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🔔 IFSCA Expands Scope of Trusteeship Services at IFSC

📅 Circular Date: 17 April 2025🏛️ Issued By: IFSCA📄


The International Financial Services Centres Authority (IFSCA) had introduced the Ancillary Services Framework back in 2021 to allow a broad range of professional services—legal, accounting, compliance, trusteeship, etc.—to support financial products and entities operating in GIFT City.



Now, with rapid evolution in the IFSC fund management ecosystem, IFSCA has responded to market feedback and expanded the scope of Trusteeship Services to keep pace with innovation and new financial structures.


🧾 What’s Changed in Trusteeship Service in GIFT ?


✅ Clause 4.3 (Trusteeship Services) of Annexure I has been substituted to provide greater clarity and flexibility.


Here’s a breakdown of the revised scope:

🔹 (a) Trusteeship Services – Now Covers More Than Ever Before

The updated clause now includes trusteeship services related to:

  • Alternative Investment Funds (AIFs)

  • Investment Trusts (defined to include:

    • Infrastructure Investment Trusts – InvITs

    • Real Estate Investment Trusts – REITs

    • Other similar trust-based structures)

  • Family Investment Funds (FIFs)

  • Security Trust arrangements

  • Escrow Agent services


📌 Key Highlight: The expansion acknowledges the diverse and growing role of trust structures in managing investments, security, and estate planning—especially relevant for HNIs, NRIs, family offices, and institutional investors operating from GIFT City.


🔹 (b) Trusteeship Services for Retail Schemes by FMEs

Trustees can now also serve:

“Various schemes, including retail schemes launched by Fund Management Entities (FMEs) registered under the IFSCA (Fund Management) Regulations, 2025.”

✅ But with important safeguards:

  • Must meet ‘fit and proper’ criteria

  • Follow prescribed code of conduct

  • Comply with all applicable regulations

📌 Why This Matters: This change is a game-changer for retail fund managers—especially those targeting global and NRI investors—who now have formal trusteeship support within IFSC.


📈 Impact on Stakeholders

🏦 For FMEs (Fund Managers):

  • Greater operational ease for launching retail products

  • More flexibility in choosing and working with trustees

🧑‍💼 For Professional Service Providers:

  • Opens up new business avenues in escrow, trust, and fund structuring

  • Enables multi-functional roles for licensed trustee firms in GIFT City

🌐 For Investors & NRIs:

  • Builds investor trust through regulated trusteeship layers

  • Enhances transparency and fiduciary oversight for cross-border funds


📌 Conclusion

With this amendment, IFSCA has future-proofed the Trusteeship Services framework, aligning it with global trends in fund governance, wealth structuring, and investor protection.

It’s yet another step in GIFT City’s journey toward becoming a world-class destination for funds, family offices, and capital market participants.

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🚀 Stay tuned with #GIFTCFO for more such regulatory insights and simplified breakdowns from the evolving GIFT IFSC ecosystem.

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