Brief Overview:
The entities aiming to provide ‘TechFin Services’ and ‘Ancillary Services’ in International Financial Services Centres are now required to obtain a certificate of registration from International Financial Services Centres Authority, and comply with the provisions of a unified framework. Further, existing service providers operating under the erstwhile frameworks in IFSCs have been provided a set time frame to obtain a certificate of registration.
Technical Details:
Applicability
The notification namely ‘International Financial Services Centres Authority (TechFin and Ancillary Services) Regulations, 2025’ dated 8th July 2025 (“Notification”) has been passed by the International Financial Services Centres Authority (“Authority”), to regulate ‘TechFin and Ancillary Service Providers’. The Notification consolidates and replaces the respective erstwhile frameworks issued by the Authority vide circulars dated 10th February 2021 and 27th April 2022 (collectively, “Existing Framework”).
Key Highlights
1) Companies, limited liability partnerships and partnership firms that deliver / endeavour to deliver ‘TechFin Services’ and ‘Ancillary Services’ in International Financial Services Centres (“IFSCs”) are required to apply for registration under the Notification (“Applicants”).
2) Such Applicants are required to obtain a certificate of registration from the Authority by applying through the Single Window IT System (SWIT).
3) Existing service providers operating under the Existing Framework have a transition period of up to 12 (twelve) months, which may extend up to 24 (twenty-four) months (upon approval of the chairperson of the Authority) from the date of the Notification to register. The existing service providers shall continue to be regulated by the Existing Framework up until obtainment of the certificate of registration envisaged under the Notification.
4) The ‘TechFin and Ancillary Service Providers’ must meet the ‘fit‑and‑proper’ criteria and abide by the ‘Code of Conduct’ as specified under Regulation 7 and the Fourth Schedule of the Notification.
5) Mandatory appointment of a principal officer and a compliance officer, both based in IFSC and working full-time with the ‘TechFin and Ancillary Service Provider’ has been promulgated.
6) ‘TechFin Services’ and ‘Ancillary Services’ may be rendered only to: (a) an ‘Intermediary’ or a ‘Service Recipient’, who is a ‘Non-Resident’ and is from an FATF-compliant jurisdiction, and (b) a ‘Resident’ for the purpose of establishing an IFSC presence / offshore office.
7) Non-compliance of the Notification may lead to initiation of any action as deemed fit by the Authority.
For further details, please see:
International Financial Services Centres Authority
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