IFSCA Master Circular for Investment Bankers (2025)

Introduction:

The International Financial Services Centres Authority (IFSCA) has released a comprehensive Master Circular for Investment Bankers in GIFT City IFSC, consolidating all key regulatory provisions and processes under the Capital Market Intermediaries Regulations, 2025. This circular supersedes the earlier one dated December 3, 2021.

🔍 Summary:

The Master Circular streamlines the regulatory, compliance, and operational landscape for Investment Bankers in IFSC. Key highlights include:

1. Registration via SWITS Platform:

• Mandatory application through the Single Window IT System (SWITS) for registration, SEZ LoA, GSTN, and inter-regulatory NoCs (SEBI, RBI, IRDAI).
• Online USD/INR fee payments with detailed instructions and payment accounts provided.

2. Validity and Requirements:

• Registration is perpetual, subject to valid LoA under SEZ Act and ongoing compliance.
• Annual and event-based reporting, compliance audit, and LoA renewals are essential to avoid enforcement actions.

3. Scope of Activities Permitted:

• Managing public issues, private placements, underwriting, advisory services, M&A, corporate restructuring, and more.
• Activity permitted in IFSC as well as foreign jurisdictions.

4. Eligibility of Banking Units (IBUs):

• IBUs can operate as Investment Bankers upon separate authorization and must maintain arm’s length with other activities.

5. Governance Framework:

• Appointment of Principal Officer and Compliance Officer based in IFSC with qualifications per CMI norms.

6. KYC, AML & Cybersecurity:

• Mandatory compliance with IFSCA’s AML Guidelines (2022) and FIU-IND registration on FINGate 2.0.
• Adherence to cybersecurity & resilience framework aligned with operational complexity.

7. Code of Conduct & Internal Controls:

• Conflict of interest policies, insider trading prohibition, detailed agreements with issuers, and underwriting limits (20x net worth).

8. Grievance Redressal:

• Compliance with IFSCA circulars on complaint handling and mandatory disclosures for change in control or surrender of registration.

🔗 Website Link for Full Notification:

Click here to view the full Master Circular on IFSCA website

Nexpective Advisors is your trusted partner in GIFT IFSC regulatory and advisory services. If this update impacts your operations or compliance approach, connect with us for tailored guidance and proactive implementation support.