The International Financial Services Centres Authority (IFSCA) on 24th December 2025 has introduced the Global In-House Centres (GICs) Regulations, 2025. By reframing regulation into opportunity, India is signalling its intent to become a central node in the global financial services value chain. While at first glance this may appear as another compliance framework, the deeper narrative is clear: India is positioning its IFSCs not merely as regulatory zones, but as strategic gateways for global capital, innovation, and corporate structuring.
SUMMARY OF GIC REGULATIONS 2025
Key Objectives
- Global Hub Development: Transform IFSCs into world-class destinations for delivering financial and related services.
- Employment Generation: Create new opportunities by attracting global financial institutions.
- India-Centric Integration: Encourage financial services currently routed through offshore centres to return to India.
Who Can Apply?
- Only entities classified as Financial Institution Groups (banks, NBFCs, insurers, investment banks, brokerages, custodians, etc.).
- Applicants must not originate from jurisdictions flagged as high-risk by FATF.
- Applications are processed through the Single Window IT System (SWIT), ensuring efficiency and transparency.
Registration Process
- Submit application with required documents and fees via SWIT.
- Authority may grant in-principle approval.
- Applicant must comply within 180 days.
- Certificate of registration remains valid unless suspended, cancelled, or voluntarily surrendered.
Permissible Services
- GIC Units can provide services related to financial products and services.
- Services must primarily target non-resident entities in compliant jurisdictions.
- Limited services (≤10% of revenue) may be offered to Indian entities of the same group.
- Existing contracts in India cannot simply be transferred to IFSCs for GIC setup.
Governance & Compliance
- Mandatory appointment of a Principal Officer (overall responsibility) and a Compliance Officer (legal and regulatory adherence).
- Officers must be full-time employees based in IFSC.
- All key persons must meet “fit and proper” criteria – financial integrity, good reputation, and no disqualifications such as fraud, insolvency, or regulatory bans.
Business Operations
- Operations conducted in specified foreign currencies; INR accounts allowed for expenses.
- Balance sheets maintained in foreign currency.
- Financial reporting to Authority in USD, unless otherwise specified.
Regulatory Oversight
- IFSCA retains powers to:
- Relax strict enforcement of regulations.
- Issue clarifications, guidance notes, and circulars.
- Demand information, conduct inspections, and enforce compliance.
- Violations trigger enforcement actions, but applicants are guaranteed a fair hearing.
Transition Provisions
- Existing GICs registered under 2020 regulations must comply with new rules within 90 days.
- Previous regulations and circulars are repealed, but past actions remain valid
STRATEGIC SIGNALS FOR GLOBAL CORPORATES
- Operational Efficiency Meets Global Standards: The regulations formalize GICs as vehicles for delivering high-value financial services, aligning India’s IFSCs with international benchmarks.
- Jurisdictional Confidence: By excluding entities from FATF high-risk jurisdictions, India is signalling its commitment to credibility and investor protection.
- Talent & Employment Leverage: With India’s deep talent pool, GICs offer corporates a way to combine cost efficiency with global expertise.
WHY INVESTORS SHOULD PAY ATTENTION
- Repatriation of India-Centric Flows: Transactions currently routed through offshore hubs (Singapore, Dubai, Mauritius) are being incentivized to return to India. This creates new liquidity pools and investment opportunities.
- Regulatory Flexibility with Oversight: The Authority retains powers to relax strict enforcement where market development demands it. This balance of innovation and accountability is attractive to investors seeking stability without stifling growth.
- Currency & Reporting Clarity: Operations in specified foreign currencies, with reporting standardized in USD, reduce friction for global investors accustomed to dollar-denominated flows.
IMPLICATIONS FOR GLOBAL STRATEGY
| Dimension |
Impact for Corporates |
Impact for Investors |
| Market Access |
Gateway to India’s growing financial services market |
Exposure to India-centric flows previously offshore |
| Compliance |
Clear governance, “fit and proper” criteria for officers |
Reduced risk of regulatory arbitrage |
| Talent |
Ability to leverage India’s skilled workforce |
Confidence in operational scalability |
| Currency |
Flexibility in foreign currency operations |
Standardized USD reporting for transparency |
| Regulatory Approach |
Structured oversight with room for relaxation |
Predictable yet adaptive environment |
THE BIGGER PICTURE
For Global Corporates, GICs in India’s IFSCs are not just back-office units, they are strategic anchors in Asia’s fastest-growing financial market. For investors, they represent new channels of capital flow, backed by regulatory clarity and India’s ambition to integrate into the global value chain. India is inviting the world’s financial institutions to co-create a future where IFSCs rival established offshore hubs, but with the added advantage of scale, talent, and proximity to one of the largest emerging markets.
Full Gazette of India regarding GIC Regulations 2025, published on 29 Dec 2025 can be viewed here.
