New GIFT IFSC Capital Market Intermediary Rules Approved by IFSCA

The International Financial Services Centres Authority (IFSCA) has approved a series of important regulatory reforms during its 29th Authority Meeting held on 24 July 2026. These reforms aim to strengthen the regulatory framework governing capital markets, fund management, electronic trading platforms, international education institutions and investor protection within GIFT IFSC. Among the most significant developments are amendments to the Capital Market Intermediaries Regulations, introduction of the Prohibition of Market Abuse in Securities Markets Regulations, and several initiatives designed to enhance transparency, governance and ease of doing business.

The updated GIFT IFSC Capital Market Intermediary Rules reinforce the Authority's commitment to building a globally competitive financial ecosystem while ensuring greater investor confidence and market integrity.

Understanding the New GIFT IFSC Capital Market Intermediary Rules

One of the major decisions approved by IFSCA relates to amendments in the IFSCA (Capital Market Intermediaries) Regulations, 2025 concerning Credit Rating Agencies.

The amendments focus on the withdrawal of credit ratings and seek to align the regulatory framework with internationally accepted best practices. By introducing greater clarity around rating withdrawals, IFSCA aims to improve transparency and strengthen confidence among investors and market participants.

These reforms form an important part of the broader GIFT IFSC Capital Market Intermediary Rules, supporting efficient functioning of capital markets while maintaining high regulatory standards.

Market Abuse Regulations Strengthen Investor Protection

Another landmark decision approved during the meeting is the introduction of the IFSCA (Prohibition of Market Abuse in Securities Markets) Regulations, 2026.

The new regulations establish a unified regulatory framework to prevent:

• Insider trading

• Fraudulent market practices

• Manipulative trading activities

• Unfair trade practices

The framework is designed to promote fair, efficient and transparent securities markets while protecting investor interests and maintaining confidence in GIFT IFSC's rapidly growing financial ecosystem.

For businesses operating under the GIFT IFSC Investment Regulations India, these reforms provide greater certainty regarding market conduct and regulatory expectations.

Ease of Doing Business for Fund Management Entities

IFSCA also approved multiple amendments to the Fund Management Regulations, 2025, with a strong focus on improving operational efficiency.

Key reforms include:

• Annual NAV computation for eligible close-ended restricted schemes with investor approval.

• Relaxation in independent valuation requirements for certain investments.

• Increase in contribution limit by Fund Management Entities and their associates from 10% to 25% for eligible schemes investing only in IFSC or foreign jurisdictions.

• Extended timeline for submission of annual reports from 4 months to 6 months.

• Simplified investor approval mechanisms through Private Placement Memorandum disclosures.

• Enhanced disclosure requirements for Retail Schemes.

These measures reduce compliance burdens while strengthening governance and investor protection across the fund management industry.

Supporting Blended Finance and Sustainable Investments

Recognising the growing importance of blended finance, IFSCA has introduced an enabling regulatory framework allowing Venture Capital Schemes and Restricted Schemes to issue multiple classes of units with differential distribution rights.

The framework supports innovative fund structures capable of mobilising private capital towards sustainable development and infrastructure projects.

According to the Authority, India's journey towards achieving net-zero emissions by 2070 is estimated to require approximately USD 22.7 trillion, with an estimated financing gap of USD 6.5 trillion, highlighting the need for innovative investment mechanisms.

These reforms further strengthen GIFT City Capital Market Regulations by encouraging sophisticated investment products aligned with global financial markets.

Electronic Trading Platform Regulations

The Authority also approved the IFSCA (Electronic Trading Platform) Regulations, 2026.

The new framework establishes dedicated regulations for Electronic Trading Platforms operating within GIFT IFSC, focusing on:

• Technology-driven trading infrastructure

• Market transparency

• Price discovery

• Liquidity enhancement

• Governance and regulatory oversight

• Alignment with international best practices

The initiative is expected to improve the competitiveness of GIFT IFSC as a global financial centre while providing market participants with greater regulatory certainty.

Strengthening International Education in GIFT IFSC

Beyond financial markets, IFSCA approved revamped regulations governing International Branch Campuses (IBCs).

Major improvements include:

• Introduction of the Foreign Higher Educational Institution (FHEI) concept.

• Recognition of Academic Infrastructure Service Providers.

• Expanded eligibility criteria.

• Online application process through the SWIT Portal.

• Defined approval timelines.

• Permanent registration unless suspended or surrendered.

• Student grievance redressal mechanism.

• Permission to collect student fees in INR subject to prescribed conversion requirements.

These reforms further enhance GIFT IFSC's position as an international destination for higher education and financial learning.

Why These Reforms Matter

The decisions approved during the 29th IFSCA Authority Meeting collectively strengthen governance, improve investor protection and simplify regulatory compliance across multiple sectors.

From GIFT IFSC Capital Market Intermediary Rules to fund management reforms and electronic trading regulations, the Authority continues to position GIFT IFSC as a world-class international financial centre capable of supporting global investment, innovation and sustainable growth.

For businesses, fund managers, financial institutions and international investors, understanding these regulatory developments is essential for maintaining compliance and identifying new opportunities within the evolving IFSC ecosystem.

Key Regulatory Insights from the 29th IFSCA Authority Meeting

The 29th IFSCA Authority Meeting introduced several regulatory reforms to strengthen capital markets, fund management, investor protection and ease of doing business in GIFT IFSC. The following table summarises the major announcements and their business implications.

Industry Insight	Regulatory Highlights
Capital Market Intermediaries	Amendments approved for Credit Rating Agencies to align withdrawal of credit ratings with global best practices.
Market Abuse Regulations	Unified framework introduced to prohibit insider trading, fraudulent, manipulative and unfair trade practices.
Fund Management Reforms	Operational ease enhanced through annual NAV option, valuation relaxations, higher FME contribution limits and extended reporting timelines.
FME Contribution	Contribution limit for eligible FMEs and associates increased from 10% to 25% for specified schemes investing only in IFSC or foreign jurisdictions.
Annual Report Timeline	Submission timeline for annual reports extended from 4 months to 6 months after the financial year-end.
Blended Finance	Restricted and Venture Capital Schemes permitted to issue multiple classes of units with differential distribution rights.
Electronic Trading Platforms	Dedicated regulatory framework approved to promote transparent, technology-driven trading with sound governance.
International Branch Campuses	Revamped regulations introduce FHEI concept, SWIT Portal applications, student grievance mechanism and permanent registration until surrendered, suspended or cancelled.

How Gift CFO Can Help

Gift CFO assists businesses, financial institutions, fund managers and international investors in navigating evolving IFSCA regulations. Our team provides advisory on GIFT IFSC licensing, regulatory compliance, fund structuring, capital market advisory, tax planning and corporate governance, helping clients align with the latest regulatory developments while maximising opportunities within GIFT IFSC.

Conclusion

The regulatory decisions approved during the 29th IFSCA Authority Meeting represent another significant milestone in strengthening the global competitiveness of GIFT IFSC. From enhanced GIFT IFSC Capital Market Intermediary Rules and stronger investor protection to modern fund management reforms and dedicated Electronic Trading Platform regulations, these initiatives create a more transparent, efficient and globally aligned financial ecosystem.

As GIFT IFSC continues to evolve into a leading international financial hub, businesses should proactively review these reforms and align their compliance, governance and investment strategies with the latest regulatory framework.