Regulatory Approvals & Licensing (IFSCA)

IFSCA Regulatory Approvals & Licensing in GIFT City, Gandhinagar

The International Financial Services Centres Authority (IFSCA) is the unified statutory regulator for all financial services entities in GIFT City's IFSC. Established under the IFSCA Act 2019, it combines the regulatory powers of RBI, SEBI, IRDAI, and PFRDA within the IFSC perimeter. Every entity conducting regulated financial activities in GIFT City must obtain IFSCA authorisation before commencing operations. Morry's Business, based in Gandhinagar, provides specialist IFSCA licensing support with direct regulatory access.

Key IFSCA Licences and Registration Categories

IFSCA has issued comprehensive frameworks for multiple entity types. Fund Management Entities (FMEs) managing AIFs, ETFs, or mutual fund schemes in IFSC require FME registration under the IFSCA (Fund Management) Regulations 2022. Capital market intermediaries — broker-dealers, clearing members, investment advisers, and portfolio managers — are regulated under the IFSCA (Capital Market Intermediaries) Regulations 2021. Insurance entities (IBUs, insurance intermediaries) are regulated under the IFSCA (Insurance) Regulations 2021. Banking units (IBUs) continue to be regulated by both RBI and IFSCA. Ancillary Service Providers (legal, accounting, IT, HR) register under the IFSCA (Ancillary Services) Regulations 2022.

Fund Management Entities: AIF and FME Setup

GIFT City is an increasingly attractive jurisdiction for alternative investment funds — both Indian promoters seeking a regulated offshore-equivalent platform, and foreign fund managers seeking a regulated India presence. An FME can manage AIFs investing in listed and unlisted securities, real estate, infrastructure, and private equity. IFSCA's regulatory framework is designed to be comparable to Singapore's MAS and Dubai's DFSA — making GIFT City funds recognisable to international investors. We prepare the FME registration application including business plan, risk management framework, compliance programme, and key personnel documentation.

The Licensing Application Process

IFSCA applications are submitted through the IFSCA portal with supporting documentation including: Memorandum and Articles (for a company) or LLP Agreement, board resolution authorising IFSC activities, KYC of promoters and key managerial persons, business plan with projected financials, net worth certificate (from a CA), and draft compliance policies. We prepare the complete application dossier and manage the IFSCA query response process — coordinating between our Gandhinagar office, IFSCA officers in GIFT City, and your management team — until the approval letter is issued.

Post-Licensing Compliance Setup

Receiving an IFSCA licence is the start, not the end, of regulatory compliance. New licensees must immediately establish: a Principal Officer and Compliance Officer (meeting IFSCA's fit and proper criteria), a risk management framework, a compliance calendar for periodic IFSCA filings, and a reporting system for IFSCA's quarterly and annual data requests. We set up the initial compliance infrastructure and either manage ongoing compliance ourselves or train your internal compliance team — ensuring you start your GIFT City operations on a sound regulatory footing.