IFSCA Reforms Boost GIFT-IFSC as Global Hub for GICs & BATF

IFSCA Reforms Boost GIFT-IFSC as Global Hub for GICs & BATF. The International Financial Services Centres Authority (IFSCA), at its 26th Authority Meeting held on 22 December 2025, approved a series of landmark regulatory reforms aimed at significantly strengthening GIFT-IFSC as a global hub for high-value financial and professional services. These reforms represent a strategic shift towards making India’s first International Financial Services Centre more competitive, flexible, and aligned with global regulatory standards. The key approvals include the IFSCA (Global In-House Centres) Regulations, 2025 and important amendments to the Book-keeping, Accounting, Taxation and Financial Crime Compliance Services (BATF) Regulations, 2024, both of which are expected to substantially improve the ease of doing business within IFSC.
Together, these reforms reflect IFSCA’s long-term vision of attracting global financial institutions, encouraging onshoring of India-centric financial services, and creating high-quality employment opportunities at GIFT City.
Learn more more about SEBI relaxes regulations for stock brokers in gift city.
Revamped IFSCA (Global In-House Centres) Regulations, 2025
The newly approved GIC Regulations, 2025 introduce a comprehensive, modern, and globally aligned regulatory framework for the establishment and operation of Global In-House Centres (GICs) at GIFT-IFSC. These centres are intended to act as strategic service hubs for financial institution groups, delivering high-value services such as financial operations, technology development, data analytics, risk management, regulatory compliance, and other specialised support functions.
By providing a clear and enabling regulatory environment, the new framework strengthens GIFT-IFSC’s position as a preferred destination for global financial institutions seeking to centralise critical functions in a well-regulated and internationally competitive jurisdiction. The regulations also support India’s broader objective of deeper integration with global financial markets and value chains.
Recognition of Multiple Operating Models
One of the most significant improvements under the revised framework is the formal recognition of multiple operating models for GICs. These include Captive Centres, Shared Services Centres, Build-Operate-Transfer (BOT) arrangements, Joint Ventures (JV), Hybrid models, and other flexible structures. This wide range of permitted models allows financial institutions to design their GIC operations based on business needs, cost considerations, and long-term strategic goals.
Such flexibility enhances global competitiveness by enabling institutions to adopt structures that are commonly used in leading international financial hubs, thereby making GIFT-IFSC a more attractive alternative to offshore centres.
Permission to Serve Indian Group Entities
Under the new regulations, GIC units are permitted to provide services to Indian group entities up to 10% of their total annual revenue. This is a significant reform, as it allows closer integration between IFSC-based operations and domestic entities without compromising the international character of GIFT-IFSC.
This provision is particularly beneficial for financial institution groups that currently operate offshore centres servicing India, as it encourages them to relocate such activities to GIFT-IFSC while still meeting regulatory requirements.
Relaxation in Employee Transfer Norms
IFSCA has also eased the earlier 20% cap on employee transfers to GIFT-IFSC. This relaxation allows financial institution groups to move skilled and experienced professionals more freely from existing locations to IFSC-based GICs. Improved talent mobility supports faster operational scaling, knowledge transfer, and development of high-end financial services at GIFT City.
This change directly addresses one of the key operational challenges faced by institutions when setting up or expanding GICs in IFSC.
Third-Party Service Providers and Co-Delivery Models
The revised framework enables third-party service providers to assist in the setup and operation of GIC units, including through co-delivery models. This significantly improves ease of doing business by allowing institutions to leverage specialised service providers for infrastructure, staffing, technology, and operational support.
Such flexibility lowers entry barriers, reduces setup time, and enhances efficiency, making GIFT-IFSC more accessible for both large global institutions and emerging financial players.
Clear Eligibility, Governance, and Transition Provisions
The GIC Regulations, 2025 introduce much-needed clarity on key regulatory aspects, including eligibility criteria, streamlined registration procedures, governance and fit-and-proper requirements, reporting obligations, supervisory oversight, and risk management standards. These provisions ensure regulatory certainty while maintaining robust compliance and oversight mechanisms.
Importantly, the regulations also include structured transition provisions, ensuring continuity of operations for existing GIC units and providing a smooth alignment with the updated framework.
India’s Expanding GIC / GCC Ecosystem
India currently hosts approximately 1,900 GICs/GCCs, and this number is projected to increase to 2,400 by 2030. The sector is expected to generate USD 120 billion in export revenue and create around 4.3 million jobs, highlighting the growing strategic importance of GICs in India’s economic and financial services landscape.
These projections reinforce the critical role of GIFT-IFSC as the focal point for future growth in this sector and as a key contributor to employment generation and value creation.
Amendment to BATF Regulations, 2024
In addition to the GIC reforms, IFSCA approved amendments to the BATF Regulations, 2024, removing the mandatory requirement of minimum office space of 60 sq. ft per employee for BATF service providers operating from GIFT-IFSC. This change significantly lowers entry barriers, reduces fixed operational costs, and encourages participation by a wider range of professional service providers.
The amendment is expected to boost the professional services ecosystem at IFSC and enhance its global competitiveness.
Conclusion
The approval of the IFSCA (Global In-House Centres) Regulations, 2025 along with the amendments to the BATF Regulations, 2024 represents a significant milestone in the development of GIFT-IFSC as a globally competitive financial services centre. These regulatory reforms bring greater clarity, flexibility, and alignment with international best practices, making GIFT-IFSC a more attractive destination for global financial institutions and professional service providers. By recognising multiple operating models, easing employee transfer norms, and simplifying entry requirements, the framework addresses key operational challenges and enhances ease of doing business.
Together, these measures actively support the onshoring of India-centric financial and professional services that were previously conducted from offshore locations. The strengthened regulatory ecosystem is expected to encourage investment, foster innovation, and generate high-quality employment opportunities for Indian professionals. As a result, GIFT-IFSC is well-positioned to emerge as a world-class financial hub, contributing meaningfully to India’s integration with global financial markets and long-term economic growth.
Frequently Asked Questions (FAQs)
Q1. What are the IFSCA (Global In-House Centres) Regulations, 2025?
Ans. These regulations provide a comprehensive and enabling framework for establishing and operating Global In-House Centres at GIFT-IFSC to deliver financial and related services for financial institution groups.
Q2. Who can establish a GIC at GIFT-IFSC?
Ans. Financial Institution Groups can establish GIC units either directly or through approved third-party service providers under the revised regulations.
Q3. What operating models are allowed under the new GIC regulations?
Ans. The framework recognises Captive Centres, Shared Services Centres, BOT arrangements, Joint Ventures, Hybrid models, and other flexible operating structures.
Q4. Can GICs serve Indian group entities?
Ans. Yes, GIC units are permitted to serve Indian group entities up to 10% of their total annual revenue.
Q5. What changes were made to employee transfer norms?
Ans. The earlier 20% cap on employee transfers to GIFT-IFSC has been eased, allowing greater flexibility in moving skilled professionals.
Q6. What is the key amendment in the BATF Regulations, 2024?
Ans. The mandatory minimum office space requirement for BATF service providers has been removed, reducing costs and entry barriers.
Q7. How do these reforms benefit GIFT-IFSC?
Ans. The reforms improve ease of doing business, attract global institutions, create high-quality jobs, and support the onshoring of India-centric financial services to GIFT City.

