IFSCA Eases Staffing Requirements for GRCTCs in IFSCs

The International Financial Services Centres Authority (IFSCA) has introduced significant amendments to its framework for Global/Regional Corporate Treasury Centres (GRCTCs) operating within India’s International Financial Services Centres (IFSCs). These changes aim to enhance operational flexibility and attract global financial institutions to establish their treasury operations in GIFT City.

Key Amendments:

• Staffing Flexibility: Effective June 9, 2025, IFSCA has relaxed the mandatory requirement for GRCTCs to appoint at least five qualified professionals, including a Head of Treasury and a Compliance Officer, before commencing operations. This relaxation allows entities to operate with a leaner team during the initial phase.
• Conditional Approval for Indian Contract Transfers: Previously, GRCTCs were prohibited from receiving or transferring existing contracts from Indian service recipients. The new amendment permits such transfers, subject to approval from the IFSCA Chairperson, for a period not exceeding one year from the commencement of operations. This provision facilitates a phased entry for multinational corporations into the Indian market.
  

Implications for International Firms:

• Phased Expansion: International firms can now pilot their treasury operations in IFSCs with reduced initial staffing, enabling a phased approach to expansion.
• Operational Flexibility: The amendments provide greater flexibility in staffing and operational setup, aligning with international best practices and easing the entry process for foreign entities.
• Regulatory Alignment: These changes reflect IFSCA’s commitment to fostering a conducive business environment while maintaining regulatory standards.
  

Industry Impact:

The revised framework is expected to attract a diverse range of financial institutions to establish their treasury operations in IFSCs, thereby contributing to the growth and development of India’s financial sector. By aligning with global standards and offering operational flexibility, IFSCA aims to position IFSCs as a competitive hub for international financial services.

Interested in setting up operations in IFSCs or seeking guidance on navigating the updated regulatory framework?

Treelife offers expert advisory services and preparing necessary documentation, and ensuring compliance with IFSCA regulations.

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Dhairya Chaniyara

Senior Associate | Tax & Regulatory | dhairya.c@server5.the-treelife.com

Focuses on direct tax and regulatory services with a specialization in GIFT IFSC. Brings experience from various industries, including manufacturing, FMCG, IT-ITES, and healthcare, to deliver impactful tax solutions.