GIFT City eyes global retirement funds with new pension regulations

Ahmedabad: The International Financial Services Centres Authority (IFSCA) has rolled out a dedicated regulatory framework for pension funds operating in Gujarat International Finance Tec-City (GIFT City), in a move aimed at attracting global retirement capital and strengthening India’s ambitions of becoming an international financial hub.The newly notified International Financial Services Centres Authority (Pension Fund) Regulations, 2026, establish the framework for registration, regulation and supervision of pension funds within the International Financial Services Centre (IFSC).IFSCA said the regulations are intended to create a robust ecosystem for long-term retirement savings while ensuring transparency, subscriber protection and the integrity of the pension ecosystem in the IFSC.The framework comes as GIFT City seeks to expand beyond banking and fund management into long-term retirement and wealth products targeted at international investors, expatriates and global institutions.Under the regulations, pension funds seeking registration in the IFSC must have a minimum track record of 10 years, a condition designed to ensure that only established and experienced entities enter the market.The rules also provide flexibility to subscribers by allowing them to determine the frequency and amount of contributions. Pension funds, however, may prescribe a minimum contribution amount with prior approval from IFSCA.Industry executives said the framework could significantly deepen GIFT City’s appeal for global fund managers and wealth platforms.Sandip Shah, former head of the IFSC department at GIFT City and chief business officer at ETON Solutions, described the regulations as "a milestone that completes a vital piece of the puzzle for GIFT City’s wealth management ecosystem."“From a business and infrastructure perspective, this framework does not just create a new asset class; it establishes a multi-billion-dollar inbound gateway for global retirement capital," Shah said.He added that features such as multi-currency options, age-based life-cycle funds and healthcare-linked sub-accounts place GIFT City in line with leading global financial centres.The framework permits pension funds to launch multiple investment options, including "active choice" schemes that allow subscribers to decide their asset allocation, and "auto choice" life-cycle funds where investments automatically shift from higher-risk to conservative assets as investors approach retirement age.IFSCA has also mandated detailed disclosures for every pension scheme, including investment objectives, strategies and risk profiles through a Scheme Information Document. Each pension scheme will have to be constituted as a trust.Further, pension funds will require prior approval from IFSCA before launching any new scheme or making material changes to existing products.