IFSCA’s Revamped Global Access Regulatory Framework – Explained

GIFT CFO
Jun 3
3 min read

📌 Introduction

The International Financial Services Centres Authority (IFSCA) is setting the stage for India to become a true gateway to global markets. In its latest move, the IFSCA has released a Revised Consultation Paper on the Draft Revamped Regulatory Framework for Global Access in the IFSC, dated May 30, 2025.

This paper lays out a structured, regulated, and inclusive path for broker-dealers and investors in GIFT IFSC to access international stock exchanges while safeguarding investors—especially those participating via the Liberalised Remittance Scheme (LRS).

🌍 Background: Why Global Access?

Global financial markets offer diversification, higher returns, and protection against local currency and commodity risks. Many Indian investors already explore global markets via LRS, often through unregulated or loosely regulated platforms.

IFSCA aims to:

Offer regulated access to global exchanges from within India (via GIFT IFSC)
Transition current unregulated global investing models into the regulated IFSC ecosystem
Make GIFT IFSC a trusted, cross-border investing hub

🧩 Key Proposals in the Revised Framework

1️⃣ Classification of Participants

New Definitions Introduced:

Global Access Providers (GAPs): IFSC-registered broker-dealers with direct arrangements with foreign brokers.
Introducing Brokers: IFSC brokers referring clients to GAPs but without direct foreign access.
Introducers: Any non-broker entities referring clients to GAPs for a fee.

This clearly separates execution, referral, and access responsibilities—enhancing transparency.

2️⃣ Tiered Net Worth Requirements

IFSCA introduces a risk-based net worth framework for wider participation:

Entity Type	Net Worth (USD)
GAP – Subsidiary of recognised stock exchange	$500,000
GAP – Clientele Trading	$500,000
GAP – Proprietary Trading	$200,000
Introducing Broker	$100,000
Broker-dealer – Prop. Trading through GAP	$100,000

🔹 Lower barriers will allow more startups and midsize brokers to participate.

3️⃣ Strengthened Client Safeguards

IFSCA mandates:

Segregation of client and proprietary funds
Full disclosure: risks, fees, KYC/AML responsibilities, tax impacts, jurisdictional constraints
Independent inspections by qualified CAs/CS/CMA professionals
Complaints handling aligned with IFSCA norms

4️⃣ Cost Efficiency for Traders

🧾 Fee Structure Highlights:

Derivatives Turnover Fee reduced to 0.000075% (from 0.0001%)
Non-Derivatives Turnover Fee fixed at 0.005%
Clarity on who pays:
- Clientele Trading: Fee paid by GAP
- Proprietary Trading: Broker-dealer pays; GAP collects & remits

➡️ Lower costs = Better margins for brokers = More participation.

5️⃣ Investor Eligibility & Product Scope

✅ Eligible Investors:

Indian residents (as per FEMA rules)
Non-residents

🎯 Allowed Products:

Only products that qualify as "financial products" in IFSC
🔒 Exclusions: Crypto-assets, Indian stock derivatives, INR pair forex contracts

🔐 GAPs must have systems to ensure compliance with LRS and FEMA guidelines.

6️⃣ Operational Obligations for GAPs

GAPs must:

Maintain IFSC-based bank accounts for routing client funds
Onboard clients via agreements (with introducers or directly)
Maintain infrastructure and staff suitable for operations
Execute trades only via foreign brokers who are compliant in their jurisdictions
Store all data (user, transaction, trade) within IFSC

7️⃣ Regulatory Oversight and Reporting

Quarterly reports to IFSCA
Broker-dealers to report to GAPs
IFSCA may inspect any GAP or Introducing Broker via ICAI/ICSI/ICMAI professionals
All advertising must be accurate, non-misleading, and factual

📢 Public Participation Open

📅 Deadline: June 9, 2025📩 Email submissions to: consultation-cfd@ifsca.gov.in With copy to:

🔖 Subject line: “Comments on revised draft circular on Revamped Regulatory Framework for Global Access in the IFSC”

📝 Comments should be submitted in IFSCA's prescribed format with clause reference, suggested change, and rationale.

🔮 Final Thoughts

This revamped Global Access Framework by IFSCA is a big leap forward in making GIFT City a truly global financial hub. With clear categorization of market participants, lower entry barriers, and enhanced investor protection, the framework: