GIFT City Updates (April 2025)

CIRCULARS

• Remote Trading Participants on Stock Exchanges in the IFSC

Vide circular bearing number IFSCA-FMPP0BR/12/2023-Banking-Part(2) – PSO/001 dated 02.04.2025 issued in exercise of powers under Regulation 6(2) and 12(2) of International Financial Services Centres Authority (Payment and Settlement Systems) Regulations, 2024, read with clause 6(iii) of the circular on Fee Structure for the entities undertaking or intending to  undertake permissible activities in IFSC dated May 17, 2023, relating to fees applicable on grant of authorisation for all other FIs. The provided fee structure will be applicable to all PSO/ applicants desirous to setup a PSO in IFSC. CLICK HERE

• Revision in reporting formats for Fund Management Entities in IFSC

Vide circular bearing number F. No. IFSCA-IF-10SUP/1/2024-Capital Markets dated 03.04.2025, in reference to the  circular dated November 03, 2023, wherein the frequency of reporting was modified from half-yearly to quarterly and to paragraph 5 of the Circular dated May 31, 2023, which, inter alia, provides for supplement / update in the reporting formats, if so required, the present circular provides that a review has been done to include key details of retail schemes, capture granular data for supervision, restructure tables for clarity, add guidance notes where needed, and align formats with the IFSCA (Fund Management) Regulations, 2025. Updated formats are available under the “Downloads” section of the IFSCA website for FMEs to access and use for filings. CLICK HERE

• Direction for all Regulated Entities

Vide circular bearing number F. No 172/ IFSCA/Finance Company Regulations/2021-22/9IFSCA-LPRA/9/2024-Legal and Regulatory Affairs dated 03.04.2025,  provides that certain entities are operating in IFSC without holding a valid license/registration/authorisation certificate from International Financial Services Centres Authority (‘IFSCA’) and Letter of Approval under Special Economic Zones Act, 2005, (‘SEZ Act, 2005’), in contravention of the provisions of the International Financial Services Centres Authority Act, 2019 (‘IFSCA Act, 2019’) and SEZ Act, 2005. In response to the same following directions are issued mainly:

1. all regulated entities to hold valid and subsisting CoR or other equivalents as per IFSCA regulations along with LoA under SEZ Act, 2005.

2. Expiry of the LoA (1 year if business not commenced, 5 years after commencement) or failure to renew it on time may lead to enforcement action, including cancellation of registration/license/approval under applicable IFSCA regulations.

3. Conditions in point i. are deemed part of all previously issued CoR/license/approval documents under IFSCA regulations. Non-compliance may breach these terms and attract actions under clause 3. CLICK HERE

• Guidelines on Corporate Governance and Disclosure Requirements for a Finance Company

Vide Circular bearing number F. No 172/ IFSCA/Finance Company Regulations/2021-22/9F. No 172/ IFSCA/Finance Company Regulations/2021-22/9 dated 04.04.2025, in reference to The IFSCA Circular dated August 9, 2021 (updated April 4, 2025) provides guidelines on Corporate Governance and Disclosure Requirements for Finance Companies registered under the IFSCA (Finance Company) Regulations, 2021. It mandates that every Finance Company develop a Board-approved corporate governance framework and ensure disclosures in line with the Companies Act, 2013. The circular outlines applicability of generic (Part I) and detailed (Part II) guidelines, criteria for Board members' 'fit and proper' status, Board composition, appointment of a Compliance Officer, formation of key Board committees, and detailed requirements on disclosures in Board meetings, websites, and annual financial statements. Non-compliance may attract regulatory action under Section 12 of the IFSCA Act, 2019. CLICK HERE

• Amendment to the ‘Guidelines on Corporate Governance and Disclosure Requirements for a Finance Company.

Vide Circular bearing number F. No. 172/IFSCA/Finance Company Regulations/2025-26/01 dated 04.04.2025 in reference to International Financial Services Centres Authority (Finance Company) Regulations, 2021 (FC Regulations) and the ‘Guidelines on Corporate Governance and Disclosure Requirements for a Finance Company’(‘Guidelines’) issued thereunder vide Circular No. 172/ IFSCA/Finance Company Regulations/2021- 22/9, dated August 09, 2021, the present circular  amends the existing Guidelines on Corporate Governance and Disclosure Requirements for a Finance Company issued under the IFSCA (Finance Company) Regulations, 2021. It aligns the Guidelines with amendments to the FC Regulations (up to July 1, 2022) and the new Framework for Finance Companies undertaking Global/Regional Corporate Treasury Centre (GCTC/RCTC) activities. The circular clarifies that generic guidelines (Part I) apply to all Finance Companies except those registered for GCTC/RCTC activities, while detailed guidelines (Part II) apply to those undertaking core activities (excluding GCTC/RCTC). The amendments are effective immediately. CLICK HERE

• Framework for Finance Company/Finance Unit undertaking the activity of Global/ Regional Corporate Treasury Centres.

