The quiet authority of regulation often reveals itself not through spectacle but through carefully calibrated decisions that reshape how institutions work, hire, raise money and imagine their future. That calibration was on display on December 22, 2025, when the International Financial Services Centres Authority (IFSCA) held its 26th meeting and approved a series of measures that together signal a maturing phase for GIFT City as India’s global financial gateway.
At the heart of the meeting was a conscious effort to ease operational friction without diluting investor protection. Amendments to the IFSCA Fund Management Regulations, 2025 reflected this balancing act. Fund Management Entities (FMEs) operating in GIFT IFSC have long flagged the rigidity of eligibility norms for Key Managerial Personnel (KMPs) as a constraint in a market where global talent pools do not always align neatly with traditional definitions of financial sector experience. By relaxing work experience requirements and introducing a certification-based alternative with reduced experience thresholds, the Authority has acknowledged the changing contours of financial expertise. The widening of acceptable work experience to include consulting and advisory firms, as well as private and public companies performing functions akin to financial institutions, further opens the door to a more diverse leadership pipeline.
Fundraising timelines, often hostage to market cycles rather than managerial intent, also received attention. The Authority introduced greater flexibility in the validity of private placement memorandums for venture capital and restricted schemes. The earlier one-time extension rule has been replaced with a more pragmatic framework allowing multiple six-month extensions, subject to fees and timely filings. For schemes whose Private Placement Memorandum (PPM) have already expired, including open-ended schemes that commenced investments after raising USD 1 million but fell short of the USD 3 million minimum corpus, a one-time three-month extension window has been provided. At the same time, specific safeguards have been built in to protect investors in such schemes, underscoring that flexibility is not a synonym for laxity.
Custodial infrastructure, another cornerstone of investor confidence, was addressed through a measured transition approach. Fund managers required to appoint IFSC-based custodians will now have a 24-month migration window, allowing entities to realign operations without disruption.
Perhaps the most consequential decision of the meeting was the approval of the draft IFSCA Global In-House Centres Regulations, 2025. These regulations seek to provide a comprehensive framework for GIC units delivering financial and related services from GIFT IFSC to global financial institution groups. The intent is unambiguous. GIFT IFSC is being positioned not merely as a transactional hub but as a centre for high-value services encompassing technology, risk management, compliance, analytics and core financial operations.
The timing of this regulatory refresh is not incidental. India already hosts around 1,900 global capability and in-house centres, a number projected to rise to 2,400 by 2030. Export revenues from these centres stood at USD 46 billion in FY 2022-23 and rose sharply to USD 64 billion in FY 2023-24, alongside employment for about 1.8 million people. Projections point to USD 120 billion in revenues and 4.3 million jobs by 2030. By drawing this momentum into India’s first international financial services centre, the Authority is attempting to anchor global financial value chains more firmly onshore.
The revised GIC framework is the product of both experience and consultation. Since the original notification in October 2020 recognised GICs as a financial service, the ecosystem has evolved into a significant pillar of IFSC activity. A two-stage public consultation process in July 2024 and September 2025 drew 80 comments from 18 stakeholders, touching on definitions, employee transfers and the ability to serve Indian entities. The resulting regulations recognise multiple operating models including captive centres, shared services, build-operate-transfer arrangements, joint ventures and hybrid structures. Financial institution groups can now set up GIC units directly or through third-party service providers, reflecting global operating realities.
Measured openness characterises the framework. GIC units are permitted to derive up to 10 percent of their annual revenue from services provided to group entities located in India, and groups currently serving India from offshore locations are encouraged to relocate such activities to GIFT IFSC.
Restrictions on employee transfers have been eased, and the scope of permissible services has been clarified. Governance, registration, reporting and supervisory provisions have been streamlined while retaining robust compliance and risk management standards. Transition provisions aim to ensure that existing GIC units continue operations smoothly as they align with the new norms.
In parallel, IFSCA addressed cost and entry barriers in professional services. By approving the deletion of the minimum office space requirement under the Book-keeping, Accounting, Taxation and Financial Crime Compliance Services Regulations, 2024, IFSCA has removed a fixed-cost hurdle that disproportionately affected smaller and newer entrants. The move is expected to support the growth of a competitive professional services ecosystem within GIFT IFSC.
Capital market intermediaries also saw a recalibration of norms. Eligibility criteria for principal officers and compliance officers have been broadened to include postgraduate qualifications in fintech and STEM disciplines, while experience requirements for graduates have been halved from ten years to five. Intermediaries holding multiple registrations may now appoint the same principal officer, subject to safeguards for distribution activities. Clarifications on liquid net worth calculations bring greater coherence to capital adequacy assessments, and custodians have been given time until June 30, 2026 to meet a revised minimum net worth of USD 1 million. The introduction of an umbrella registration option points towards regulatory simplification for multi-activity entities.
Finally, a seemingly technical amendment to the definition of Lloyd’s Service Company under the IFSCA Registration of Business Regulations, 2021 carries broader implications. By including service companies promoted by group entities of Lloyd’s managing agents or members, the Authority has widened the scope for Lloyd’s operations, strengthening the insurance ecosystem within GIFT IFSC.
Taken together, the decisions of the 26th Authority meeting sketch a clear trajectory. GIFT City is being shaped as a place where global finance can operate with confidence, flexibility and depth, grounded in regulation that understands both market realities and long-term national ambition. The notifications will follow in due course, but the direction is already set.