14 May 2026
Overview
On 12th May 2026, the International Financial Services Centres Authority IFSCA notified two significant amendments published in the Gazette of India.
Taken together, these amendments create an integrated ecosystem within GIFT IFSC for structured finance and leasing transactions. Trust and Company Service Providers TCSPs will now be able to incorporate and administer Special Purpose Vehicles SPVs in the IFSC, and those SPVs will in turn be recognised as a new category of Finance Company permitted to conduct leasing and financing activities, effectively enabling a full-service, regulated leasing structure within India’s international financial hub.
The TechFin and Ancillary Services Amendment Regulations 2026 insert a new Chapter VA into the IFSCA TechFin and Ancillary Services Regulations 2025. This chapter creates a formal regulatory category for Trust and Company Services Providers in GIFT IFSC, entities that assist in the formation and administration of legal structures such as trusts, companies, and Limited Liability Partnerships LLPs.
What is a TCSP
A TCSP is a TechFin and Ancillary Services Provider registered under these regulations specifically to carry out trust and company services for leasing activities permitted by IFSCA. Existing TechFin entities wishing to add this activity must seek separate IFSCA approval.
Registration and Eligibility
* Applicants must be incorporated in GIFT IFSC as a company or LLP, or any other form permitted by IFSCA.
* All promoters or partners must be from non FATF Financial Action Task Force high risk jurisdictions.
* Registration is valid unless suspended, cancelled, or voluntarily surrendered, voluntary surrender being subject to IFSCA acceptance.
* Applicants must declare an arm’s length relationship between TCSP activities and any other services they provide.
Permissible Services
TCSPs may perform one or more of the following for leasing activities permitted by IFSCA:
* Act as agent for setting up trusts, companies, LLPs, or other body corporates.
* Act as or arrange for another person to act as trustee for trusts, director, company secretary, nominee shareholder for companies, partner or designated partner for LLPs, or any equivalent person for other body corporates.
* Provide registered office, business address, correspondence, or administrative address for trusts, companies, LLPs, or body corporates.
* Any other services as permitted by IFSCA from time to time.
Governance and Compliance Requirements
The new framework imposes robust governance standards commensurate with the scale and risk profile of the TCSP:
* Governing Body: Every TCSP must have a Governing Body to formulate a governance framework and oversee operations.
* Internal Audit: An internal audit or independent review mechanism must assess the adequacy of governance controls, effectiveness of AML CFT KYC systems, accuracy of client records, and adherence to regulatory approvals.
* Record Keeping: Accurate records must be maintained for each legal person or arrangement administered, including trust deeds, constitutional documents, and service agreements, for a minimum of 5 years post cessation of client relationship.
* Segregation of Duties: Internal policies must ensure no single person has end to end control over client acceptance, service delivery, transaction execution, and compliance oversight.
Key Personnel
Every TCSP must appoint a Principal Officer and a Compliance Officer based in GIFT IFSC as full time employees. Minimum qualifications include a professional or post graduate degree in finance, law, commerce, or a related field, along with at least 5 years of post qualification experience in financial services for the Principal Officer.
Eligible Service Recipients
* TCSPs may serve non resident clients from non FATF high risk jurisdictions.
* Services may also be provided to SPVs in GIFT IFSC even where the underlying transaction is at the request of, or for the benefit of, a person resident in India, provided the SPV is the primary service recipient.
* A resident Indian who sponsors or finances an SPV is not treated as a TCSP service recipient solely because of that association.
The IFSCA Finance Company Amendment Regulations 2026 amend the IFSCA Finance Company Regulations 2021 to formally recognise SPVs as a new category of Finance Company and introduce a dedicated leasing and financing regime for them.
New Definitions
* Special Purpose Vehicle SPV: A Finance Company incorporated or administered, or both by a Trust and Company Services Provider in GIFT IFSC, in the manner specified by IFSCA, for undertaking permissible activities.
* Trust and Company Service Provider TCSP: An entity authorised under the IFSCA TechFin and Ancillary Services Regulations 2025 to provide TCSP services.
New Permissible Activity for SPV Leasing and Financing
Regulation 5 1 iii of the Finance Company Regulations has been amended to include a new category covering leasing or financing activity undertaken by an SPV, as permitted by the Authority. This creates a separate activity category for SPV level leasing and financing in GIFT IFSC and is intended to support global aircraft leasing, ship leasing, equipment leasing, and similar structured finance transactions.
Minimum Owned Fund Requirement
* Minimum Owned Fund: Equivalent to the amount prescribed under the Companies Act 2013, or as specified by IFSCA.
* Exempted Regulations: Regulation 4 fit and proper and Regulation 8 other requirements are exempt.
The exemption from Regulations 4 and 8 is significant. It means SPVs are not required to independently satisfy the fit and proper criteria or certain other regulatory requirements applicable to mainstream Finance Companies, reflecting their purpose built and administratively supervised nature under the TCSP.