Vide Circular bearing number F. No. IFSCA/24/2024-Banking-FC/01 dated 04.04.2025, in reference to Notification dated March 25, 2021, IFSCA notified International Financial Services Centres Authority (Finance Company) Regulations, 2021 (hereinafter referred to as the “FC Regulations”). The authority then issued the ‘Framework for undertaking Global/Regional Corporate Treasury Centres Activities by Finance Company/Finance Unit in IFSC’ through a circular dated June 25, 2021. Present circular provides for updated Framework in order to encourage ease of doing business and bring alignment with international best practices CLICK HERE

• Amendment to the ‘Framework for Ship Leasing’ and relevant circulars

Vide Circular bearing number F. No. 496/IFSCA/FC/SLF/2025-26/01 dated 07.04.2025. Reference is drawn to circular no. F. No. 496/IFSCA/FC/SLF/2022-23/001 on “Framework for Ship Leasing” dated August 16, 2022 (hereinafter referred to as "Framework”) and to the circular no. F. No 496/IFSCA/FC/SLF/2024-25/02 on “Additional requirements for carrying out the permissible activities by Finance Company as a Lessor under ‘Framework for Ship Leasing’” dated May 8, 2024 (hereinafter referred to as “the Circular”) where the present circular decides to replace clause 3.L on Currency for Conduct of Business further the circular is amended by changing clause 2 as well. CLICK HERE

• Framework for Ship Leasing, updated as on April 07, 2025

Vide circular bearing number F. No. 496/IFSCA/FC/SLF/2022-23/001 updated as on 07.04.2025 which was earlier issued on August 16, outlines the IFSCA’s Framework for Ship Leasing in IFSCs. It classifies financial lease as a core activity and operating lease as a non-core activity under the Finance Company Regulations, 2021, and details eligibility, registration (via SWITs), and permissible activities for lessors. It incorporates key updates from March 22, 2023, and April 2, 2024, expanding permissible activities to include voyage charters and asset management services. CLICK HERE

• Revision to the requirement of meetings of the governing body of the IBUs in IFSC - Amendment to Governance Directions Module of GEN Directions - V 5.0 (IFSCA Banking Handbook).

Vide circular no. F No. IFSCA-FMPP0BR/8/2025-Banking/001 dated April 8, 2025, reference is made to Point 4 of Paragraph 3 in Module No. 2 on ‘Governance Directions (GOV)’ of the IFSCA Banking Handbook: General Directions – V 5.0 (GEN). The present circular replaces the said provision with the following:

“The governing body of the IBU shall meet at least once every quarter during the financial year, with the discretion to hold additional meetings as necessary.” CLICK HERE

• Fee structure for the entities undertaking or intending to undertake permissible activities in IFSC or seeking guidance under the Informal Guidance Scheme.

Vide circular bearing number IFSCA-DTFA/1/2025 dated 08.04.2025 the IFSCA introduces a unified fee structure for all regulated entities in GIFT City, covering application, registration, annual, and activity-based fees across banking, finance, capital markets, and insurance. Key sectors include payment service providers, fund managers, intermediaries, and finance units like GRCTCs and ITFS. Waivers are provided for ESG and ETF schemes. The framework promotes regulatory clarity, replaces earlier circulars, and aligns with IFSCA’s ease-of-doing-business goals. CLICK HERE

• Transition to IFSCA (Fund Management) Regulations, 2025

Vide circular bearing number F. No. IFSCA-IF-10PR/1/2023-Capital Markets/7 dated 08.04.2025 outlines the transition to the Fund Management Regulations, 2025, which extend PPM validity for Venture Capital and Restricted Schemes to 12 months (from 6) and reduce the minimum corpus to USD 3 million (from USD 5 million). Schemes recorded within 6 months before February 19, 2025, or with approved extensions ending on/after that date, may launch under the new regime. FMEs can re-file expired PPMs (before Feb 19, 2025) within 3 months, with no material changes except those aligning with the new regulations, and by paying 50% of the fresh filing fee. No processing fee applies for changes required due to Authority actions or regulatory updates. CLICK HERE

• Amendment to circular dated January 17, 2025 on the subject- ‘list of public holidays and banking business hours for IBUs

Vide circular bearing number F No. IFSCA-FMPP0BR/5/2025-Banking/2 dated 11.04.2025 reference is drawn to circular dated January 17, 2025 on the subject-‘ list of public holidays and banking business hours for IBUs’ (hereafter referred to as ‘Circular’) where the present circular amends clause 2 of the abovementioned circular as “The banking business hours of IBUs shall be from 10:00 a.m. to 5:00 p.m. during working weekdays and working Saturdays” CLICK HERE

• Amendment to the circular titled “Guidelines on setting up and operation of International Trade Finance Service Platform” dated December 23, 2024.