The International Financial Services Centres Authority (IFSCA), at its 26th Authority Meeting held on 22 December 2025, approved a series of landmark regulatory reforms aimed at significantly strengthening GIFT-IFSC as a global hub for high-value financial and professional services. These reforms represent a strategic shift towards making India’s first International Financial Services Centre more competitive, flexible, and aligned with global regulatory standards. The key approvals include the IFSCA (Global In-House Centres) Regulations, 2025 and important amendments to the Book-keeping, Accounting, Taxation and Financial Crime Compliance Services (BATF) Regulations, 2024, both of which are expected to substantially improve the ease of doing business within IFSC.

Together, these reforms reflect IFSCA’s long-term vision of attracting global financial institutions, encouraging onshoring of India-centric financial services, and creating high-quality employment opportunities at GIFT City.

Learn more more about SEBI relaxes regulations for stock brokers in gift city.

Revamped IFSCA (Global In-House Centres) Regulations, 2025

The newly approved GIC Regulations, 2025 introduce a comprehensive, modern, and globally aligned regulatory framework for the establishment and operation of Global In-House Centres (GICs) at GIFT-IFSC. These centres are intended to act as strategic service hubs for financial institution groups, delivering high-value services such as financial operations, technology development, data analytics, risk management, regulatory compliance, and other specialised support functions.

By providing a clear and enabling regulatory environment, the new framework strengthens GIFT-IFSC’s position as a preferred destination for global financial institutions seeking to centralise critical functions in a well-regulated and internationally competitive jurisdiction. The regulations also support India’s broader objective of deeper integration with global financial markets and value chains.

Recognition of Multiple Operating Models

One of the most significant improvements under the revised framework is the formal recognition of multiple operating models for GICs. These include Captive Centres, Shared Services Centres, Build-Operate-Transfer (BOT) arrangements, Joint Ventures (JV), Hybrid models, and other flexible structures. This wide range of permitted models allows financial institutions to design their GIC operations based on business needs, cost considerations, and long-term strategic goals.

Such flexibility enhances global competitiveness by enabling institutions to adopt structures that are commonly used in leading international financial hubs, thereby making GIFT-IFSC a more attractive alternative to offshore centres.

Permission to Serve Indian Group Entities

Under the new regulations, GIC units are permitted to provide services to Indian group entities up to 10% of their total annual revenue. This is a significant reform, as it allows closer integration between IFSC-based operations and domestic entities without compromising the international character of GIFT-IFSC.

