International Financial Services Centres Authority (Techfin And Ancillary Services) Regulations 2025

OVERVIEW

The International Financial Services Centres Authority (IFSCA) has recently issued the International Financial Services Centres Authority (Techfin and Ancillary Services) Regulations, 2025 on 24 July 2025 which consolidates and supersedes the 2021 Ancillary Services and 2022 TechFin frameworks, unifying them into a single, comprehensive regulatory framework. These new regulations shall govern the operations of TechFins and Ancillary Service Providers within the IFSC ecosystem. The permissible activities and the key regulatory requirements are summarized below for reference

KEY HIGHLIGHTS OF THE REGULATIONS

Eligibility criteria

• The applicant must be entity incorporated in IFSC as a company / LLP or as a branch of a company / LLP incorporated outside the IFSC.
• Further, even partnership firms which are registered under the Indian Partnership Act, 1932, wherein all its partners are members of professional body or institute constituted under any Act of Parliament shall also be eligible to make an application under these regulations.
• All promoters or partners shall be from jurisdictions not classified by the FATF as “High-Risk Jurisdictions subject to a call for action.”

Permissible activities

• The list of permissible activities that can be undertaken by Techfin and Ancillary Service Providers has been widened by IFSCA – please refer to Appendix A for the complete list

Compliance requirements

• The registered service provider must appoint a full-time principal officer and a compliance officer who shall be based out of IFSC.
• The registered service provider shall operate in Specified Foreign Currencies, with INR accounts allowed for administrative, statutory, or other permitted purposes.
• The registered service provider shall prepare its balance sheet in one of the Specified Foreign Currencies.
• Registered entities and key personnel must meet 'fit and proper' criteria, ensuring integrity and absence of disqualifications.
• A code of conduct is mandated, emphasizing regulatory compliance and prompt disclosure of significant changes.

Service recipients

• TechFin and Ancillary Service Providers may offer services only to an intermediary or a non-resident service recipient, from FATF-compliant jurisdictions. They may also offer services to residents, for the limited purpose of setting-up their offices in the IFSC or overseas.

APPENDIX A

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.