GIFT City Updates (August 2025)

PRESS RELEASE

• Report of the Expert Committee on ‘Positioning GIFT IFSC as Global Commodity Trading Hub’

On Aug 02, 2025, the Expert Committee’s report to IFSCA outlined India’s need for a competitive commodity trading ecosystem to reduce offshoring and strengthen strategic leverage in global markets. Key recommendations include regulatory enablement (notification of commodity trading as financial services, expansion of permitted OTC and exchange-traded derivatives, re-invoicing in IFSC), policy alignment (FEMA amendments for centralized hedging, ROFR on government procurement, voyage charter permissions), and banking/tax incentives (broader bank trading activity, extended tax holidays, concessional regime for overseas professionals). Infrastructure proposals include new warehousing/logistics facilities near ports and customs exemptions for IFSC entities. Financial innovation measures cover structured finance, trade finance bond listings, and CBDC use for trade, while ecosystem development targets attracting global financial institutions, engaging overseas traders, and workforce incentives. Recommendations align with India’s Viksit Bharat 2047 vision; IFSCA will consult the government and other agencies on implementation. The full Expert Committee Report is published on the IFSCA website CLICK HERE.

• Master Circulars on Capital Market Intermediaries

IFSCA has issued Master Circulars on Aug 05, 2025 for seven categories of capital market intermediaries in IFSC under the new 2025 regulations, covering credit rating agencies, debenture trustees, distributors, ESG ratings/data providers, investment advisers, investment bankers, and research entities. These circulars consolidate all applicable guidelines and clarify operational aspects like registration, permitted activities, governance, compliance (KYC/AML/CFT), outsourcing, complaint handling, reporting, cyber security, and surrender of registration—aimed at streamlining business and ensuring market transparency in IFSC CLICK HERE.

• Fund Management ecosystem at GIFT-IFSC records robust growth amid IFSCA’s progressive regulatory reforms

On Aug 07, 2025, IFSCA has driven robust growth in GIFT-IFSC’s fund management ecosystem through progressive reforms and industry engagement, notably revising Fund Management Regulations in 2025, and enabling angel schemes, sovereign fund exemptions, accredited investor frameworks, NRI/OCI FPI routes, co-investment SPVs, and third-party fund management. As of June 30, 2025, 177 FMEs have launched 272 schemes, attracting USD 22.11 billion in commitments (40.5% QoQ growth), USD 10.5 billion funds raised (31.9% growth), and USD 11.27 billion invested, with 85% of investments directed to India. The number of investors in Restricted Schemes exceeds 3500 from over 60 jurisdictions, and retail scheme authorisations have begun. IFSCA maintains rigorous supervisory mechanisms to uphold compliance and investor protection, cementing IFSC’s position as a preferred global investment gateway to India CLICK HERE.

• Revamped Regulatory Framework for Global Access

The IFSCA on Aug 12, 2025, rolled out a revamped regulatory framework for Global Access in IFSC to facilitate seamless participation of Indian investors in overseas markets under the LRS route. The framework ensures investor protection through mandatory presence of brokers and access providers within IFSC, subject to IFSCA regulation. It is also designed to onshore broker-dealer and proprietary trading activity currently routed through foreign jurisdictions. By prescribing clear norms for Global Access Providers and Introducing Brokers, the framework strengthens market integrity while positioning IFSC as India’s gateway for cross-border capital flows CLICK HERE.

• Enablers for Trade Finance

On Aug 29, 2025, IFSCA positioned GIFT IFSC as a hub for global trade finance, enabling banks and finance companies to offer trade credit, factoring, forfaiting, and multicurrency syndicate loans, with IBUs disbursing USD 13.79 billion by June 2025. Finance companies and digital ITFS platforms—handling growing volumes and on-boarding global financiers—expand lending, receivables assignment, and competitive bidding. IFSCA aligns regulations with international bodies for broader access, sets sustainable finance targets, and permits exporters to raise capital through foreign currency/masala bonds listed in IFSC at a 9% withholding tax rate. IFSC insurance offices provide trade credit, political risk, and other export insurance, reinforcing risk mitigation and efficiency in cross-border trade CLICK HERE.

