IFSCA Issues Master Circular for Investment Advisers – August 2025 Update
Introduction:
On August 5, 2025, IFSCA released a comprehensive Master Circular consolidating the regulatory framework for Investment Advisers (IAs) operating in the GIFT IFSC under the new Capital Market Intermediaries (CMI) Regulations, 2025.
Summary:
This Master Circular streamlines key regulatory provisions applicable to Investment Advisers and offers clarity on operational, governance, compliance, and reporting norms. Highlights include:
- Registration Process: Unified through the SWIT System for ease of doing business, with integration across SEZ, GSTN, and other regulators.
- Governance Requirements: Appointment of Principal and Compliance Officers based in IFSC, with specific qualifications.
- Permissible Activities: Advising clients in India, IFSC, or foreign jurisdictions—advice to Indian residents must comply with FEMA.
- Code of Conduct & Risk Profiling: Emphasis on fiduciary responsibilities, client risk assessment, and prohibition on guaranteed return assurances.
- Conflict of Interest & Implementation Services: Clear segregation of advisory and distribution activities, along with mandatory disclosures.
- Periodic Reporting & Annual Audit: Quarterly submissions and annual compliance audit mandatory for all IAs.
- Cyber Security & AML: Adherence to IFSCA’s cyber resilience and KYC/AML guidelines, including FIU-IND registration.
- Surrender & Change in Control: Detailed protocols for exit or change in ownership.
Website Link:
Read the Full Notification on IFSCA Website
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.
