Transforming Financial Services in IFSC

overview

• In April 2025, IFSCA introduced fee changes for fund managers, payment providers, and finance companies, while also updating turnover definitions and setting a 10-May-2025 deadline for differential fee payments.
• Separately, the Gujarat government eased liquor permit rules in GIFT City, allowing employees to apply directly for two-year permits without employer approval.
• These moves aim to simplify compliance, attract global talent, and boost investments and real estate growth in GIFT City.

IFSCA Fee Circular Changes

• Under the revised IFSCA Fee Circular issued in April 2025, fund management entities must now pay $500 for scheme modifications and $250 for changes in Key Managerial Personnel (KMP).
• For payment service providers (PSP/PSO), fees are now applicable separately for each activity. Late submission of periodic returns will attract a penalty of $100 per month per activity.
• Finance companies are also required to pay separate fees for each core activity they undertake.

Recurring Fee Updates & Compliance Deadlines

• The updated guidelines clarify that for IBUs, turnover will now be calculated based on daily fund and non-fund-based transactions.
• Stock exchanges will be charged an additional fee for turnover exceeding $150 billion. Entities must pay any applicable differential fees by 10-May-2025
• Additionally, new recurring fees will apply from the financial year following the year of registration.

GIFT City Liquor Policy Relaxations

• The recent relaxation in GIFT City’s liquor policy now allows employees to apply directly for liquor permits without requiring an employer’s recommendation.
• This change means that employees can apply directly to government officers, simplifying the process.
• The two-year permit validity is expected to attract more talent, enhance ecosystem vibrancy, and drive real estate growth in GIFT City.

Impact on Investments and Real Estate

• The liquor policy has played a key role in shaping the business environment in GIFT City, with developers acknowledging its positive impact.
• CREDAI has highlighted that the policy is instrumental in attracting companies and professionals to the region.
• Post-policy, real estate prices surged by up to ₹500/sq ft, boosting investment. Major companies like Morgan Stanley, JP Morgan, Infosys, LIC, and Oracle have strengthened GIFT City’s reputation as a business hub.

conclusion

• In April 2025, key developments in GIFT City, including the relaxation of liquor permit policies and changes in IFSCA fee structures, are set to significantly enhance the region’s business landscape.
• These updates will enhance investment, talent attraction, and real estate growth, reinforcing GIFT City’s status as a leading global hub for finance and business with clearer fees and a better environment for professionals.