ARTICLE
4 August 2025

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

AC
Aurtus Consulting LLP

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The International Financial Services Centres Authority (IFSCA) has recently issued the International Financial Services Centres Authority...
India Finance and Banking

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

List of Permissible Activities under Ancillary Services 
  • Actuarial Services
  • Advisory Services
  • Assets Management Support Services
  • Auditing Services
  • Business Process Outsourcing
  • Compliance management support services
  • Customer care support services;
  • Enterprise governance related support services
  • Fund Administration Services including fund accounting
  • Human Resource and Payroll processing
  • Legal Services
  • Insolvency professional services and liquidation related support services;
  • Knowledge process outsourcing
  • Legal process outsourcing
  • Management Consulting Services
  • Broking services for leasing activities permitted in IFSC
  • Marketing support services
  • Secretarial Services
  • Broking services for leasing activities permitted in the IFSC
  • Supply Chain management support
  • Trusteeship services
  • Valuation Services
  • Voice broking for banking services.
  • Family Office support services
  • Global mobility services (Immigration support services) for students and employees of foreign countries intending to study and work at IFSC respectively;
  • Centre of excellence / offshore development centre/ financial capability centre to provide research and development support services (excluding R&D support in technology); skill development, training and certification services to employees working in the IFSC and individuals/entities from foreign country;
  • Any other services as may be permitted by the Authority from time to time
List of Permissible Activities under Techfin Services
  • Accelerators
  • Agri Tech
  • Big Data & Analytics
  • Climate, Green and/or Sustainable Tech
  • Cloud Computing Services
  • Cyber security, cyber security architecture and cyber risk management services
  • Application development and maintenance
  • Automation and Robotic Process automation
  • Enterprise Resource Planning (ERP) systems
  • Implementation of enterprise Governance, Risk and Compliance (eGRC) software platforms;
  • Information Technology infrastructure & cloud insurance
  • Management of IT infrastructure and technology services associated with payment system ecosystem;
  • Outsourced services, which are not covered in this Schedule but are permitted to be outsourced by the entity regulated by any financial sector regulator of its home jurisdiction;
  • Regulatory Tech;
  • Services and operations related to data centres;
  • Solutions or services provided by leveraging AI/Web 3.0, Machine Learning etc.
  • Space tech
  • Supervisory Technology;
  • Technology solution aiding trade finance;
  • Technology solution supporting digital banking;
  • Technology solutions including IT related development, enhancement, maintenance and support services;
  • Tokenization support services;
  • Centre of excellence, Offshore development centre, Technology capability centre to provide R & D support in technology;
  • Any other services as may be permitted by the Authority from time to time.  

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.

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