IFSCA Master Circular for Distributors – Aug 2025 IFSC Update
Introduction:
On August 5, 2025, IFSCA released a comprehensive Master Circular for Distributors operating in GIFT City’s IFSC. This consolidates and clarifies requirements under the new Capital Market Intermediaries (CMI) Regulations, 2025.
Summary:
Key highlights from the circular include:
- Registration Simplified via SWIT Portal: Distributors can register using a single-window system integrated with SEZ, GSTN, RBI, SEBI, and IRDAI.
- Eligibility & Fees: Simplified registration available for entities already licensed under other IFSCA categories (e.g., broker dealers, investment bankers). Fee payment permitted in USD/INR.
- Permissible Activities: Distributors can operate for capital market products across approved foreign jurisdictions.
- Governance & Compliance: Appointment of Principal and Compliance Officers in IFSC is mandatory. Entities must follow prescribed code of conduct and disclosure norms.
- Client Engagement: Includes rules for referral arrangements, omnibus accounts, digital distribution, and fee disclosures.
- Ongoing Responsibilities: Quarterly reporting, annual compliance audit, grievance redressal, and cyber resilience framework compliance mandated.
- Change in Control & Exit: Procedures for change in control and surrender of registration have been formalized.
This circular provides regulatory clarity and ease of doing business for distributors seeking to tap into global capital flows via IFSC.
Nexpective Advisors is your trusted partner in GIFT IFSC regulatory and advisory services. If this update affects your operations, we’re here to help you stay compliant and proactive.
