GIFT City Updates (February 2025)

CIRCULARS 

• IFSCA Amends Aircraft Lease Framework

Vide Circular bearing number F. No. 172/IFSCA/Finance Company Regulations/2022-23/01 dated 26.02.2025, the IFSCA framework regulates aircraft leasing in IFSCs, allowing financial and operating leases for aircraft, ground support equipment, and training simulators. Lessors must register, meet capital requirements, and comply with regulations, including anti-money laundering and reporting obligations. Transactions with Indian residents are restricted, and operations must be conducted in foreign currency, except for administrative expenses.

These amendments aim to boost the Indian aviation sector by encouraging domestic manufacturing and expanding leasing opportunities within GIFT City. CLICK HERE 

• Revised Framework (February 26, 2025)

Vide Circular bearing number F. No. 172/IFSCA/Finance Company Regulations/2024-25/02 dated 26.02.2025, the IFSCA has amended the ‘Framework for Aircraft Lease’ to permit Lessors in IFSC to acquire aircraft from Indian manufacturers. Restrictions on acquiring assets from Indian residents remain, except in specific cases such as non-group entity transactions, sale and leaseback of first-time imports, or purchases from manufacturers in India. The amendments take immediate effect. CLICK HERE

• Circular on Registration with FIU-IND FINGate 2.0 Portal

Vide Circular bearing number F. No. IFSCA/2/2025-AMLCFT/01 dated 25.02.2025, the IFSCA mandates Regulated Entities to register on the FIU-IND FINGate 2.0 portal before commencing business or within 30 days if urgent. Updates to the Line of Business must be made within 30 days. Non-compliance will be considered a breach of registration terms. Issues in registration must be reported to FIU-IND and IFSCA. CLICK HERE

• IFSCA Amends Circular on Special Non-Resident Rupee (SNRR) Account Transactions for IFSC Units

Vide Circular bearing number F. No. IFSCA - FMPP0BR/4/2024-Banking /1 dated 18.02.2025, the amendment allows IFSC units to open SNRR accounts with authorized dealers in India for business-related transactions outside IFSC. However, financial service-related transactions must be conducted through IFSC banking units. This revision aligns with the amended FEMA regulations and ensures compliance with the IFSC framework while facilitating certain INR transactions outside IFSC. CLICK HERE

• IFSCA Allows Remote Trading Participants on Stock Exchanges

Vide Circular bearing number IFSCA/CMD-MIIT/RTP/2024-25/001 dated 11.02.2025, the IFSCA has revised eligibility norms for Remote Trading Participants (RTPs) on IFSC stock exchanges. Regulated foreign entities and members of specified global exchanges can now trade on a proprietary basis in cash-settled derivatives. Indian entities are ineligible. Exchanges must ensure compliance with AML/KYC norms and set onboarding conditions. This circular supersedes the April 2024 directive. CLICK HERE

 

PRESS RELEASES

• IFSCA cancels the approval/ authorization granted to Prowess Insurance Brokers Pvt. Ltd. – 14.02.2025 

The IFSCA, by order dated 13.02.2025, canceled Prowess Insurance Brokers Pvt. Ltd.’s authorization to operate in GIFT IFSC due to non-compliance with IFSCA regulations and directives. The action was taken under the IFSCA Act, 2019, and the IFSCA (Insurance Intermediaries) Regulations, 2021, citing regulatory and legal violations. CLICK HERE

• IFSCA (Bullion Market) Regulations, 2025 – 17.02.2025

The IFSCA (Bullion Market) Regulations, 2025, notified on 13.02.2025, replace the 2020 Bullion Exchange Regulations, broadening their scope to cover the entire bullion market. Key changes include revised definitions, minimum net worth requirements, new governance provisions, and enhanced regulatory clarity. These regulations aim to improve price discovery, ease of doing business, and customer protection in the bullion market ecosystem within GIFT IFSC. CLICK HERE

• Notification of IFSCA (Fund Management) Regulations, 2025 – 19.02.2025

The IFSCA (Fund Management) Regulations, 2025, notified on February 19, 2025, replace the 2020 regulations to enhance ease of doing business in GIFT IFSC. Key reforms include reduced minimum corpus for schemes, eased compliance for fund of funds, relaxed KMP appointment norms, lower investment thresholds for PMS, streamlined custodian requirements, and global expansion provisions. The regulations aim to simplify fund management, improve investor protection, and foster international financial growth. CLICK HERE