Vide circular bearing number FSCA-FCR0ITFS/3/2024-Banking/2025/001 dated 11.04.2025 reference is drawn to Guidelines on setting up and operation of International Trade Finance Service Platform dated December 23, 2024 (“Guidelines”) where the present circular amends clause 12(2) of the Guidelines effective from the date of this circular. It clarifies that AUM refers to the total market value of all financial assets owned or managed by the financier. Clause 12(2)(iii) is revised to require financiers to have proven credit/debt recovery capability (directly or via outsourcing), and Clause 12(2)(iv) now mandates that the financier be an incorporated entity engaged in factoring. A new Clause 12(2)(v) requires financiers and shareholders with over 10% stake to be from jurisdictions not listed by FATF as “High Risk Jurisdiction – subject to call for action.” CLICK HERE

• Guidelines on setting up and operation of International Trade Finance Service Platform - updated as on April 11, 2025

Vide circular bearing number IFSCA-FCR0FCR/3/2023-Banking/2024-25/ dated 11.04.2025 the present circular provides for revised guidelines on setting up and operation of International Trade Finance Services Platform issued under the IFSCA (Finance Company Regulations), 2021 is placed as Annex A to this circular. CLICK HERE

• Amendment to the circular titled “Framework for enabling Ancillary Services at International Financial Services Centres"

Vide circular bearing number eF. No. 51/IFSCA/PFPS0ANCI/1/2020-21 dated 17.04.2025 reference is drawn to SCA Circular No. 206/IFSCA/Anc. Aux/2020-21 dated February 10, 2021, and subsequent amendments issued vide circular dated June 10, 2021 and April 06, 2023 where the present circular amends clause 4.3 of Annexure I to the IFSCA (Ancillary Services) Framework, 2021. The present circular expands Clause 4.3 of the Ancillary Services Framework, 2021 to include trusteeship services for AIFs, InvITs, REITs, FIFs, security trust arrangements, and escrow services. It also permits trusteeship for schemes, including retail ones, launched by FMEs under the Fund Management Regulations, 2025, subject to 'fit and proper' criteria and compliance requirements. All other provisions remain unchanged. CLICK HERE

• Clarification on conducting Customer Due Diligence (CDD) and Maintenance of Supply Chain Integrity by the Vault Managers

Vide circular bearing number F. No. IFSCA-DMC0MSD/1/2024-Dept. of Metals and Commodities/01 dated 22.04.2025 reference is drawn to Conducting CDD by the regulated entities under the IFSCA (Anti Money Laundering, Counter Terrorist - Financing and Know Your Customer) Guidelines, 2022 (hereinafter referred to as ‘IFSCA (KYC/AML-CFT) Guidelines’) dated October 31, 2022; and Maintenance of Supply Chain Integrity as referenced in the IFSCA Circular on Operating Guidelines on Bullion Exchange, Bullion Clearing Corporation, Bullion Depository and Vault Manager dated August 25, 2021 (hereinafter referred to as ‘Bullion Guidelines’) where the present circular clarifies that Vault Managers must conduct Customer Due Diligence (CDD) on all customers, including overseas suppliers, and may rely on CDD done by the Bullion Depository, but must also perform independent checks. They must ensure logistics providers also conduct CDD on bullion suppliers. Additionally, Vault Managers must maintain the integrity of the bullion supply chain, ensuring bullion stays under authorized custody until received and vaulted. The Bullion Depository is responsible for compliance. CLICK HERE

• Clarifications on the Fee structure for the entities undertaking or intending to undertake permissible activities in IFSC or seeking guidance under the Informal Guidance Scheme.

Vide circular bearing number IFSCA-DTFA/2/2025 dated 23.04.2025 reference is drawn to o the IFSCA circular no. IFSCA-DTFA/1/2025 dated April 08, 2025 reference is drawn to the IFSCA circular no. IFSCA-DTFA/1/2025 dated April 08, 2025 where the present circular amends and clarifies the fee circular. CLICK HERE

• Amendment to the "IFSCA Operating Guidelines on Bullion Exchange, Bullion Clearing Corporation, Bullion Depository and Vault Manager – Dispensation of net-worth requirement for ‘Customers’

Vide circular bearing number IFSCA-DMC/3/2023-Dept. of Metals and Commodities dated 29.04.2025  Reference is drawn to the Operating Guidelines on Bullion Exchange, Bullion Clearing Corporation, Bullion Depository and Vault Manager issued by IFSCA vide Circular dated 25th August 2021, particularly definition of ‘Customer’ as provided in the Annexure I  where the present circular dispenses away with the  net worth requirement for all classes of ‘Customers’, however it further clarifies that he net worth requirement specified by IFSCA for Qualified Suppliers and Qualified Jewellers vide Circulars dated 18th August 2022 and 11th December 2023, respectively, shall continue to apply. CLICK HERE

PRESS RELEASES

• Vide a press release titled Infusing vibrance into the Bullion ecosystem at GIFT IFSC dated 29.04.2025 provides that IFSCA is boosting the bullion ecosystem at GIFT IFSC by extending trading hours on the India International Bullion Exchange (IIBX) from 9 AM to 9:30 PM, enhancing liquidity and timely utilization of funds. The newly notified Bullion Market Regulations, 2025 aim to improve price discovery, governance, and participation. Net worth requirements have been removed for most investors, easing access and encouraging wider participation, including retail. These steps strengthen GIFT IFSC’s position as a global bullion trading hub. CLICK HERE