The International Financial Services Centres Authority (IFSCA) has issued a new circular to establish a regulatory framework for entities providing access to global financial markets from within the IFSC. This framework aims to develop the IFSC as a hub for cross-border capital flows. The rules apply to “Global Access Providers” (GAPs) and “Introducing Brokers,” defining their obligations, including the need for authorization from the IFSCA. The circular specifies minimum net worth requirements, fit and proper criteria for key personnel, and rules for client onboarding, including for Indian residents under the Liberalised Remittance Scheme (LRS). It also outlines the types of financial products GAPs can offer, prohibiting access to certain derivatives and crypto-assets. Additionally, the circular details responsibilities for GAPs, such as maintaining segregated client funds, ensuring proper risk management, and making clear disclosures to clients. The document also sets out rules for fees, periodic reporting, and compliance with KYC, AML, and CFT norms, underscoring the authority’s goal of ensuring investor protection and market integrity.

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