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IFSCA Set to Streamline Ancillary and TechFin Services Framework!

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    The International Financial Services Centres Authority (IFSCA) has taken a significant step towards consolidating the Ancillary Services Framework (2021) and TechFin Framework (2022) into a single, unified framework. We summarize the key points to note in the draft IFSCA (TechFin and Ancillary Services) Regulations, 2025 below:

    1) New Permissible Activities Proposed to be Added:

    Ancillary Services:

    • Actuarial Services
    • Business Process Outsourcing (BPO)
    • Customer Care Support
    • Human Resource and Payroll Processing
    • Insolvency and Liquidation Support Services
    • Knowledge Process Outsourcing (KPO)
    • Risk Management and Mitigation
    • Supply Chain Management Support

    Tech-Fin Services:

    • Cloud Computing Services
    • Data Centre Operations
    • ERP Systems
    • Implementation of eGRC Software Platforms
    • IT services linked to the payment ecosystem

    2) Strengthening Governance:

    The appointment of a Principal Officer (PO) and Compliance Officer (CO) is now mandated in the draft regulations. The educational criteria for these roles have also been clearly specified, emphasizing qualifications like CA, CS, CMA, CFA, or relevant postgraduate degrees in finance, law, or business.

    3) Service Recipient:

    It is important to note that the requirement of Service Recipient being:

    • An entity in GIFT-IFSC
    • Any BFSI entity located outside India for the purpose of making arrangements for delivery of financial services specified by IFSCA
    • Indian entities solely for setting up offices in IFSC
      …still remains unchanged.

    🔗 Link to the Consultation Paper:
    Consultation Paper on draft IFSCA (TechFin and Ancillary Services) Regulations, 2025

    Comments are invited on the Consultation Paper until June 1st, 2025.
    Write to us at dhairya.c@treelife.in for discussion.

    About the Author
    Dhairya Chaniyara
    Dhairya Chaniyara
    Senior Associate | Tax & Regulatory | dhairya.c@treelife.in

    Focuses on direct tax and regulatory services with a specialization in GIFT IFSC. Brings experience from various industries, including manufacturing, FMCG, IT-ITES, and healthcare, to deliver impactful tax solutions.

    We Are Problem Solvers. And Take Accountability.

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