OVERVIEW

• The International Financial Services Centres Authority (IFSCA), headquartered in GIFT City, Gandhinagar, has issued a Request for Proposal (RFP) for the development of a Digital Regulatory Reporting (DRR) System on June 9, 2025. This step reflects IFSCA’s broader vision of building a technology-enabled regulatory framework under its Supervisory Technology (SupTech) initiative.
• Key objectives of the DRR system:
• Enhance Ease of Doing Business (EoDB)
• Digitally streamline regulatory compliance for entities in the IFSC
• Build a robust and automated reporting architecture
• Position IFSCA as a global best-practice regulator

Strategic impact

1. For the Regulatory Ecosystem

• Standardized Reporting Protocols: A centralized DRR system will standardize data submission and reduce manual intervention.
• Real-Time Monitoring: Regulators will be able to monitor compliance and risk exposure across financial institutions more proactively.
• Audit Trail & Data Integrity: Every submission will be digitally recorded, reducing scope for manipulation or delay.
  
  2. For IFSC Regulated Entities
  
• Lower Compliance Costs: Automation reduces human error and recurring documentation burdens.
• Faster Approvals & Reporting: Time-sensitive filings and approvals will be processed more efficiently.
• Improved Regulatory Clarity: Consistent digital interfaces will help clarify compliance obligations and reduce ambiguities.
  
  3. For GIFT City’s Global Competitiveness
  
• Aligns GIFT IFSC with global financial centres such as Singapore, Dubai IFSC, and London in terms of regulatory infrastructure.
• Helps attract foreign investors, fintech startups, and global fund managers who value regulatory clarity and automation.
• Showcases India’s push toward ‘Smart Regulation’ and its ambition to emerge as a regional regulatory hub.

Final outlook

• The DRR initiative is more than a tech upgrade, it represents a strategic shift in how regulation is approached in India’s international financial ecosystem. Here’s what to expect:
• RegTech Maturity: It will pave the way for future innovations like AI-led risk analysis, predictive supervision, and integrated regulatory sandboxes.
• Cross-Border Compatibility: DRR architecture can become interoperable with international reporting standards (e.g., IOSCO, FATF, IFRS), enhancing India’s compliance image.
• Investor Confidence: A transparent and efficient reporting system boosts institutional trust, paving the way for deeper capital market integration and broader participation.

CONCLUSION

• The launch of IFSCA’s Digital Regulatory Reporting (DRR) system marks a pivotal step toward building a transparent, technology-driven regulatory environment in GIFT City. By streamlining compliance and supervision through a unified digital interface, IFSCA is not only reducing the operational burden on regulated entities but also reinforcing its vision to become a world-class regulator. This initiative positions GIFT IFSC as a modern, globally aligned financial centre which is ready to attract quality international participation and set new benchmarks in regulatory innovation.