Unlocking Opportunities: What the New IFSCA Transition Circular Means for TechFin and Ancillary Services in GIFT City
- GIFT CFO
- Jul 31
- 5 min read
The IFSCA Transition Circular released on July 31, 2025, is a game-changer for businesses involved in TechFin and Ancillary Services at GIFT City IFSC. This regulatory update not only clarifies compliance guidelines but also opens new doors for innovation and growth in the financial technology sector. The changes are significant, and understanding them can enhance how companies operate in this dynamic environment.
This circular introduces the TechFin and Ancillary Services Regulations, 2025, redefining how both current and future players will engage in the market. For all involved, grasping these updates is key to navigating the evolving landscape of GIFT City.
New Applications: A Fresh Start
The new circular mandates that all new applicants follow the procedures outlined in the TAS Regulations, 2025. This change is more than procedural; it offers an essential opportunity for TechFin providers looking to make a mark in GIFT City.
To apply, interested parties must complete their applications using the template found in Annexure-I of the circular and submit them via email to :
By simplifying the application process, the IFSCA encourages fresh, innovative players to enter the market and comply with regulatory standards.
For example, a TechFin startup that specializes in blockchain-based lending can now easily navigate the application process, allowing it to focus on product development and market strategies.
Pending Applications: A Movement Forward
Existing applicants who submitted their applications under previous frameworks will also benefit from this update. These submissions will now be evaluated under the new TAS Regulations without the need for additional fees, assuming fees have already been paid.
This assurance is a positive development for businesses whose processes may have stalled. It reflects the IFSCA's commitment to facilitating a smoother transition for those ready to offer valuable services within the GIFT City ecosystem. A fintech company that has been awaiting approval can now move forward, knowing its application is valid under the new framework.
In-Principle Approvals: Time is of the Essence
For entities with in-principle approvals from the IFSCA, acting quickly is crucial. These companies must secure their Certificate of Registration (CoR) within 12 months, starting from July 8, 2025. If they miss this deadline, their approval will expire.
This timeline underscores the need for diligence. Companies should prioritize their application for CoR, ensuring they meet the new standards and continue their operations without disruption. For instance, a TechFin firm focused on payment solutions must prepare all necessary documents to comply with these new requirements.
Existing Operational Entities: A Transition Plan
Businesses currently operating under old regulations enjoy a critical grace period. They can continue under previous frameworks until they receive their CoR under the new TAS Regulations or until 12 months from the notification date—whichever happens first.
This leniency allows for a gradual transition. However, companies must remain attentive to deadlines to avoid losing their operational status. A digital wallet service can seamlessly adjust its offerings to meet the new regulations while continuing to operate during this phase.
Fee Structures as TechFin and Ancillary Services in GIFT City: A Consistent Approach
The fee structures outlined in the circular dated April 8, 2025, will continue to apply unless explicitly stated otherwise. This stability is essential for both current and prospective entities, allowing for better financial planning and resource allocation.
📌 Application Fee : 💵 USD 1,000 (One-time)
📌 Registration Fee: 💵 USD 2,500 (One-time)
📌 Annual Recurring Fee: 💵 Flat Fee: USD 2,500💵 Turnover-Based Additional Fee:
Annual Turnover (USD) | Additional Fee (USD) |
Less than 1 Mn | Nil |
$1 Mn – < $5 Mn | $2,500 |
$5 Mn – < $25 Mn | $5,000 |
$25 Mn – < $50 Mn | $7,500 |
Above $50 Mn | $10,000 |
This means your total annual fee will be USD 2,500 + turnover-based fee, depending on your revenue bracket.
📢 Clarifications for Existing Entities
If you're already operating under the previous Ancillary or FinTech Frameworks, only recurring fees are applicable.
You’ll pay this pro-rata, starting from when you receive your CoR under the TAS Regulations.
Until then, continue with the previous fee structure.
All terms from the earlier Fee Circular dated April 8, 2025, remain unchanged unless modified.
🚀 Why This is Good News
🎯 No surprise charges – complete transparency from the start
📉 Pro-rata adjustments – equitable billing for current participants
🌍 Low entry barrier – perfect for startups & international entrants
🧩 Unified regime – consolidates various services under one CoR
💼 Supports Innovation – particularly for Web3, AI, Blockchain, Metaverse & Risk Advisory companies
Understanding these fees is vital for seamless compliance and strategic growth. By maintaining consistent fee structures, the IFSCA fosters a regulatory environment that encourages innovation while ensuring businesses can plan effectively.
The Opportunities for TechFin Providers
The new regulations bring ample opportunities for both Indian and global TechFin providers. Here’s why engaging with the TAS framework is a smart move:
Streamlined Processes: The updated application requirements ensure a clearer and more efficient path into the market.
Regulatory Support: Companies aligning with the new regulations can expect robust support from the IFSCA, enhancing their operational capabilities.
These changes mean that a data analytics firm focused on risk assessment has a clear route to enter the GIFT City market, aligning itself with regulatory support, making it easier to scale.
Ancillary Services: An Expanding Ecosystem
This circular also creates opportunities for ancillary service providers, such as audit firms, legal advisors, and HR consultancies. Here are some insights for these entities:
Strategic Partnerships: Ancillary providers can collaborate with TechFin businesses, enhancing service delivery through combined expertise.
Increased Demand: As new TechFin firms emerge, demand for ancillary services will surge, creating a thriving ecosystem.
For example, an HR consultancy can develop tailored recruitment strategies for TechFin startups that require specialized skills to navigate the new regulatory landscape.
Embracing Change for a Brighter Future
The IFSCA Transition Circular represents more than updated regulations; it’s an invitation to foster innovation and collaboration within the TechFin and Ancillary Services sectors in GIFT City. By adapting to these changes, stakeholders can position themselves as leaders in a transforming marketplace.
The new TAS Regulations not only simplify the transition for newcomers but also create lasting opportunities in an increasingly competitive industry.
For all participants—whether they are new entrants or established firms—the need to embrace these transitions is critical for unlocking the diverse opportunities that lie ahead. As GIFT City evolves, staying informed and adaptable will be essential for sustainable success.
The moment is ripe for TechFin and ancillary service providers to capitalize on the dynamic environment of GIFT City. With strategic planning and a focus on innovation, the possibilities are limitless. Are you ready to take the leap?
Comments