CIRCULARS

• Master Circular for Credit Rating Agencies

IFSCA issued this master circular on Aug 05, 2025, which consolidates the regulatory framework under the IFSCA (Capital Market Intermediaries) Regulations, 2025, replacing the previous circular from October 2024. Key provisions include mandatory registration through the Single Window IT System (SWITS), permitted activities such as credit rating (private, sovereign), research, valuation, monitoring, and governance requirements like appointing Principal and Compliance Officers and adherence to IOSCO principles. The circular also sets operational guidelines covering rating processes (solicited and unsolicited), disclosure, conflict of interest, cybersecurity, KYC/AML compliance, reporting, outsourcing policies, and provisions for surrender of registration. This circular is crucial for SEBI-registered CRAs entering IFSC and existing IFSC-registered CRAs to align governance, operational, and disclosure standards with IFSC norms, thus providing clarity and ease of doing business in GIFT IFSC CLICK HERE.

• Master Circular for Debenture Trustees

Master on Aug 05, 2025, consolidates the regulatory framework under the IFSCA (Capital Market Intermediaries) Regulations, 2025. It covers registration through the Single Window IT System (SWIT) with perpetual validity subject to compliance, and permits debenture trustees to act for debentures issued or listed in IFSC or foreign jurisdictions. The circular mandates governance with designated Principal and Compliance Officers, requires strict adherence to KYC, AML, and CFT norms, and sets detailed due diligence, monitoring, and default handling procedures. It emphasizes robust complaint handling, conflict of interest policies, cybersecurity, outsourcing rules, and requires disclosure of change in control with prior approval when applicable. Overall, it aims to enhance transparency, investor protection, accountability, and ease of doing business for debenture trustees operating within GIFT IFSC CLICK HERE.

• Master Circular for Distributors

Master Circular dated Aug 05, 2025, consolidating the regulatory framework under the IFSCA (Capital Market Intermediaries) Regulations, 2025. The circular mandates registration through the Single Window IT System (SWIT) with perpetual validity subject to compliance, permitting distributors to conduct distribution activities of capital market products within approved foreign jurisdictions. It requires appointment of a Principal Officer and Compliance Officer based in IFSC, compliance with KYC, AML, and CFT norms, and adherence to a prescribed Code of Conduct including advertisement and conflict of interest policies. The circular also covers client agreements, segregation of client and proprietary accounts, fee disclosures, robust complaint handling and grievance redressal mechanisms, quarterly reporting, annual compliance audits, cybersecurity, and procedures for change in control and surrender of registration. Overall, it aims to enhance transparency, investor protection, accountability, and ease of doing business for distributors operating within GIFT IFSC CLICK HERE.

• Master Circular for ESG Ratings and Data Products Providers

Master Circular dated Aug 05, 2025, consolidating the regulatory framework under the IFSCA (Capital Market Intermediaries) Regulations, 2025. It mandates registration through the Single Window IT System (SWIT) with perpetual validity subject to compliance. The circular requires appointment of a Principal Officer and Compliance Officer with defined qualification criteria and adherence to a Code of Conduct emphasizing transparency, governance, and conflict of interest management aligned with international standards. It enforces strict KYC, AML, and CFT compliance, periodic reporting, annual audits, and robust cybersecurity measures. The circular aims to ensure transparency, accountability, investor protection, and the facilitation of sustainable and reliable ESG rating services within GIFT IFSC CLICK HERE.

• Master Circular for Investment Advisers

Master Circular dated Aug 05, 2025, consolidating the regulatory framework under the IFSCA (Capital Market Intermediaries) Regulations, 2025. It mandates registration through the Single Window IT System (SWIT) with perpetual validity subject to compliance. The circular permits Investment Advisers to provide investment advice to clients in India, IFSC, or foreign jurisdictions, with compliance to FEMA for Indian residents. It requires appointment of a Principal Officer and Compliance Officer based in IFSC, adherence to a prescribed Code of Conduct, and strict compliance with KYC, AML, and CFT norms. The circular also addresses client agreements, risk profiling, conflict of interest management, reporting and audits, cybersecurity, complaint handling, change in control procedures, and surrender of registration. Overall, it aims to foster transparency, investor protection, accountability, and ease of doing business for Investment Advisers within GIFT IFSC CLICK HERE.

