Global Access Compliance Update Strengthens Investor Transparency in IFSC GIFT City

The International Financial Services Centre continues to evolve as a trusted global marketplace for cross-border investing. A new circular issued by the International Financial Services Centres Authority brings a sharper focus on transparency and investor awareness, especially for entities offering global market access. This development reinforces the compliance culture within GIFT City while helping investors understand the responsibilities involved when trading worldwide.

The circular issued on November 26, 2025, explains a key requirement under Clause 39 of the Regulatory Framework for Global Access in the IFSC. It applies to Global Access Providers and Introducing Brokers operating within the IFSC structure. These entities will now need to display specific risk disclosures to clients at every login, ensuring that investors are fully aware of the risks linked to international trading and investing.

The instruction has been issued under the powers granted to the Authority under the IFSCA Act 2019, along with regulatory provisions outlined in the Capital Market Intermediaries Regulations 2025. The circular also notes that compliance must be achieved by December 31, 2025, leaving the ecosystem sufficient time to upgrade systems and interfaces.

The Core Purpose of the Disclosure Requirement

With global markets offering opportunities across jurisdictions, investor protection becomes a central priority. The disclosure framework ensures that individuals accessing foreign instruments understand the operational, technological, legal, and market-related risks before executing trades. The Authority has provided a comprehensive set of risks in Annexure I of the circular, which must be shown to clients each time they log in.

These disclosures include reminders that investors must assess their own goals and risk appetite before entering any global market transaction. They also confirm that investors must understand the regulatory and taxation rules of the jurisdictions in which they intend to transact.

Key Risks Investors Must Be Aware Of:

Market and interest rate riskGlobal markets operate under different regulations, financial conditions, and disclosure standards. Execution environments differ from those in the IFSC, and investors need to account for varying market structures.

Currency Exchange-rate movements may influence gains or losses when converting profits back to the base currency.

Custody riskAssets may be held with foreign custodians or intermediaries and could face exposure if these entities face operational challenges or insolvency.

Liquidity and settlement riskDifferent settlement cycles and liquidity conditions may lead to delays or variations in execution.

Technology time zone and cyber-attack riskTrading across time zones introduces latency and system-related vulnerabilities. The circular also highlights risks involving cyber threats that may compromise personal data and transactional integrity.

Product suitability riskCertain global instruments may be complex, and investors are expected to ensure that these products align with their personal financial situations.

Regulatory and legal risk jurisdiction has unique regulatory mechanisms, dispute-resolution systems, and supervisory frameworks. These may affect investments or impose restrictions.

Taxation Transactions may attract taxes in India and in the foreign jurisdiction. Compliance with evolving tax rules remains the investor’s responsibility.

Remittance and compliance riskFund movements must comply with Indian laws, including LRS guidelines, and with regulations applicable abroad.

Social and political riskPolitical or social developments in global markets can affect investment decisions and outcomes.

Strengthening the IFSC Ecosystem

This new compliance requirement ensures that investors receive clear and structured information before entering global markets. It enhances confidence in the IFSC framework and supports the broader mission of building a responsible financial environment within GIFT City. The consistent display of disclosures also helps align investor expectations with the realities of global trading, reducing information gaps and promoting safer participation.

The Authority’s initiative reinforces GIFT City’s position as a progressive and reliable marketplace, balancing investor empowerment with strong regulatory discipline.