IFSCA Issues FAQs on TechFin and Ancillary Services Regulations, 2025

FAQs Dated 12.12.2025

1. Background

The International Financial Services Centres Authority (IFSCA) has issued a comprehensive set of Frequently Asked Questions (FAQs) under the IFSCA (TechFin and Ancillary Services) Regulations, 2025.

The FAQs are intended to provide operational clarity and ease of implementation for entities seeking registration or migrating to the new regulatory framework governing Technology-enabled Financial Services (TechFin) and Ancillary Services in IFSCs.

2. Clarification on Eligibility and Scope

The FAQs clarify:

• Who is eligible to apply under the TechFin and Ancillary Services Regulations
• The permitted activities covered under TechFin and Ancillary Services
• Applicability to entities providing technology, data, analytics, support, or infrastructure services to financial institutions operating in IFSC

This helps applicants determine whether their business model falls within the regulatory perimeter of the 2025 Regulations.

3. Permissible Legal Forms of Applicants

The FAQs specify the acceptable legal structures under which applicants may seek registration, such as:

• Companies incorporated under applicable company laws
• Other legal forms permitted by IFSCA, subject to fulfilment of eligibility criteria

This provides clarity on structuring options for applicants planning entry into IFSC.

4. Migration From Earlier Frameworks

The FAQs address the transition from:

• The erstwhile Ancillary Services framework, and
• The earlier FinTech regulatory framework

Key Clarifications

• Eligible existing entities may migrate to the new Regulations
• Migration conditions, documentation, and timelines are clarified
• Transitional arrangements ensure business continuity during migration

5. Certificate of Registration (CoR) – Timelines and Process

The FAQs explain:

• The process and timelines for obtaining a Certificate of Registration (CoR)
• The stages of scrutiny, approval, and grant of registration
• Expectations regarding completeness and accuracy of applications

This reduces uncertainty around onboarding timelines for new applicants.

6. Principal Officer and Compliance Officer

The FAQs provide guidance on:

• Appointment requirements for the Principal Officer and Compliance Officer
• Roles, responsibilities, and accountability expectations
• Timelines for appointment post-registration, where applicable

This reinforces governance and compliance oversight within registered entities.

7. Fee Structure and Payment

Clarifications have been provided on:

• Applicable fees under the Regulations
• Mode and timing of fee payment
• Treatment of fees during migration from earlier frameworks

8. Treatment of Pending Applications

For applications submitted under previous frameworks but not yet finalised:

• The FAQs clarify how such pending applications will be treated
• Whether re-submission, migration, or additional compliance is required
• Ensures fairness and administrative continuity for applicants in the pipeline

9. Repeal of Earlier Circulars

The FAQs confirm that:

• Earlier circulars, guidelines, and directions governing FinTech and Ancillary Services stand repealed
• The 2025 Regulations and FAQs now serve as the single consolidated regulatory reference

This eliminates regulatory overlap and ambiguity.

10. Regulatory Intent

The issuance of FAQs aims to:

• Provide operational certainty and ease of doing business
• Enable a smooth transition to the new TechFin and Ancillary Services regime
• Strengthen governance, compliance, and regulatory consistency
• Encourage innovation while ensuring regulatory oversight in IFSC

11. Key Compliance Takeaways

Entities should:

• Assess eligibility under the 2025 Regulations
• Review migration options if operating under earlier frameworks
• Plan timely appointment of Principal and Compliance Officers
• Align fee payments, governance structures, and internal policies
• Treat the FAQs as authoritative interpretative guidance

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