Wednesday May 14 2025
News Source: Global Exchanges
Focus: General - Global Exchanges
Type: General
Country: India
On 8th May 2025, theĀ International Financial Services Centres Authority (IFSCA) proposed a revamped regulatory framework for Global Access in the IFSC, inter alia covering the following aspects:
- Registration of Global Access Providers
- Modalities of Global Access/ Operational Framework
- Permitted Products through Global Access
- Responsibilities of Global Access Providers and Broker Dealers
- Disclosures to Clients
- KYC, AML and CFT Norms
- Code of Conduct and Advertisement Code
- Periodic Reporting
- Fee Structure
- Other regulatory norms
The key regulatory objectives of the proposed revamped framework are as follows:
- To enhance opportunities for broker-dealers operating in the IFSC to access and participate in various global exchanges
- To position the IFSC as a gateway for outbound investments by resident Indians in a regulated manner
- To promote ease of doing business by providing more operational flexibility and streamlining norms relating to cross-border trading between IFSC and global markets.
- To reinforce the regulatory framework by effectively managing and mitigating risks associated with global market access.
- To align the framework with internationally recognized best practices.
The proposed regulatory framework also offers a pathway for entities currently facilitating access to global markets from within India (in an unregulated environment) to transition their operations to the IFSC. By doing so, these services can be provided within a regulated ecosystem, thereby safeguarding the interests of the interests, including those of Indian retail investors investing under the Liberalised Remittance Scheme (LRS) route.
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