City IFSC. Key highlights include:

Scope and Coverage:
The regulations cover entities providing direct or indirect support (TechFin or Ancillary Services) to financial service providers engaged in activities listed under Section 3(1)(e)(i)-(xi) of the IFSCA Act, 2019.

Registration Requirement:
All entities (existing and new) must obtain registration from IFSCA. A transition period of 12 months is provided to existing providers under the previous circulars, extendable up to 24 months.

Eligible Legal Forms:
Entities may be companies, LLPs, or branches of foreign firms. Registered partnership firms with all partners from professional bodies are also eligible.

Permitted Services:

• Ancillary Services include BPO/KPO, audit, compliance, valuation, legal, HR/payroll, fund admin, secretarial, trusteeship, etc.
• TechFin Services include cybersecurity, cloud computing, RegTech, AI/ML, blockchain, ERP, IT infra, and digital identity solutions.

Prohibited Services:

• Core regulated activities, physical facility management, logistics, and construction services are not permitted under this framework.

Operational Norms:

• Operations must be in specified foreign currencies (with limited INR use).
• Service provision allowed to non-residents from FATF-compliant jurisdictions.
• Appointment of Principal Officer and Compliance Officer is mandatory (with limited exceptions).
• Compliance with a defined Code of Conduct and fit-and-proper criteria for key personnel.

SWIT Platform:

• Applications must be made via the Single Window IT System (SWIT) with necessary declarations and documentation.

Regulatory Oversight:

• IFSCA reserves powers for inspection, issuing directions, relaxing norms, and taking enforcement action where required.

Repeal of Earlier Frameworks:*

• Circulars dated Feb 10, 2021 (Ancillary Services) and Apr 27, 2022 (FinTech) stand repealed after a 24-month sunset period.

For more details click here (https://ifsca.gov.in/CommonDirect/DownloadFile?id=21626bde60601ef44a0ed022013d2da8&fileName=264897_20250723_0122.pdf)

Nexpective Advisors is your trusted partner in GIFT IFSC regulatory and advisory services. If this update impacts your operations or compliance approach, connect with us for tailored guidance and proactive implementation support.