Introduction
The year 2025 marked a pivotal chapter for GIFT IFSC, with the International Financial Services Centres Authority (‘IFSCA’) driving significant regulatory evolution. Through targeted amendments and comprehensive frameworks, IFSCA enhanced operational flexibility, investor protection, and global integration, positioning GIFT IFSC as a premier hub for cross-border finance, attracting fresh capital flows and institutional participation. Key changes included greater flexibility in aircraft and ship leasing to support domestic manufacturing, stricter cybersecurity and governance requirements, and new regulatory frameworks for capital market intermediaries, TechFin entities, ancillary service providers, and Global In-House Centres with streamlined registrations through SWIT. Market infrastructure reforms, the launch of the Foreign Currency Settlement System, and increased flexibility in fund management and ESG frameworks further strengthened transparency, competitiveness, and long-term market development.
These strides underscore 2025’s focus on transparency and competitiveness. Now, we go on to highlight some of the most important changes.
A Quick Recap of 2025
Guided by IFSCA’s vision to make GIFT IFSC a global finance leader, significant major updates were introduced across leasing, funds, markets, payments, and services contributing to increased market activity and investment inflows.
1.1. Amendment to Aircraft Lease Framework[1]
In February 2025, IFSCA issued a landmark amendment to the Aircraft Leasing Framework, significantly expanding the operating flexibility for IFSC-based aircraft lessors. While the core restriction on acquiring assets from Indian residents for purely domestic operations remains, the amendment introduces key carve-outs, permitting arm’s-length acquisitions, first-time import sale-and-leaseback transactions, and direct purchases from Indian aircraft manufacturers. This marks a shift from a restrictive regime to a more facilitative one, while still preserving regulatory safeguards.
Practically, this change aligns GIFT IFSC’s leasing ecosystem with India’s “Make in India” aerospace agenda. It lowers sourcing costs, improves transaction efficiency, and enhances access to domestic manufacturing, while leveraging IFSC advantages such as tax neutrality, SWIT approvals, and proximity to IBUs. Although implementation challenges remain around arm’s-length verification and timelines, the amendment is expected to drive FDI, strengthen ancillary aviation services, and position GIFT IFSC as a global aircraft leasing hub.
1.2. Amendment to the Ship Leasing Framework[2]
In 2025, IFSCA amended the Ship Leasing Framework to address practical inefficiencies faced by IFSC-based lessors under the earlier regime. The original framework, while comprehensive, imposed rigid currency and documentation requirements that limited flexibility, particularly in a volatile global shipping and forex environment. The amendment updates operational norms and relaxes currency-related constraints, allowing invoicing and payments in permitted foreign currencies and enabling the use of SNRR accounts, alongside simplified documentation for ship lease agreements.
These changes significantly improve ease of doing business for both financial and operating leases, aligning GIFT IFSC with global maritime finance practices. For stakeholders, the amendments enhance liquidity management, speed up settlements, and reduce compliance friction, strengthening GIFT IFSC’s position as a competitive maritime leasing hub. While multi-currency compliance will need careful monitoring, the reforms firmly support GIFT IFSC’s ambition to lead in sustainable and globally integrated maritime finance.
1.3 Transition to Fund Management Regulations, 2025[3]
In April 2025, IFSCA issued detailed transition guidelines for the Fund Management Regulations, 2025, marking a decisive shift towards a more mature and flexible alternative investment regime in GIFT IFSC. The earlier 2022 framework imposed relatively high entry barriers, including a USD 5 million minimum corpus for VC and Restricted Schemes, short PPM validity periods, limits on FME self-investment, and rigid requirements for open-ended schemes. These constraints often slowed fund launches and capital raising, particularly in uncertain market conditions.
The 2025 framework addresses these challenges by lowering minimum corpus requirements, extending PPM validity, permitting higher self-investment by FMEs with appropriate safeguards, and allowing open-ended schemes to begin operations with a smaller initial corpus. The transition mechanism further minimises disruption by enabling older and even expired PPMs to migrate smoothly under the new rules through SWIT with reduced or waived fees. Together, these measures enhance GIFT IFSC’s competitiveness, support innovation and employment in fund management, and create a balanced regime that promotes growth while maintaining investor protection.
