On April 17, 2025, the International Financial Services Centres Authority (IFSCA) issued a circular announcing amendments to its Ancillary Services Framework, specifically expanding the scope of “Trusteeship Services” under clause 4.3 of Annexure I. This change follows earlier circulars issued on February 10, 2021, June 10, 2021, and April 6, 2023, and is based on feedback from market participants and ongoing regulatory developments within the IFSC ecosystem.
Under the revised clause, trusteeship services will now encompass a wider range of activities. These include services related to Alternative Investment Funds, Investment Trusts such as Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs), Family Investment Funds (FIF), Security Trust arrangements, and acting as an escrow agent. Additionally, trusteeship services may be provided to various schemes, including retail schemes initiated by Fund Management Entities (FMEs) registered under the newly introduced IFSCA (Fund Management) Regulations, 2025. These services must comply with applicable regulatory standards, including the ‘fit and proper’ criteria and a prescribed code of conduct.
All other provisions in the Ancillary Services Framework dated February 10, 2021, remain unchanged. This amendment is enacted under the authority granted by Section 12 of the IFSCA Act, 2019, which empowers IFSCA to regulate financial services and institutions within IFSCs. The revised framework takes immediate effect and the full circular is available on the IFSCA website.
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
(Division of Ancillary Services, BATF and GIC)
2nd and 3rd Floor, Pragya Tower
GIFT City, Gandhinagar, Gujarat
Circular F. No. 51/IFSCA/PFPS0ANCI/1/2020-21 Dated: 17th April,2025
Subject: Amendment to the circular titled “Framework for enabling Ancillary Services at International Financial Services Centres”
Reference is drawn to IFSCA Circular No. 206/IFSCA/Anc. Aux/2020-21 dated February 10, 2021, and subsequent amendments issued vide circular dated June 10, 2021 and April 06, 2023.
2. In view of the recent regulatory developments in the IFSC ecosystem and based on the request received from the market participants for expanding the scope of activities covered under “Trusteeship Services” of the IFSCA (Ancillary Services) Framework, 2021, it has been decided to carry out the following amendment.
3. Accordingly, clause 4.3 of Annexure I to the IFSCA (Ancillary Services) Framework, 2021 shall be substituted as under:
4.3. Trusteeship Services
“(a) Trusteeship Services in relation to Alternative Investment Funds, Investment Trusts, Family Investment Funds (FIF), Security Trust arrangements and any other related services, including acting as escrow agent;
Explanation: The Investment Trust refers to structures such as Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs) and any other structure of similar nature set up under a Trust.
(b) Trusteeship Services may also be provided to various schemes, including retail schemes launched by the Fund Management Entities (FMEs) registered under the IFSCA (Fund Management) Regulations, 2025, subject to compliance with the ‘fit and proper’ criteria, code of conduct and other applicable compliances specified under the said regulations.”
4. All other provisions specified in the framework dated February 10, 2021, as amended from time to time, shall remain unchanged.
5. This circular is issued in exercise of powers conferred by section 12 of the IFSCA Act, 2019 to develop and regulate the financial product, financial services and financial institutions in the IFSCs. This amendment shall come into force with immediate effect.
6. A copy of this circular is available on the website of IFSCA at ifsca.gov.in
7. This issues with the approval of Competent Authority.
(Sathyaraj C M)
General Manager
