TaxTMI 
TaxTMI 
International Financial Services Centres Authority (TechFin and Ancillary Services) Regulations, 2025
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.... arrangements for carrying on any of the financial services listed in sub-clauses (i) to (xi) of clause (e) of sub-section (1) of section 3 of the International Financial Services Centres Authority Act, 2019 (50 of 2019). 3. Definitions 1) In these regulations, unless the context otherwise requires, the terms defined herein shall bear the meanings as assigned to them below and their cognate expressions and variations shall be construed accordingly: - (i). "Act" means the International Financial Services Centres Authority Act, 2019 (50 of 2019); (ii). "Ancillary Services" means those services which, directly or indirectly, aid, help or assist in making arrangements for carrying on any of the financial services listed in sub-clauses (i) to (xi) of clause (e) of sub- section (1) of section 3 of the Act; (iii). "Authority" means the International Financial Services Centres Authority established under sub-section (1) of section 4 of the Act; (iv). "Group Entities" includes an arrangement involving two or more entities related to each other through any of the following relationships: (a) parent- subsidiary (as per Ind-AS 110/AS 21)....
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....(e) of sub-section (1) of Section 3 of the Act; (xi). "Single Window IT Systems (SWIT)" refers to an online platform specified by the Authority, to facilitate the processing of applications submitted by the applicants for obtaining certificate of registration under these regulations; (xii). "Specified Foreign Currency" means the currencies specified in the First Schedule of the International Financial Services Centres Authority (Banking) Regulations, 2020, as amended from time to time; (xiii). "TechFin and Ancillary Service Provider" means an entity which has been granted registration under these regulations for providing one or more of the Ancillary Services or TechFin Services, specified in the First and Second Schedule, respectively, directly or indirectly, to aid, help or assist in making arrangements for carrying on any of the financial services listed in sub-clauses (i) to (xi) of clause (e) of sub-section (1) of Section 3 of the Act; Explanation. - For removal of doubts, it is hereby clarified that the TechFin and Ancillary Service Providers registered under these regulations shall not undertake any of the services specified in the Third S....
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....ay, upon receipt of a declaration from the existing Ancillary Services Provider or TechFin entity, certifying the compliance with the requirements specified under these regulations, and on being satisfied with such declaration, issue a certificate of registration. 5. Legal Form of the Applicant and Eligibility 1) The applicant shall be an entity incorporated as a company or limited liability partnership in the IFSC, or a branch of a company or of a limited liability partnership incorporated outside the IFSC, or in any other form as may be permitted by the Authority: Provided that a partnership firm registered under the Indian Partnership Act, 1932, wherein all its partners are members of professional body or institute constituted under any Act of Parliament, shall also be eligible to make an application under these regulations. 2) All the promoters or partners of the applicant entity shall be from a jurisdiction which has not been identified in the public statement of Financial Action Task Force (FATF) as "High-Risk Jurisdictions subject to call for action". 6. Procedure for making application and grant of Certificate of Registration 1) An ....
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....times. 2) For the purpose of sub-regulation (1), a person shall be deemed to be a 'fit and proper' if,- (i). such a person has a record of fairness and integrity, including but not limited to- (a) financial integrity; (b) good reputation and character; and (c) honesty. (ii). such a person has not incurred any of the following disqualifications: a) the person has been convicted by a court of law for any offence involving moral turpitude or any economic offence or any offence, under the Act or Acts mentioned in the First Schedule of the Act, in last five (5) years; b) charge sheet has been filed against such person by any Indian or foreign enforcement agency in matters concerning economic offences and is pending; c) charges have been framed by a court of law or an equivalent institution in matters concerning economic offences; d) a recovery proceeding has been initiated against the person by a statutory body or financial regulatory authority and is pending; e) an order has been passed against the person for malfeasance; f) the person has been declared an undischarged insolvent;....
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.... 3) The principal officer and compliance officer shall be full-time employees of TechFin and Ancillary Service Provider and shall be based out of the IFSC. CHAPTER V INTERMEDIARIES AND SERVICE RECIPIENTS 10. Eligible Intermediaries and Service Recipients 1) The TechFin and Ancillary Service Provider may provide the services only to an Intermediary or a Service Recipient, who is a Non-resident and from a jurisdiction which has not been identified in the public statement of Financial Action Task Force (FATF) as "High-Risk Jurisdiction subject to call for action". 2) Notwithstanding anything contained in sub-regulation (1), the TechFin and Ancillary Service Provider may also provide the services to a Resident, for the limited purpose of setting up of their office in the IFSC or Overseas. CHAPTER VI MISCELLANEOUS 11. Currency of operations 1) The TechFin and Ancillary Service Provider shall carry out its operation in any of the Specified Foreign Currency: Provided that the TechFin and Ancillary Service Provider may open an INR account to defray its administrative and statutory expenses and for such other purposes as may be permi....
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....me. 18. Power to Inspect The Authority, may suo motu or upon receipt of information or complaint, appoint one or more persons as Inspecting Authority to, inter-alia, undertake the inspection of books of accounts, records, documents, infrastructure, procedures and systems of a TechFin and Ancillary Service Provider. 19. Action in case of default 1) The Authority may initiate any action, as it may deem fit, in case a TechFin and Ancillary Service Provider contravenes any of the provisions of these regulations, circulars, guidelines or directions issued thereunder. 2) No action as referred under sub-regulation (1) shall be taken without giving the TechFin and Ancillary Service Provider, a reasonable opportunity of being heard by way of written submissions. 20. Repeal and Savings 1) On and from the commencement of these regulations, the Circular dated February 10, 2021 as amended from time to time, titled as "Framework for enabling Ancillary services at International Financial Services Centres" and any other circulars issued thereunder, shall stand repealed after twenty-four (24) months from the commencement of these regulations. 2) The p....
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.... support services; (xii). Knowledge process outsourcing; (xiii). Legal process outsourcing; (xiv). Legal services; (xv). Management consulting services; (xvi). Marketing support services; (xvii). Outsourced services, which are not covered in this Schedule but are permitted to be outsourced by the entity regulated by any financial sector regulator of its home jurisdiction; (xviii). Risk management related services, namely providing support services to risk identification, risk analysis, risk measurement, risk mitigation, risk elimination, support to internal audit, risk audit, risk related disclosures; (xix). Secretarial services; (xx). Broking services for leasing activities permitted in the IFSC; (xxi). Supply chain management support; (xxii). Trusteeship services including facility agent functions, except debenture trustee services permitted under the International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2025; (xxiii). Valuation services; (xxiv). Voice broking for banking services; (xxv). Family office support serv....
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.... banking; (xxi). Technology solutions including IT related development, enhancement, maintenance and support services; (xxii). Tokenization support services; (xxiii). Centre of excellence, Offshore development centre, Technology capability centre to provide R & D support in technology; (xxiv). Any other services as may be permitted by the Authority from time to time. THE THIRD SCHEDULE [refer regulation 3(1)(xiii)] List of services not permitted to be provided by TechFin and Ancillary Service Provider under these regulations: (i) Core activities which are not permitted to be outsourced by an entity regulated by any financial sector regulators of home jurisdictions; (ii) Activities which are regulated under any regulations or framework issued by IFSCA; (iii) Facility management services which inter-alia includes building maintenance, security services, housekeeping services, civil, mechanical, electrical and plumbing maintenance services or any other related manpower outsourced services; (iv) Transport and logistic services, construction related services, and management of physical assets; and ....