Tuesday November 4 2025

News Source: Global Exchanges

Focus: General - Global Exchanges

Type: General

Country: India

Link: https://tinyurl.com/rxnnvzf3




On 3rd November 2025, the International Financial Services Centres Authority (IFSCA) issued a consultation paper on amendments to the IFSCA (Capital Market Intermediaries) Regulations, 2025 seeking public comments on proposed changes aim to enhance ease of doing business for capital market intermediaries in the IFSC. The new CMI Regulations, notified in April 2025, replaced the earlier 2021 framework.

The IFSCA proposed changes in the following areas:

  1. Eligibility criteria for principal officer and compliance officer:

In Regulation 9(2)(a) of the CMI Regulations, 2025, it is proposed that:

  • Post graduate degree in fintech, science, technology, engineering, and mathematics (STEM), may also be added as valid qualification to act as principal officer or compliance officer of a capital market intermediary.
  • The minimum number of years of experience for a graduate to act as principal officer / compliance officer of a capital market intermediary may be reduced from 10 years to 5 years.
  1. CMIs with Multiple Registrations:

In regulation 9(8) of the CMI Regulations, 2025, it is proposed that:

  • The entities having registrations as broker dealers, clearing members, depository participants, custodians and registered distributors may have the same person as principal officer. However, as regards distribution activities, the entity may be required to appoint a separate official with adequate experience in the financial services market as a vertical head for its distribution business activities.
  1. Net worth:

As per regulation 3(1)(cc) of the CMI Regulations, the following may be clarified in terms of net worth:

  • Base minimum capital and interest free deposit deposited by the broker dealers and clearing members with Stock Exchanges and Clearing Corporations shall not be considered part of liquid assets
  • Margins deposited with clearing member and clearing corporation by broker dealer and clearing member respectively, shall be considered as part of liquid assets.
  1. Net Worth requirement for Custodians:
  • IFSCA proposes specifying a minimum net worth requirement of USD 1 million may be specified for custodians registered with IFSCA. In the case of a branch, the net worth may be maintained at the parent entity level, with the specified amount duly earmarked for its branch in the IFSC, in accordance with Regulation 7(2) of the CMI Regulations.
  • Existing custodians that are required to infuse or earmark additional funds may be provided time till January 31st, 2026 to comply with the revised net worth criteria.
  1. Umbrella registration for CMIs:
  • IFSCA is considering the introduction of an Umbrella Registration (unified registration) framework for Capital Market Intermediaries, which would enable an entity to seek registration for undertaking multiple activities through a single application form. This initiative will enhance ease of doing business and streamline the overall registration process.

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