The International Financial Services Centres Authority (IFSCA) has approved a set of regulatory changes aimed at simplifying compliance and improving operational efficiency for entities operating in GIFT City, as per news reports.
The decisions were taken at the authority’s meeting held on December 22 and cover fund management entities, global in-house centres (GICs) and capital market intermediaries.
IFSCA approved amendments to the Fund Management Regulations to address operational hurdles faced by fund management entities (FMEs). One of the key changes relates to eligibility norms for key managerial personnel.
Alongside existing experience-based requirements, the regulator has introduced a certification-based pathway with lower experience thresholds.
The definition of eligible work experience has also been expanded. Experience gained at consulting and advisory firms, as well as private and public companies engaged in finance-related activities, will now be considered valid for senior roles at FMEs.
The regulator has also eased rules around fundraising timelines. FMEs managing venture capital and restricted schemes will now be permitted to seek multiple 6-month extensions for the validity of their private placement memorandums (PPMs), replacing the earlier restriction of a single extension.
Additionally, IFSCA has allowed a one-time 3-month window for schemes whose PPMs have already expired. This includes open-ended schemes that began investing with an initial corpus of $1 million but did not reach the required minimum of $3 million. The authority said safeguards would be implemented to protect investor interests in such cases.
FMEs that are required to appoint an IFSC-based custodian have been granted a 24-month migration window, subject to specified conditions. The move is intended to provide entities with adequate time to transition without disrupting ongoing operations.
Beyond fund management, IFSCA approved the IFSCA (Global In-House Centres) Regulations, 2025, replacing the earlier 2020 framework. The revised regulations recognise multiple operating models for GICs and allow limited servicing of Indian group entities.
The new framework also relaxes employee transfer limits and permits the use of third-party service providers and co-delivery models. These changes are designed to strengthen GIFT City’s position as a hub for high-value financial and technology services.
IFSCA has removed the minimum office space requirement for service providers engaged in bookkeeping, accounting, taxation and financial crime compliance, citing high fixed costs as a barrier for new entrants.
Amendments were also approved for capital market intermediary norms, including reduced experience requirements for compliance officers and broader eligibility of fintech and academic qualifications.
Intermediaries holding multiple registrations will now be allowed to appoint a single principal officer across business verticals, except for distribution activities, which will continue to require a separate vertical head.
Read More: GIFT City Funds Hit $26.3 Billion; Investments Cross $13.2 Billion and Investor Base Rises to 4,733!
The latest set of relaxations reflects IFSCA’s focus on improving regulatory efficiency and reducing entry barriers in GIFT City. By easing norms across fund management, GIC operations and market intermediaries, the authority aims to strengthen the IFSC’s competitiveness as a global financial services hub.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Dec 24, 2025, 11:24 AM IST
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