1.4 Insertion of Third-Party Fund Management Services[4]
In 2025, IFSCA amended the Fund Management Regulations to allow FMEs in GIFT IFSC to manage third-party funds, expanding their business beyond self-managed schemes. FMEs must obtain IFSCA authorisation, be incorporated under approved structures, and appoint a full-time principal officer for each scheme. They also need to maintain additional net worth requirements to ensure investor protection.
This amendment enhances governance, accountability, and investor confidence while enabling FMEs to broaden their services and create employment opportunities. For GIFT IFSC, it stimulates activity in fund management, attracts clients, and strengthens the overall investment ecosystem, though timely regulatory approvals will be key for smooth implementation.
1.5. Capital Market Intermediaries Regulations, 2025[5]
On 17 April 2025, IFSCA notified the Capital Market Intermediaries Regulations, 2025, creating a comprehensive framework to regulate the burgeoning ecosystem of intermediaries in GIFT IFSC’s capital markets, a quantum leap from ad-hoc circulars to codified governance. The framework defines categories such as Research Entities and ESG Rating/Data Providers, with clear entry criteria including experienced Principal Officers, dedicated Compliance Officers, and minimum net worth requirements, all vetted through SWIT. It mandates ongoing compliance, segregation of research/advisory functions, and alignment with global standards.
This professionalises GIFT IFSC’s capital markets, supports informed trading, legitimises ESG research, and fosters innovation while maintaining stability. The regulations attract top-tier intermediaries, promote FDI, create jobs, and strengthen synergies across funds, broker-dealers, and rating agencies, positioning GIFT as a transparent, globally competitive capital markets hub.
1.6 Amendment to Regulatory Framework for Global Access in IFSC
In 2025, IFSCA strengthened the Global Access Framework (GAF) to provide a clear regime for Global Access Providers (GAPs), broker-dealers, and clients accessing international markets via GIFT IFSC. The framework defines key terms, sets authorisation procedures, prescribes ‘fit and proper’ criteria for GAPs, lists allowed client categories and products, and establishes operational obligations, including minimum net worth requirements for GAPs and broker-dealers.
A key amendment in September 2025 (Clause 39) addressed practical challenges in client fund handling by allowing GAPs and Introducing Brokers to open client accounts with IFSC Banking Units or authorised Payment Service Providers. This improves settlement speed, reduces costs by 20–30%, and enhances investor access and protection. The reform promotes seamless cross-border market participation, attracts high-net-worth investors, supports employment in trading and tech services, and integrates with GIFT’s banking and fund ecosystem, reinforcing its position as a global financial hub.
1.7 Framework on Stewardship Code[6]
In October 2025, IFSCA introduced the Stewardship Code for FMEs, institutional investors, AIFs, and retail funds in GIFT IFSC to strengthen investor protection, promote responsible oversight of investee companies, and drive sustainable value. Entities are now required to adopt a stewardship policy aligned with seven core principles: sustained engagement, responsible activism, transparent voting, conflict management, collaboration, timely disclosures, and staff training. Policies can follow IFSCA’s model or recognized international standards, with reporting via SWIT and periodic effectiveness reviews.
The framework enhances governance and accountability in GIFT IFSC, attracting long-term institutional investors such as pension and sovereign funds. Improved stewardship is expected to uplift investee company performance, boost investor confidence, support collaborative reforms, and generate employment in advisory and training services. Proportionality measures ensure smaller entities are not overburdened, though clear review metrics will be critical to prevent superficial compliance.
1.8 Foreign Currency Settlement System Launched by Hon’ble FM[7]
On 7 October 2025, Finance Minister Nirmala Sitharaman launched the Foreign Currency Settlement System (FCSS) at GIFT IFSC, approved under the Payment and Settlement Systems Act, 2007. Initially for USD transactions, FCSS allows IBUs to settle foreign currency deals locally rather than via slow overseas correspondent banks, reducing settlement times from 36–48 hours. CCIL IFSC Limited operates the system, with technology by IFTAS and Standard Chartered Bank (IFSC) as the first local settlement bank.
