Global Access Framework in GIFT City Insights from Public Comments and Its Significance for Investors

Background

GIFT City (Gujarat International Finance Tec-City) is fast emerging as India’s global financial hub, bringing onshore activities that were traditionally conducted in offshore jurisdictions like Singapore and Dubai.

To enable seamless access for Indian and global investors to international markets, the International Financial Services Centres Authority (IFSCA) had released a Draft Revamped Regulatory Framework for Global Access in May 2025.

The framework aims to streamline cross-border investment access, strengthen investor protection, and enhance regulatory clarity for entities acting as Global Access Providers (GAPs) — those who connect investors in GIFT City to global markets.

The consultation paper received a wide range of public comments and suggestions from market participants, exchanges, and broker-dealers. These inputs provide deep insight into how the new framework could reshape trading and investment dynamics within GIFT IFSC.

What Is “Global Access” in GIFT IFSC?

Under the IFSCA model, Global Access Providers (GAPs) are entities — such as subsidiaries of recognized stock exchanges or registered broker-dealers — that enable clients in GIFT City to trade on global exchanges like NASDAQ, CME, or LSE.

This creates a two-way financial corridor — allowing Indian and international investors to access global markets from GIFT City itself, without needing offshore intermediaries.

The revamped framework aims to standardize authorisation, KYC norms, risk management, and fee structures for such global access activities. below is the Global Access Framework in GIFT City Insights from Public Comments

Key Highlights in Global Access Framework in GIFT City Insights from Public Comments

1. Extended Time for Compliance

Several stakeholders suggested extending the authorisation deadline for existing entities from 90 days to 180 or even 365 days, citing the operational and infrastructural changes required for transition.

👉 This ensures a smoother shift without disrupting existing client relationships or compliance systems.

2. Uniform Net Worth and Fee Rationalisation

• The draft proposed different net worth thresholds for broker-dealers and introducing brokers.

• Stakeholders recommended relaxing the additional USD 100,000 requirement for introducing brokers, arguing that their risk exposure is limited.

• Many also opposed the turnover-based recurring fee, suggesting a fixed annual fee model for proprietary trading firms (prop traders) to maintain competitiveness with other global financial centres.

👉 A balanced fee structure will help retain liquidity providers and high-frequency trading firms in GIFT City.

3. Broader Definition of Global Access Provider (GAP)

Some participants urged that GAPs shouldn’t be limited to subsidiaries of exchanges but also include independent broker-dealers already operating in GIFT City under valid NoCs. Others sought clarity on whether GAPs can partner with multiple foreign brokers or become direct members of global exchanges, improving flexibility and market reach.

👉 This could make GIFT IFSC a truly global trading hub by allowing diverse access arrangements.

4. Inclusion of Regulated Digital Assets and Fractional Trading

Several firms recommended expanding the definition of permissible financial products to include regulated Virtual Digital Assets (VDAs), blockchain-based funds, or fractional shares traded on regulated international venues.

👉 A progressive stance here could make GIFT City a leader in digital finance innovation.

5. Data Storage and Surveillance

Stakeholders supported the proposal that all trade and client data should be stored within GIFT IFSC, enhancing regulatory oversight and investor protection. They also recommended real-time monitoring systems and dedicated data monitoring rooms (DMR) for better compliance visibility.

6. Investor Protection and KYC Framework

Market participants welcomed IFSCA’s focus on investor safety but requested a uniform KYC and AML regime, stronger grievance redressal, and segregation of client vs. proprietary funds.

👉 This aligns with international best practices and builds investor confidence in the IFSC ecosystem.

7. Prop Trading and HFT Concerns

Proprietary trading firms raised valid concerns over turnover-based fees, which could make high-frequency or thin-margin strategies unviable.

They proposed:

• A flat annual fee or

• A fee-cap model ensuring fairness and sustainability.

👉 Such changes will attract more market makers and liquidity providers to operate from GIFT IFSC.

Impact Analysis – How GIFT City Stakeholders Will Benefit

1. Investors

• Easier access to global equities, bonds, ETFs, and derivatives through IFSCA-regulated entities.

• Better investor protection via disclosure norms and KYC compliance.

• Potential cost savings by investing via GIFT City instead of offshore intermediaries.

2. Financial Service Providers (Broker-Dealers, Fund Managers, Banks)

• A unified regulatory framework simplifies compliance and reporting.

• Ability to structure multi-market access platforms within IFSC.

• Opportunities to collaborate with global brokers and attract foreign capital inflows.

3. GIFT City Ecosystem

• Strengthens GIFT City’s position as a global trading gateway.

• Promotes regulatory credibility comparable to Singapore, London, and Dubai.

• Encourages new FinTech and digital asset innovations under IFSCA’s supervision.

Strategic Takeaway

The revamped Global Access framework — once finalised — will likely make GIFT City a fully integrated global market access hub. By balancing innovation, compliance, and investor protection, IFSCA is setting the stage for India’s capital market globalization from GIFT IFSC.

It’s not just a regulatory update — it’s a blueprint for how India connects to the world’s financial markets.

Disclaimer

This article provides a simplified summary of the Public Comments on the Draft Revamped Regulatory Framework for Global Access in the IFSC (May–August 2025).It is meant for educational and informational purposes only and does not constitute legal, financial, or investment advice. Readers should refer to the official IFSCA documents at www.ifsca.gov.in and consult licensed professionals before making any investment or compliance decision.