How the IFSCA Capital Market Intermediaries Amendment Regulations 2026 Will Boost Financial Services Growth in GIFT City for the GIFT CFO

On January 12, 2026, the International Financial Services Centres Authority (IFSCA) notified the Capital Market Intermediaries (Amendment) Regulations 2026 in the Official Gazette. These amendments refine and strengthen the existing regulatory framework for capital market intermediaries operating in the International Financial Services Centre (IFSC), including GIFT City. 

The changes aim to simplify compliance, broaden eligibility for key roles, rationalise registration requirements, and align regulatory standards with evolving global practices. This article breaks down the key provisions of the amendment, what they mean for market participants, and how they could create new opportunities for business and financial professionals in GIFT City.

Background of the Amendment

The original IFSCA (Capital Market Intermediaries) Regulations provide a comprehensive governance framework for entities that act as intermediaries in capital markets within the IFSC. This includes broker-dealers, custodians, clearing members, investment advisers, research entities, distributors, and more. The 2026 amendment refines these rules with a focus on operational ease, regulatory clarity, and expanding market participation.

Unified Registration for Multiple Activities

One of the most important changes introduced in the 2026 amendment is the introduction of unified registration for intermediaries that wish to undertake more than one capital market activity.

Under the amended Regulation 4, an IFSC entity intending to carry out multiple activities may apply for a single registration covering all such activities, rather than seeking separate registrations for each. This reduces procedural duplication, lowers compliance costs, and streamlines regulatory filings for intermediaries that operate across verticals.

Broadened Eligibility for Key Officers

The amendments to Regulation 9 make the eligibility criteria for Principal Officers (POs) and Compliance Officers (COs) more flexible and inclusive.

• Educational qualifications have been expanded to include fintech, science, technology, engineering, and mathematics (STEM) disciplines in addition to traditional finance and actuarial science qualifications.

• The requirement that foreign university degrees must be “recognised” has been removed, broadening the pool of acceptable credentials.

• The minimum work experience requirement for graduates seeking appointment as PO or CO has been reduced from 10 years to 5 years.

  
  

These changes make it easier for skilled professionals with diverse educational and professional backgrounds to qualify for senior roles, helping intermediaries attract talent with specialised and technical expertise.

Rationalised Leadership Structure for Multi-Activity Firms

The amended Regulation 9 also modifies how leadership roles are structured when an entity holds registrations for multiple intermediary activities.

Under the new provisions:

• An individual may serve as the Principal Officer across several registered activities, such as broker-dealer, clearing member, depository participant, custodian, investment adviser, research entity, or distributor.

• However, if an entity undertakes distribution business activities, it must appoint a separate official as the vertical head for distribution.

  
  

This approach reduces overlap in senior appointments while maintaining focused oversight of distribution activities, which carry distinct risks related to conduct and investor protection.

Custodian Net Worth Requirements and Circular Supersession

Custodians registered with IFSCA play a critical role in safeguarding investor assets. Under the amendment:

• The minimum net worth requirement for custodians has been clearly set at USD 1 million.

• Entities that must align with the revised capital norms are given until June 30, 2026, to comply.

• The amendment supersedes the earlier circular (dated February 24, 2021) that governed recognition standards for custodians.

  
  

By establishing a clear threshold and providing a transition timeline, the amendment enhances transparency and helps custodians plan operational adjustments.

What These Changes Mean for IFSC Intermediaries

Together, these amendments deliver several practical benefits for intermediaries and their clients operating in GIFT City:

1. Greater Ease of BusinessUnified registration and harmonised leadership norms reduce duplication of regulatory filings and allow entities to scale their operations across segments with lower administrative overhead. This supports market participants aiming to offer integrated services from a single IFSC base.

2. Expanded Talent Pool. By adapting eligibility criteria for key managerial roles to recognise interdisciplinary and technical qualifications, the regulatory framework acknowledges the importance of fintech, data analytics, and technical expertise in modern capital markets. This can help firms attract professionals with specialised skills across technology and finance.

3. Stronger Regulatory Clarity: Clear net worth norms, defined timelines for compliance, and the formal supersession of outdated circulars reduce uncertainty for intermediaries. Firms can make strategic decisions with a clearer understanding of their regulatory obligations.

4. Investor Protection and Oversight. While the amendments introduce flexibility in operational and leadership structures, the requirement to appoint a dedicated distribution head ensures focused supervision of distribution-related activities. This supports better governance and helps maintain confidence among investors.

Strategic Implications for GIFT City and Financial Professionals

GIFT City has been envisioned as India’s flagship IFSC designed to attract global capital, cross-border financial services, and fintech innovation. The 2026 amendment to the Capital Market Intermediaries Regulations strengthens the regulatory environment by enabling efficient market entry and encouraging diversity in talent.

Financial professionals and service providers in GIFT City can benefit by:

• Optimising organisational structures with unified registration and streamlined leadership requirements, reducing compliance load.

• Attracting specialist talent from STEM and fintech backgrounds to enhance competitiveness in areas such as algorithmic trading, data-driven investment research, compliance technology, and digital asset services.

• Leveraging regulatory clarity to plan capital requirements and timeline-based operational changes without ambiguity.

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These developments signal IFSCA’s commitment to aligning India’s IFSC with global standards, supporting both domestic intermediaries and international participants seeking a credible and efficient capital markets ecosystem.

Conclusion

The Capital Market Intermediaries (Amendment) Regulations 2026 bring meaningful regulatory updates that make compliance more flexible, broaden operational possibilities, and support the evolving needs of intermediaries in the IFSC, especially in GIFT City. By enabling unified registration, expanding eligibility, clarifying net worth norms, and balancing oversight with operational flexibility, the amendment fosters an environment conducive to growth. For businesses and financial professionals based in GIFT CFO and GIFT City, this could translate into stronger strategic positioning and a smoother path to tapping the opportunities offered by the global capital markets.