FCSS strengthens GIFT IFSC by enabling faster, safer, and more cost-efficient foreign currency settlements. It reduces reliance on overseas banks, lowers transaction costs, supports expansion to other currencies, and enhances integration across GIFT’s financial ecosystem, promoting efficiency and growth in cross-border finance.
1.9 IFSCA (Global In-House Centres) Regulations, 2025[8]
In December 2025, IFSCA notified the Global In-House Centres (GICs) Regulations, replacing the 2020 framework with a comprehensive regime for GICs in GIFT IFSC. The regulations define Financial Institution Groups (FIGs), permissible business models, and the SWIT-based registration process, while requiring key personnel to meet ‘fit and proper’ standards and mandating full-time principal and compliance officers in IFSC. GIC services are restricted mainly to non-resident group entities, with India-related revenue capped at 10%, ensuring export-oriented operations and new value creation. IFSCA can inspect, enforce, grant relaxations, and provide clarifications, and existing GICs have 90 days to transition.
These regulations are expected to attract major banks and global firms, enabling faster setup, boosting high-skilled finance and technology jobs, and strengthening GIFT’s banking and fund management ecosystem. Clear governance, compliance, and foreign-currency operational norms enhance oversight, while potential improvements in SWIT renewal processes could further ease doing business. Overall, this positions GIFT IFSC as a hub for global treasury, shared services, and high-value group operations, supporting long-term growth and international competitiveness.
Way Forward
As GIFT IFSC moves into its next stage of development, the focus is expected to shift from expanding regulations to ensuring their effective implementation and strengthening market activity. Key areas include leasing, fund management, TechFin, and capital markets, supported by SWIT efficiencies and capacity building within regulated entities. Maintaining high standards of compliance, cybersecurity, and governance will underpin stability and investor confidence, while attracting global capital and improving liquidity in secondary markets. Continuous cooperation with regulators, industry participants, and professional service providers will be critical to ensuring GIFT IFSC remains a transparent, resilient, and globally competitive financial centre.
This update is authored by our Partners, Rajul Bohra and Saurabh Sharma.
[1] Circular bearing number F. No. 172/IFSCA/Finance Company Regulations/2024-25/02, https://www.ifsca.gov.in/Document/Developments/revised-framework-on-aircraft-lease_new_final04032025100638.pdf
[2] Circular No. F. No. 496/IFSCA/FC/SLF/2025-26/01, https://www.caalley.com/ifsc25/revision-circular-07-04-202507042025081210.pdf
[3] Circular No. F. No. IFSCA-IF-10PR/1/2023-Capital Markets/7, https://www.caalley.com/ifsc24/accredited-investors-in-ifsc25012024021313.pdf
[4] Fund Management Regulations, 2025, https://ifsca.gov.in/CommonDirect/GetFileView?id=d09c93fc98191af1801a5914f31809ee&fileName=85-ifsca-fund-managemnet-regulations-202519022025125910.pdf
[5] International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2025, https://ifsca.gov.in/CommonDirect/GetFileView?id=d09c93fc98191af1801a5914f3190bcd&fileName=ifsca-cmi-regulations-202517042025051646.pdf
[6] Framework on Stewardship Code (FSC), https://ifsca.gov.in/CommonDirect/GetFileView?id=47a297ad49aaae8fa365313a911cc138&fileName=Circular_for_Framework_on_Stewardship_Code_in_IFSC_20251023_0701.pdf
[7] Hon’ble Finance Minister launches the Foreign Currency Settlement System, https://ifsca.gov.in/CommonDirect/GetFileView?id=2a38901cd710ed10d1660d1c301ae08e&fileName=Press_Release_FCSS_IFSCA_20251007_0332.pdf
[8] Global In-House Centres, https://ifsca.gov.in/Common/PreviewPdf?id=38fea9cc5969551d78bf00e670e2eeee&fileName=268967_20260101_0255.pdf
Rajul specializes in General Corporate Commercial, Mergers & Acquisitions, Domestic & Cross Border Investments, Corporate Restructuring and Compliance, Employment and Anti-Corruption & Investigation.