GIFT IFSC Newsletter December 2025

IFSCA Eases Rules for Fund Managers and GICs

• The IFSCA at its 26th meeting on December 22, 2025, approved regulatory reforms to improve ease of doing business at GIFT-IFSC while protecting investor interests.
• IFSCA has eased eligibility criteria for key managerial personnel (KMPs), introducing a certification-based pathway with lower experience thresholds. Fund management entities (FMEs) will now have extended fundraising timelines, with multiple six-month extensions for Private Placement Memorandums (PPMs) and a special three-month window for expired PPMs.
• A 24-month transition period has been provided for entities appointing IFSC-based custodians. Additionally, new regulations for GICs offer greater flexibility, including the use of third-party service providers.
• Further approvals include removal of minimum office space requirements for BATF service providers, rationalisation of capital market intermediary eligibility, net worth clarifications and timelines.

SEBI Permits Merchant Bankers to Operate in IFSC Without Separate Subsidiary

• On December 3, 2025, SEBI notified the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2025, allowing SEBI-registered merchant bankers to operate in the IFSC without the need to establish a separate subsidiary.
• The amendment enables merchant bankers to carry out IFSC-related activities through Strategic Business Units (SBUs). This reform broadens the scope of permissible financial services, including fee-based and cross-regulatory activities, while ensuring strict capital ring-fencing for the core merchant banking business.
• The change aims to reduce compliance and operational costs for merchant bankers, thereby facilitating smoother entry into the IFSC ecosystem. By simplifying regulatory requirements, the amendment strengthens India's position within the GIFT City IFSC, enhancing its global financial services appeal.

IFSCA Standardizes Liquid Net Worth for Intermediaries

• On December 30, 2025, IFSCA released a circular that outlines clear criteria for assets considered under liquid net worth. The IFSCA has clarified the definition of liquid net worth to focus solely on eligible liquid assets like cash, fixed deposits, and government securities, excluding illiquid assets such as fixed assets and long-term receivables.
• This revision aims to standardize the calculation of liquid net worth for capital market intermediaries, ensuring compliance with more consistent liquidity measurement.
• The new formula for liquid net worth is: Liquid Net Worth = Eligible Liquid Assets – Current Liabilities. The changes take effect immediately, prompting firms to reassess their balance sheets to ensure compliance.
• The revision strengthens the focus on deployable capital to meet regulatory obligations during market fluctuations.

Bank of Baroda Underwrites $500 Million Loan for ONGC Videsh at GIFT City

• Bank of Baroda has underwritten a $500 million, five-year foreign currency term loan for OVL Overseas IFSC Limited (OOIL), a subsidiary of ONGC Videsh Limited (OVL), registered at GIFT City IFSC.
• The loan, arranged by Bank of Baroda as the sole mandated lead arranger, is a significant milestone in GIFT City's role as a growing global financial hub. By leveraging the IFSC framework, OOIL can access competitive global capital, supporting ONGC Videsh's international expansion strategy.
• This transaction demonstrates GIFT City's increasing importance in facilitating cross-border financing, with Indian banks like Bank of Baroda playing a pivotal role in syndicated lending and trade finance.
• Bank of Baroda’s IFSC Banking Unit, a key part of its international presence, showcases the bank's commitment to deepening its involvement in GIFT City, contributing to its emergence as a premier jurisdiction for offshore financing.

Neo Asset Management Unveils India’s First Multi-AMC Fund from GIFT City

• Neo Asset Management, part of the Neo Group, has launched India’s first independent multi-asset management company (AMC) fund, the India All-Cap Core Equity Fund, based in GIFT City.
• This open-ended, multi-manager Fund of Funds (FoF) is designed to provide global investors with diversified exposure across large, mid, and small-cap Indian equities.
• With a target of raising USD 100 million, the fund offers tax-efficient access to India’s growth story, operating within IFSCA framework. Offshore investors, including foreign institutions, NRIs, dual citizens, and high-net-worth individuals, can participate with a minimum investment of USD 150,000.
• This launch further enhances GIFT City's position as a global financial services hub, offering a regulated and tax-efficient route for international investors to access Indian equities.

