The International Financial Services Centres Authority (IFSCA) has released a revised consultation paper on its draft regulatory framework for Global Access in IFSCs, after considering industry feedback and stakeholder consultation.
On May 08, 2025, IFSCA issued a consultation paper proposing a revamped regulatory framework for enabling Global Access in IFSCs. The paper aimed to facilitate cross-border dealings in securities, formalize operations of broker-dealers and intermediaries accessing international markets from within the IFSC, especially under the Liberalised Remittance Scheme (LRS) route.
Following several stakeholder meetings and written feedback, IFSCA released a revised version of the framework on May 30, 2025 which are
๐๐๐ฒ ๐๐๐ฏ๐ข๐ฌ๐ข๐จ๐ง๐ฌ ๐ญ๐จ ๐ญ๐ก๐ ๐ ๐ซ๐๐ฆ๐๐ฐ๐จ๐ซ๐ค:
1.ย ๐๐๐๐ข๐ง๐ข๐ญ๐ข๐จ๐ง๐๐ฅ ๐๐ฅ๐๐ซ๐ข๐ญ๐ฒ: The definition of Global Access Providers (GAPs), has been broadened to include now the brokers registered with IFSCA that have arrangements with foreign brokers for providing access to global markets.
2.ย ๐๐๐๐ฎ๐๐๐ ๐๐๐ญ ๐๐จ๐ซ๐ญ๐ก ๐๐๐ช๐ฎ๐ข๐ซ๐๐ฆ๐๐ง๐ญ๐ฌ:
a.ย The net worth threshold for GAPs has been reduced from USD 1 million to USD 500,000.
b.ย GAPs engaged solely in proprietary trading now require USD 200,000.
c.ย Introducing Brokers are required to maintain a minimum net worth of only USD 100,000.
3.ย ย ๐๐จ๐ฐ๐๐ซ ๐๐๐ ๐ฎ๐ฅ๐๐ญ๐จ๐ซ๐ฒ ๐๐๐๐ฌ: The regulatory fee for derivatives trading has been lowered to 0.000075% of turnover, reducing the cost burden on market participants. A clear mechanism has been introduced for assigning regulatory fees depending on whether trades are conducted on a proprietary or clientele basis.
4.ย ย ๐๐ง๐ก๐๐ง๐๐๐ ๐๐ฏ๐๐ซ๐ฌ๐ข๐ ๐ก๐ญ ๐๐ง๐ ๐๐ฅ๐ข๐๐ง๐ญ ๐ฌ๐๐๐๐ ๐ฎ๐๐ซ๐๐ฌ: The revised framework mandates segregation of client funds from proprietary accounts to protect investor interests. There is now a requirement for detailed client disclosures covering risk, fees, tax implications, and jurisdictional rules. Further, the framework empowers the IFSCA to conduct inspections through members of The Institute of Chartered Accountants of India (ICAI), The Institute of Company Secretaries of India, or Institute of Cost Accountants of India to ensure proper oversight.
This marks a pivotal regulatory upgrade positioning IFSC as a gateway for international investments, while safeguarding Indian retail investors using the LRS route. Public comments on the revised consultation paper are open until June 09, 2025.