IFSCA-Finanstilsynet MoU Strengthens Cross-Border Financial Regulation for GIFT City

On 13 February 2026, the International Financial Services Centres Authority of India and Finanstilsynet, the Financial Supervisory Authority of Norway, formalized regulatory cooperation through a Memorandum of Understanding. The agreement was signed by Mr. K. Rajaraman, Chairperson of the International Financial Services Centres Authority, and Mr. Per Mathis Kongsrud, Director General of Finanstilsynet. The MoU marks a significant step in strengthening cross-border supervision, regulatory alignment, and information sharing between India and Norway.

For financial institutions, investment managers, fintech firms, and compliance leaders operating in GIFT City, this development signals stronger global integration and enhanced regulatory credibility. For GIFT CFO professionals, the agreement reinforces the importance of global compliance readiness and governance excellence.

Understanding the Role of IFSCA in GIFT City

The International Financial Services Centres Authority is the unified regulator for financial services conducted in India’s International Financial Services Centres. It supervises banking, capital markets, insurance, fund management, aircraft leasing, fintech, and other cross-border financial activities operating from GIFT City in Gujarat.

Finanstilsynet is Norway’s integrated financial regulator. It oversees banks, insurance companies, securities markets, investment firms, and financial technology participants in Norway.

The MoU establishes a structured framework for cooperation in areas such as regulatory practices, enforcement, supervision, technology adoption, and market development.

Why the IFSCA-Finanstilsynet MoU Matters for GIFT City

GIFT City is positioned as India’s gateway to global financial markets. Regulatory partnerships with established jurisdictions like Norway enhance international trust and market access.

The MoU aims to

• Facilitate the sharing of information on regulatory trends and supervisory best practices

• Strengthen oversight of licensed and registered entities

• Promote high standards of integrity and fair dealing

• Support the enforcement of laws governing financial products and services

• Enable knowledge exchange on fintech and regulatory technology

For international investors and financial institutions, such agreements reduce regulatory uncertainty and improve cross-border cooperation in case of supervisory actions.

For CFOs operating from GIFT City, this increases the need for structured compliance systems aligned with global standards.

Impact on Financial Institutions in GIFT City

The agreement directly benefits entities operating in India’s International Financial Services Centre in the following ways

Improved Regulatory Confidence

When two regulators commit to information sharing and cooperation, it reduces gaps in supervision. This is particularly important for multinational banks, asset managers, and fintech firms operating across jurisdictions.

Enhanced supervisory alignment lowers reputational and operational risk for firms with cross-border exposure.

Stronger Enforcement Framework

The MoU facilitates cooperation in enforcing laws and regulations governing financial products and institutions. If a regulated entity operates in both jurisdictions, regulators can coordinate more effectively.

This supports transparent governance and discourages regulatory arbitrage.

Increased Scrutiny on Governance and Fitness

The MoU highlights the objective of promoting fitness and the properness of licensed or registered persons. This means leadership integrity, financial soundness, and compliance track records will face closer assessment.

CFOs and compliance officers must ensure

• Strong internal controls

• Documented governance frameworks

• Independent audit mechanisms

• Transparent reporting standards

  
  

Fintech and Regulatory Technology Collaboration

One of the most significant aspects of this MoU is its focus on technology and innovation.

The agreement includes cooperation on

• Financial technology applications

• Regulatory technology solutions

• Digital compliance monitoring

• Technology-driven supervision

GIFT City has been positioning itself as a fintech hub within India’s international financial services ecosystem. Collaboration with Norway, which has advanced digital banking and regulatory systems, supports innovation with oversight.

For fintech founders and financial institutions in GIFT City, this signals two key realities

First, innovation must align with regulatory expectations. Second, technology-based compliance solutions will gain importance.

CFOs will need to evaluate regtech tools for reporting, risk management, AML compliance, and cross-border transaction monitoring.

What This Means for Cross-Border Funds and Asset Managers

Norwegian institutional investors and asset managers have global exposure. With a formal cooperation mechanism in place, there is potential for

• Better coordination in fund supervision

• Improved information exchange on investment vehicles

• Enhanced trust for capital flows between jurisdictions

GIFT City already hosts alternative investment funds, global fund structures, and international asset managers. Regulatory cooperation strengthens investor confidence in fund governance and transparency.

For CFOs managing fund structures in GIFT City, compliance documentation and reporting quality will be critical differentiators.

Strengthening India’s Global Regulatory Network

This MoU is part of a broader strategy where India builds structured partnerships with global regulators. Each agreement expands India’s international regulatory footprint and supports GIFT City’s ambition to compete with established financial centres.

Key benefits include

• Improved supervisory coordination

• Reduced systemic risk through information exchange

• Enhanced global perception of regulatory stability

• Support for cross-border financial innovation

As more jurisdictions enter into similar arrangements, GIFT City becomes increasingly integrated into the global regulatory framework.

Governance Expectations for GIFT City CFOs

With greater regulatory cooperation comes higher governance expectations. CFOs operating in GIFT City should prioritize

1. Risk Governance Frameworks

Develop structured risk management policies covering market risk, credit risk, operational risk, and compliance risk.

2 Cross-Border Compliance Readiness

Ensure readiness for information sharing between regulators. Maintain accurate documentation, internal controls, and transparent reporting systems.

3 Technology Integration

Adopt regtech solutions that support automated compliance, regulatory reporting, and audit trails.

4. Board and Senior Management Oversight

Demonstrate clear accountability structures. Regulators increasingly evaluate whether financial institutions maintain effective board supervision.

A proactive compliance approach positions organizations ahead of regulatory changes.

Frequently Asked Questions About the IFSCA Finanstilsynet MoU

What is the purpose of the IFSCA Finanstilsynet MoU

The purpose is to establish cooperation between Indian and Norwegian regulators for sharing information, strengthening supervision, promoting fair dealing, and facilitating the enforcement of financial regulations.

How does the MoU affect financial institutions in GIFT City

It enhances regulatory credibility, increases supervisory coordination, and raises governance standards for institutions operating cross-border.

Does the MoU impact fintech companies

Yes. The agreement includes collaboration on financial technology and regulatory technology, which may influence compliance standards and innovation frameworks.

Will this lead to more foreign investment in GIFT City

Regulatory cooperation improves investor confidence and transparency, which can positively influence cross-border capital flows.

Strategic Outlook for GIFT City

The formalization of cooperation between India and Norway represents more than a symbolic regulatory gesture. It reflects a long-term commitment to international supervisory alignment and responsible financial innovation.

For GIFT City, this reinforces its role as a trusted international financial services center backed by structured regulatory partnerships.

For CFOs and financial leaders, the message is clear

Global integration requires global-grade governance. Compliance is no longer local. Technology and transparency define competitiveness.

Organizations that invest early in regulatory readiness, risk governance, and compliance infrastructure will benefit most from the expanding global network surrounding GIFT City.

As cross-border cooperation deepens, financial institutions based in India’s International Financial Services Centre must align their strategy with regulatory evolution. The IFSCA Finanstilsynet MoU is a step toward a more connected and accountable global financial ecosystem.

For GIFT CFO professionals, it is both an opportunity and a responsibility to lead from the front.

For more info, connect with CA Gaurav Kanudawala, founder of GIFT CFO.

Call: +919726372715 Email: info@giftcfo.com

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