Berkley Insurance Becomes First Dual-Licensed P&C Insurer in GIFT City

• Berkley Insurance’s GIFT City branch has become the first property and casualty (P&C) insurer in the jurisdiction to hold both insurance and reinsurance licences, following approval from the IFSCA.
• This dual-licence status allows Berkley to issue policies to entities in GIFT City and other special economic zones (SEZs), as well as engage in reinsurance placements for Indian and cross-border risks.
• The branch is focusing on specialty lines, including financial lines such as directors & officers, cyber, casualty, professional indemnity, specie, and marine insurance, with plans to expand its reinsurance operations by FY26.
• Berkley’s move from Tier IV to Tier II in India’s reinsurance placement hierarchy positions the branch ahead of reinsurers, enhancing its access to domestic market opportunities.

IFSCA and IIT Gandhinagar Collaborate to Enhance GIFT IFSC’s FinTech Ecosystem

• On December 16, 2025, the IFSCA and IIT Gandhinagar (IITGN) signed an MoU to strengthen the FinTech ecosystem at GIFT IFSC.
• The collaboration focuses on talent development through the GIFT International FinTech Institute (GIFT IFI), supporting startups and fostering innovation via IFSCA’s Regulatory and Innovation Sandbox.
• IITGN will provide specialized academic programs and research to meet GIFT City’s needs, contributing to India’s goal of becoming a global leader in FinTech by 2047.
• The partnership also supports emerging technologies like AI and quantum computing, while promoting the "onshoring" of financial services back to India.
• The interdisciplinary research at IITGN enhances the competitiveness of India’s financial markets, generating significant social and economic impact.

Taiwan inks MOU with IFSCA for bilateral supervisory cooperation

• On December 3, 2025, the IFSCA and Taiwan’s Financial Supervisory Commission (FSC) signed a MoU to enhance regulatory cooperation and deepen financial ties between GIFT IFSC and Taiwan.
• The MoU aims to facilitate information-sharing on market developments, regulatory practices, and business structures, supporting smoother cross-border financial services.
• This agreement is expected to foster the establishment of Taiwanese financial institutions in GIFT City, with CTBC Bank and Taipei Fubon Commercial Bank already seeking approval to open branches.
• The MoU also strengthens the regulatory framework for cross-border capital flows, enabling collaboration in fintech, digital finance, and innovative financial products between India, Taiwan, and global markets.

GIFT City & Henox Group Sign MoU for ₹1,317-Crore Cable Landing Station

• The Gujarat government has signed a ₹1,317 crore Memorandum of Understanding (MoU) with Henox IT and Data Centre to establish a cable landing station in the Dhuvaran region of Anand district, enhancing GIFT City’s role as a key digital hub.
• This initiative will provide faster and more resilient global connectivity, positioning Gujarat as a gateway for international data traffic and strengthening GIFT City’s infrastructure for hyperscale and enterprise data centres.
• The project will support the growth of AI/ML start-ups, fintech platforms, and global capability centres within GIFT City.
• The state government also launched AI stack solutions and cloud adoption guidelines to boost digital services across departments, further solidifying GIFT City's position as a global digital services and technology hub.

Indian Overseas Bank Gets RBI Nod For IFSC Banking Unit

• Indian Overseas Bank (IOB) has secured approval from the Reserve Bank of India (RBI) to establish an International Financial Services Centre (IFSC) Banking Unit at GIFT City.
• This approval, granted on December 29, 2025, will allow IOB to offer specialized services such as foreign currency transactions, trade finance, corporate banking, and treasury operations, without the constraints of domestic regulations, thereby enabling the bank to compete more effectively in the global market.
• The announcement was filed with the stock exchanges, ensuring transparency and regulatory compliance. This expansion into GIFT City’s favorable infrastructure and regulatory environment is expected to boost IOB’s international operations and contribute to its overall growth.