Strengthening GIFT-IFSC: Key Regulatory Reforms for Fund Management and Global In-House Centres
SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation, and Infrastructure | SDG 17: Partnerships for the Goals
International Financial Services Centres Authority (IFSCA) | Ministry of Finance
The International Financial Services Centres Authority (IFSCA), in its 26th meeting held on December 22, 2025, approved a series of significant regulatory amendments aimed at enhancing the ease of doing business and strengthening the financial ecosystem at GIFT-IFSC. These reforms target critical sectors including fund management, professional services, and global in-house operations.
Key reform highlights include:
GIC 2025 Framework: Formally recognises Captive, Shared Services, and Build-Operate-Transfer (BOT) models, and permits GICs to serve Indian group entities up to 10% of total revenue, expanding operational and commercial flexibility.
Fund Management Flexibility: Introduces certification-based alternatives for KMP eligibility, allows multiple six-month extensions for Private Placement Memoranda (PPMs), and provides a 24-month migration window for FMEs to appoint IFSC-registered custodians.
Intermediary Reforms: Reduces Principal Officer experience requirements to 5 years and introduces a unified “Umbrella Registration” for entities holding multiple registrations such as broker and custodian.
Professional Services Growth: Lowers entry barriers for Book-keeping and Taxation (BATF) providers by removing the mandatory 60 sq. ft per employee office space requirement, enabling more flexible service models.
Insurance Expansion: Expands the definition of ‘Lloyd’s Service Company’ to include service companies promoted by group entities of Managing Agents, strengthening the specialised insurance ecosystem.
What is a Global In-House Centre (GIC)? A GIC is a unit established within an IFSC by a financial institution group to provide specialized internal services—such as risk management, compliance, technology, and analytics—to its own group entities worldwide. These centres allow global firms to centralize high-value functions in a cost-effective, well-regulated environment while contributing to local employment and skill development.
Policy Relevance
These reforms are a strategic component of the Viksit Bharat @2047 vision, positioning GIFT-IFSC as a global hub capable of competing with established offshore financial centres. By relaxing KMP norms and allowing GICs to service domestic entities, the government is facilitating the “onshoring” of India-centric financial transactions that were previously managed from abroad. The removal of rigid office space mandates and the introduction of unified “umbrella” registrations for intermediaries directly address operational bottlenecks, making India a more attractive destination for global capital and specialized professional talent.
Follow the full news here: Key Regulatory Reforms Approved at the 26th IFSCA Authority Meeting to Strengthen GIFT IFSC Ecosystem