IFSCA Notifies Updated Regulations for Capital Market Intermediaries in IFSC

The International Financial Services Centres Authority (IFSCA) has officially notified the much-anticipated Capital Market Intermediaries (CMI) Regulations, 2025. These new regulations, approved in a recent Board meeting, represent a significant stride towards aligning the capital markets framework of India’s International Financial Services Centres (IFSCs) with evolving global practices and the dynamic needs of investors.

The updated CMI Regulations introduce several key changes designed to simplify operations, improve market access, and enhance regulatory clarity within GIFT IFSC, while also aligning with international standards.

Key Changes Introduced in the New Regulations

• Expansion of Intermediary Categories: The revised regulations now specifically recognize and include ESG (Environmental, Social, and Governance) rating and data providers, as well as research entities, within the official list of recognized intermediaries. This expansion reflects the growing importance of sustainable finance and data-driven insights in global capital markets.
• Lower Net Worth Requirements: To facilitate easier entry for new players and smaller firms, IFSCA has reduced the minimum net worth requirements for certain intermediaries. This includes investment bankers, investment advisers, and credit rating agencies. This move is expected to democratize access to the IFSC market for a wider range of financial service providers.
• Defined Eligibility Criteria for Compliance Officers: The updated framework introduces clear definitions and prescribed qualifications for the crucial role of a Compliance Officer. This is aimed at strengthening the compliance function within intermediary firms and ensuring that qualified professionals oversee adherence to regulatory standards.

These comprehensive changes are geared towards fostering a more efficient, accessible, and robust capital market ecosystem within the IFSC. By reducing barriers to entry and clearly defining roles and responsibilities, IFSCA aims to solidify GIFT IFSC’s position as a globally competitive financial hub.

Link to new regulations: https://ifsca.gov.in/Viewer?Path=Document%2FLegal%2Fifsca-cmi-regulations-202517042025051646.pdf&Title=IFSCA%20%28Capital%20Market%20Intermediaries%29%20Regulations%2C%202025&Date=17%2F04%2F2025

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Dhairya Chaniyara

Senior Associate | Financial Advisory | dhairya.c@treelife.in

Focuses on direct tax and regulatory services with a specialization in GIFT IFSC. Brings experience from various industries, including manufacturing, FMCG, IT-ITES, and healthcare, to deliver impactful tax solutions.