• Master Circular for Investment Bankers

Master Circular dated Aug 05, 2025, consolidating the regulatory framework under the IFSCA (Capital Market Intermediaries) Regulations, 2025. The circular mandates registration through the Single Window IT System (SWIT) with perpetual validity subject to compliance, and defines permissible activities such as managing securities issuance, underwriting, private placements, mergers and acquisitions advisory, and corporate restructuring within IFSC and foreign jurisdictions. It requires appointment of a Principal Officer and Compliance Officer based in IFSC, adherence to KYC, AML, and CFT norms, and a prescribed Code of Conduct emphasizing ethical behavior, conflict of interest management, and transparency. The circular also prescribes periodic reporting, annual compliance audits, cybersecurity and cyber resilience frameworks, grievance redressal mechanisms, and procedures for change in control and surrender of registration. Overall, it aims to ensure transparency, investor protection, accountability, and operational integrity for investment bankers in GIFT IFSC CLICK HERE.

• Master Circular for Research Entities

Master Circular dated Aug 05, 2025, consolidating the regulatory framework under the IFSCA (Capital Market Intermediaries) Regulations, 2025. It mandates registration through the Single Window IT System (SWIT) with perpetual validity subject to compliance. The circular permits research entities to provide research reports on securities, with restrictions on reports concerning Indian listed securities only for non-resident clients. It requires appointment of a Principal Officer and Compliance Officer, adherence to a Code of Conduct emphasizing ethics, transparency, and conflict of interest management, and strict compliance with KYC, AML, and CFT norms. The circular also mandates quarterly reporting, annual audits, and robust cybersecurity measures. Overall, it aims to ensure transparency, accountability, investor protection, and operational integrity for research entities in GIFT IFSC CLICK HERE.

• Onboarding of certain categories of the Regulated Entities to the Central Registry for registration and satisfaction of assignment of receivables transactions

Circular dated Aug 07, 2025, mandating onboarding of certain regulated entities in the IFSC to the Central Registry for registration and satisfaction of assignment of receivables transactions, as per Section 19 of the Factoring Regulation Act, 2011 and Regulation 6 of IFSCA (Registration of Factors and Registration of Assignment of Receivables) Regulations, 2024. Entities including IFSC Banking Units, IFSC Banking Companies, IFSC Finance Companies/Units, and IFSC TReDS are required to register with the Central Registry (CERSAI) to comply with legal requirements for assignment of receivables filings. User manuals for onboarding and transaction registration are available on the CERSAI portal. Support is provided through CERSAI’s helpdesk contacts. The circular is effective immediately under IFSCA’s statutory powers CLICK HERE.

• Regulatory Framework for Global Access

The Circular dated Aug 12, 2025 introduces a revamped regulatory framework for Global Access in the IFSC, designed to enable seamless participation of Indian investors in overseas markets under the Liberalised Remittance Scheme (LRS) route. It mandates the mandatory presence of brokers and Global Access Providers within IFSC, regulated by IFSCA, to protect investor interests and enhance market integrity. The framework applies to Global Access Providers, broker dealers, and clients accessing foreign financial products through IFSC and allows access only to financial products listed on recognized overseas stock exchanges. Key obligations include segregated client funds, robust KYC/AML compliance, dedicated webpage disclosures, monitoring of trading activity, immediate reporting of regulatory actions against foreign brokers, and compliance audits. The framework aims to "onshore" cross-border broker-dealer activity, providing a competitive, transparent, and globally aligned environment, positioning IFSC as India's gateway for cross-border capital flows CLICK HERE.

• Opening of an account of a person resident in India

The Circular dated Aug 13, 2025 clarifies that International Banking Units (IBUs) in IFSC may open foreign currency accounts for persons resident in India without prior permission from IFSCA. The circular extends the definition of “foreign currency account with a bank outside India,” as per FEMA Regulations, 2015, to include accounts opened with IBUs in specified foreign currencies. This simplifies and streamlines the onboarding process for Indian residents, enhancing their access to international banking services through IFSC. The circular is effective immediately under the authority granted by Sections 12 and 13 of the IFSCA Act, 2019 CLICK HERE.

REGULATION

• International Financial Services Centres Authority (Fund Management) Regulations, 2025 (Amended up to July 30, 2025)

Publish detailed on August 11, 2025, these Regulations establish a comprehensive framework for fund management entities operating within the IFSC, detailing requirements for registration, eligibility, governance, and risk management. They define permissible fund structures, investment norms, and disclosure obligations to promote transparency and safeguard investor interests, while also addressing overseas participation, compliance mandates, and fiduciary responsibilities of fund managers. Amendments notified up to 30 July 2025 introduce greater flexibility for platform-based and third-party involvement, and align reporting standards with global best practices, thereby strengthening regulatory oversight and operational resilience within the GIFT IFSC CLICK HERE.