IFSCA (TechFin and Ancillary Services) (Amendment) Regulations, 2026

OVERVIEW


  • The International Financial Services Centres Authority (IFSCA), vide notification dated 5th May 2026, amended the International Financial Services Centres Authority (TechFin and Ancillary Services) Regulations, 2025 to introduce a dedicated regulatory framework for Trust and Company Services Providers (TCSPs) operating in IFSC.

  • The amendment introduced Chapter VA and the Fifth Schedule under the regulation, prescribing the regulatory framework for TCSPs in IFSC GIFT City.

  • The framework covers registration, eligibility criteria, governance, compliance, reporting requirements, and permissible activities relating to leasing activities allowed by the Authority.

  • The amendment is expected to strengthen the credibility and regulatory framework of IFSC by establishing a structured regime for leasing-related and fiduciary service activities. It also aligns the regulatory framework with internationally accepted standards applicable to TCSP.
 

REGISTERATION OF TRUST AND COMPANY SERVICES PROVIDERS


  • The definition of TCSP has been introduced which means an entity which has been granted registration as Tech Fin and Ancillary Services Provider under these regulations to undertake Trust and Company Services Provider services for leasing activities permitted by the Authority.
  • The regulations mandate that entities intending to undertake TCSP services must obtain separate registration and maintain arm’s length segregation between TCSP activities and other services.
  • Eligible applicants must be incorporated in IFSC as companies or LLPs and promoters must not belong to FATF-designated high-risk jurisdictions.
 

GOVERNANCE AND CONTROL


 
  • Every Trust must establish an appropriate governing body to ensure an effective governance and oversight framework.

  • An internal audit or review mechanism must be implemented to periodically assess the adequacy of governance, controls, and compliance systems.

  • The service provider is required to maintain complete and updated records relating to clients, entities, key personnel, legal documentation, and services rendered.

  • Such records must remain readily accessible for regulatory inspection and preserved for a minimum period of five years from the termination of the client relationship.

  • Leasing-related services must operate through a separate and adequately resourced business unit.

  • Proper segregation of duties should be maintained to ensure that no single individual exercises end-to-end control over critical functions.
 

THE FIFTH SCHEDULE


 
  • The Framework introduced Fifth Schedule (Permissible Limits). A Trust and Company Services Provider may undertake one or more of the following services for leasing activities permitted by the Authority: 

  • i) acting as an agent for setting up trusts, companies, limited liability partnerships or any other body corporate;

  • ii) acting as or arranging for another person, as the case may be, to act as:  (a) trustee, in case of express trust or performing the equivalent function for any other type of trust; b) a director or company secretary or a nominee shareholder, in case of a company; (c) a partner or a designated partner, in case of limited liability partnerships; (d) any equivalent person, by whatever name called, in case of a body corporate;

  • iii) providing a registered office, business address, correspondence or administrative address for a trust, company or limited liability partnership or body corporate, as may be permitted by applicable law; 

  •  iv) any other services as may be permitted by the Authority.


REPORTING REQUIREMENT 


  • Any financial reporting by the TCSP to the Authority shall be in US Dollar, unless otherwise specified by the Authority

    CONCLUSION


     
    • The introduction of the TCSP framework under the IFSCA (TechFin and Ancillary Services) (Amendment) Regulations, 2026 is expected to significantly strengthen GIFT IFSC’s leasing and structured finance ecosystem.

    • The framework brings greater regulatory clarity, governance standards, and compliance oversight for entities involved in leasing-related and fiduciary services.

    • The regulatory clarity and enhanced governance standards are expected to attract global investors, leasing companies, and international service providers to establish operations in GIFT City.

    • Further, the framework will support the growth of sophisticated cross-border structures and strengthen GIFT IFSC’s reputation as a trusted and internationally aligned financial centre.   

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