The International Financial Services Centres Authority (IFSCA) has approved a regulatory framework enabling Third-Party Fund Management Services (TFMS) at GIFT City, Gujarat. The move, cleared at the Authority’s 24th meeting on June 24, 2025, marks a significant shift in India’s approach to cross-border fund management by allowing both foreign and domestic fund managers to operate without needing a physical presence or substance requirement in GIFT IFSC.

The TFMS Model, commonly called the “platform play”, permits External Fund Managers to manage IFSC-based funds by partnering with licensed fund platform managers already registered with IFSCA. This means global and Indian asset managers can launch and manage funds from GIFT IFSC without direct registration or setup, focussing solely on investment strategy while regulatory compliance and operations are handled by the platform partner.

This model is widely used in top fund jurisdictions such as Singapore, Mauritius, and Luxembourg, which offer flexible legal structures like Variable Capital Companies (VCCs) and umbrella funds. These setups allow efficient fund launches while ensuring compliance through licensed local managers.

With the new framework, IFSCA aims to replicate such globally successful models to position GIFT IFSC as a competitive international fund management centre. The authority believes this step will reduce entry barriers, accelerate cross-border fund activity, and attract global talent and capital to India’s financial ecosystem.