Major Policy Advancements from the IFSCA Authority Meeting – 24 June 2025

The 24th IFSCA Authority Meeting: Driving Innovation in GIFT City

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The 24th IFSCA Authority Meeting, held on June 24, 2025, marked a significant leap in India’s ambition to position GIFT City as a world-class international financial hub. The Authority approved five major regulatory initiatives to boost capital markets, fund management, sustainability finance, TechFin innovation, and global engagement.

Let’s break down the key outcomes 👇

🔑 Key Highlights from the IFSCA Authority Meeting June 2025:

1️⃣ Framework for Transition Bonds

IFSCA has approved a dedicated “Transition Bonds” framework to help hard-to-abate industries, such as steel and cement, raise climate-focused capital. This framework encourages a commitment to a clear decarbonization path.

Key Pillars:

• Entity-level credible transition plans

• Alignment with global taxonomies

• Independent external reviews

• Initial and annual disclosures

  
  

📌 Why it matters: This initiative unlocks new ESG-aligned capital for developing nations like India, promoting GIFT City as a hub for sustainable finance.

2️⃣ Third-Party Fund Management Services (Platform Play)

The Authority has enabled Third-Party Fund Management Services. This allows foreign and domestic fund managers to launch Restricted Schemes in the International Financial Services Centre (IFSC) without needing a physical presence.

Key Features:

• Fund Management Entities (FMEs) to act on behalf of third parties

• Net worth requirement: USD 500,000

• Clear accountability, governance, and risk control mechanisms

• Fund cap: USD 50 million per scheme

  
  

📌 Why it matters: This move makes GIFT IFSC a globally competitive, low-cost platform for global fund managers.

3️⃣ IFSCA (TechFin & Ancillary Services) Regulations, 2025

A new unified regulation now governs TechFin and Ancillary Service Providers such as fund administrators, risk/cybersecurity advisors, and regulatory technology providers.

Key Provisions:

• Mandatory registration through the Single Window IT System (SWIT)

• Criteria to ensure companies are fit and proper

• Compliance roles defined

• FATF-blacklisted entities barred

• 24-month transition for existing players

  
  

📌 Why it matters: This framework will deepen India's role in Global Capability Centres and attract tech-savvy talent to GIFT.

4️⃣ Regulation-Making & Public Consultation Reforms

IFSCA has revamped its regulatory development process. Public consultation is now mandatory for all substantive policy regulations and subsidiary instruments.

Key Reforms:

• Wider scope of stakeholder consultations

• Flexibility for urgent matters

• Alignment with Union Budget 2023–24 vision

  
  

📌 Why it matters: These reforms introduce transparency, global best practices, and greater industry involvement into IFSC regulation-making.

5️⃣ IFSCA Joins IOPS as Governing Member

IFSCA has been inducted as a Governing Member of the International Organisation of Pension Supervisors (IOPS), headquartered in Paris.

📌 Why it matters: This enhances IFSCA’s global standing and fosters knowledge exchange in pension regulation.

🌍 The Road Ahead for GIFT City

The decisions made during the IFSCA Authority Meeting – June 2025 strengthen GIFT IFSC’s position as:

• A Green Finance Destination

• A Scalable Global Fund Management Hub

• A Tech-powered Financial Capability Centre

• A Transparent Regulatory Ecosystem

  
  

These initiatives pave the way for GIFT City to become a leading player in the global financial landscape. The framework for transition bonds will attract investments towards sustainable projects, making it a preferred choice for eco-conscious investors.

Innovation in fund management through third-party services will also lead to increased competition, benefiting investors and fund managers. This change could usher in a new era of efficiency and flexibility in fund operations.

The new regulatory environment for TechFin services promises to bolster India’s tech landscape. Enhanced governance and compliance measures will ensure that only capable players operate in this sphere.

📌 Conclusion

The IFSCA Authority Meeting – June 2025 decisions solidify GIFT IFSC’s standing as a hub for future-ready finance. The changes not only aim to stimulate investment but also ensure a robust framework that nurtures innovation.

Stay updated with all developments by visiting https://www.ifsca.gov.in for the official circulars and operational guidelines.

By positioning GIFT City strategically in the global market, India is not just creating financial opportunities but also committing to sustainable growth and responsible governance. This focus will undoubtedly attract more players to the international financial scene, encouraging a bright future for India's financial ecosystem.