This provision is particularly beneficial for financial institution groups that currently operate offshore centres servicing India, as it encourages them to relocate such activities to GIFT-IFSC while still meeting regulatory requirements.

Relaxation in Employee Transfer Norms

IFSCA has also eased the earlier 20% cap on employee transfers to GIFT-IFSC. This relaxation allows financial institution groups to move skilled and experienced professionals more freely from existing locations to IFSC-based GICs. Improved talent mobility supports faster operational scaling, knowledge transfer, and development of high-end financial services at GIFT City.

This change directly addresses one of the key operational challenges faced by institutions when setting up or expanding GICs in IFSC.

Third-Party Service Providers and Co-Delivery Models

The revised framework enables third-party service providers to assist in the setup and operation of GIC units, including through co-delivery models. This significantly improves ease of doing business by allowing institutions to leverage specialised service providers for infrastructure, staffing, technology, and operational support.

Such flexibility lowers entry barriers, reduces setup time, and enhances efficiency, making GIFT-IFSC more accessible for both large global institutions and emerging financial players.

Clear Eligibility, Governance, and Transition Provisions

The GIC Regulations, 2025 introduce much-needed clarity on key regulatory aspects, including eligibility criteria, streamlined registration procedures, governance and fit-and-proper requirements, reporting obligations, supervisory oversight, and risk management standards. These provisions ensure regulatory certainty while maintaining robust compliance and oversight mechanisms.

Importantly, the regulations also include structured transition provisions, ensuring continuity of operations for existing GIC units and providing a smooth alignment with the updated framework.

India’s Expanding GIC / GCC Ecosystem

India currently hosts approximately 1,900 GICs/GCCs, and this number is projected to increase to 2,400 by 2030. The sector is expected to generate USD 120 billion in export revenue and create around 4.3 million jobs, highlighting the growing strategic importance of GICs in India’s economic and financial services landscape.

These projections reinforce the critical role of GIFT-IFSC as the focal point for future growth in this sector and as a key contributor to employment generation and value creation.

Amendment to BATF Regulations, 2024

In addition to the GIC reforms, IFSCA approved amendments to the BATF Regulations, 2024, removing the mandatory requirement of minimum office space of 60 sq. ft per employee for BATF service providers operating from GIFT-IFSC. This change significantly lowers entry barriers, reduces fixed operational costs, and encourages participation by a wider range of professional service providers.

The amendment is expected to boost the professional services ecosystem at IFSC and enhance its global competitiveness.

Conclusion

The approval of the IFSCA (Global In-House Centres) Regulations, 2025 along with the amendments to the BATF Regulations, 2024 represents a significant milestone in the development of GIFT-IFSC as a globally competitive financial services centre. These regulatory reforms bring greater clarity, flexibility, and alignment with international best practices, making GIFT-IFSC a more attractive destination for global financial institutions and professional service providers. By recognising multiple operating models, easing employee transfer norms, and simplifying entry requirements, the framework addresses key operational challenges and enhances ease of doing business.

Together, these measures actively support the onshoring of India-centric financial and professional services that were previously conducted from offshore locations. The strengthened regulatory ecosystem is expected to encourage investment, foster innovation, and generate high-quality employment opportunities for Indian professionals. As a result, GIFT-IFSC is well-positioned to emerge as a world-class financial hub, contributing meaningfully to India’s integration with global financial markets and long-term economic growth.

Frequently Asked Questions (FAQs)

Q1. What are the IFSCA (Global In-House Centres) Regulations, 2025?

Ans. These regulations provide a comprehensive and enabling framework for establishing and operating Global In-House Centres at GIFT-IFSC to deliver financial and related services for financial institution groups.

Q2. Who can establish a GIC at GIFT-IFSC?

Ans. Financial Institution Groups can establish GIC units either directly or through approved third-party service providers under the revised regulations.

Q3. What operating models are allowed under the new GIC regulations?

Ans. The framework recognises Captive Centres, Shared Services Centres, BOT arrangements, Joint Ventures, Hybrid models, and other flexible operating structures.

Q4. Can GICs serve Indian group entities?

Ans. Yes, GIC units are permitted to serve Indian group entities up to 10% of their total annual revenue.

Q5. What changes were made to employee transfer norms?

Ans. The earlier 20% cap on employee transfers to GIFT-IFSC has been eased, allowing greater flexibility in moving skilled professionals.

Q6. What is the key amendment in the BATF Regulations, 2024?

Ans. The mandatory minimum office space requirement for BATF service providers has been removed, reducing costs and entry barriers.

Q7. How do these reforms benefit GIFT-IFSC?

Ans. The reforms improve ease of doing business, attract global institutions, create high-quality jobs, and support the onshoring of India-centric financial services to GIFT City.