Net Worth Requirements under IFSCA (CMI) Regulations, 2025
The Capital Market Intermediaries (CMI) Regulations, 2025, introduced by the International Financial Services Centres Authority (IFSCA), provide a robust framework for intermediaries operating in GIFT City IFSC. A crucial pillar of this framework is the IFSCA net worth requirements 2025, which ensure intermediaries maintain adequate financial health and investor confidence.
While the initial compliance deadline was October 1, 2025, IFSCA has now extended it to December 31, 2025, allowing entities more time to align their capital structure and documentation for IFSCA CMI compliance.
Why Net Worth Compliance Matters
Net worth isn’t just a licensing prerequisite — it’s a continuous compliance condition under the IFSCA CMI Regulations 2025. Maintaining the required levels consistently supports:
- Financial resilience of intermediaries
- Market stability during volatility
- Enhanced credibility with global investors
- Eligibility for continued registration and renewals under GIFT IFSC capital requirements
Defining Net Worth under IFSCA CMI Regulations
Standard Formula:
Net Worth = Paid-up share capital + Free reserves – Accumulated losses – Miscellaneous expenditure not written off
This computation is central to determining capital adequacy under IFSCA regulations.
For Broker Dealers, Clearing Members, and Investment Bankers:
Net worth must consist only of liquid assets, including:
- Cash and bank balances
- Fixed deposits
- Government securities
- Other IFSCA-approved instruments
Excluded: Revaluation reserves, depreciation write-backs, or amalgamation reserves — ensuring strict compliance with IFSCA liquid net worth norms.
Minimum Net Worth by Category
| Category | Minimum Net Worth Requirement |
| Broker Dealer (Trading Member) | As per recognised stock exchange |
| Clearing Member | As per recognised clearing corporation |
| Credit Rating Agency | USD 200,000 |
| Custodian | As specified by IFSCA |
| Debenture Trustee | USD 1.5 million |
| Depository Participant | As per recognised depository |
| Distributor | USD 50,000 |
| ESG Ratings & Data Provider | USD 25,000 |
| Investment Adviser | USD 25,000 |
| Investment Banker | USD 100,000 |
| Research Entity | USD 25,000 |
These thresholds reflect the minimum capital requirement in GIFT IFSC for intermediaries across various categories.
Global Access Providers (GAPs) – Special Provisions
For intermediaries under the Global Access Framework, net worth must be:
- Earmarked exclusively for global access operations
- Maintained separately from other activities
- Aligned with IFSCA circulars, generally starting from USD 500,000 for high-tier models under the net worth requirement for Global Access Providers in IFSC
Core Compliance Principles
- Continuous compliance: Maintain prescribed net worth levels at all times under the IFSCA net worth compliance framework
- Highest threshold rule: Entities with multiple registrations must maintain the highest applicable requirement
- Foreign parent branches: Parent-level capital must be earmarked for IFSC operations with proper documentation to meet IFSC branch capital requirements
- Separate obligations: IFSC net worth is in addition to any domestic capital requirements
- Record-keeping: Maintain quarterly and annual net worth statements for inspection readiness and IFSCA compliance audit
Transition Timeline
- Original Deadline: October 1, 2025
- Extended Deadline: December 31, 2025
This extension provides time for intermediaries to finalize capital infusions, board approvals, and compliance documentation before the new cutoff for IFSCA net worth deadline 2025.
Regulatory Update – IFSCA Circular on Computation of Liquid Net Worth (30 December 2025)
The International Financial Services Centres Authority (IFSCA), vide Circular No. IFSCA-PLNP/80/2024-Capital Markets dated 30 December 2025, has issued important clarifications on the computation of liquid net worth under the IFSCA (Capital Market Intermediaries) Regulations, 2025.
The circular provides operational clarity for intermediaries, particularly broker dealers and clearing members, and addresses practical concerns surrounding liquid net worth calculation under IFSCA for compliance purposes.
Key Clarifications Issued by IFSCA
Base Capital & Interest-Free Deposits Included
Base minimum capital and interest-free deposits maintained with recognised stock exchanges and clearing corporations shall be treated as part of liquid net worth, strengthening clarity on capital computation for IFSC intermediaries.
Margins Recognised as Liquid Net Worth
Margins maintained by broker dealers and clearing members in relation to their trading activities—whether under IFSC operations or Global Access—shall also qualify as part of liquid net worth under the updated IFSCA margin treatment guidelines.
Liabilities Excluded from Net Worth Computation
While calculating net worth, liabilities are to be excluded, in line with the definition provided under the CMI Regulations. Accordingly, only eligible assets are considered for determining “liquid” net worth as per IFSCA capital adequacy norms.
Immediate Applicability
The circular has come into force with immediate effect, reinforcing clarity and uniformity in compliance assessments across IFSC intermediaries.
This clarification significantly enhances regulatory certainty, particularly for entities with active trading operations and margin-based exposure structures, ensuring that genuine operational capital is appropriately recognised for compliance purposes under GIFT IFSC net worth rules.
Frequently Asked Questions (FAQs)
Q1. What counts as liquid assets?
A. Cash, bank balances, fixed deposits, government securities, and other notified liquid instruments recognised under IFSCA liquid asset guidelines.
Q2. How can foreign parents earmark funds for IFSC branches?
A. Through board-approved allocations and clear supporting documentation identifying IFSC-designated capital to meet IFSC capital requirement compliance.
Q3. What if an entity holds multiple registrations?
A. It must comply with the highest applicable net worth requirement among them under the IFSCA multiple registration capital rule.
Expert Insights – Nexpective Advisors’ Perspective
With deep specialization in IFSC regulatory compliance, Nexpective Advisors supports intermediaries in navigating IFSCA net worth certification and compliance requirements within GIFT City.
- Expertise: Chartered Accountants, Company Secretaries, and financial consultants with hands-on IFSC experience
- Presence: Based in GIFT City, Gandhinagar, with access to IFSCA’s operating environment
- Experience: Assisting multiple registered entities with net worth certification and compliance alignment
- Advisory scope: Covering compliance, audit, valuation, and capital markets regulations
Conclusion – Preparing for Net Worth Readiness
Net worth compliance under IFSCA CMI Regulations, 2025 is a cornerstone for sustainable growth and credibility in GIFT City.
With the compliance window now extended to December 31, 2025, intermediaries should act swiftly to evaluate readiness and document adequacy in line with IFSCA capital adequacy requirements 2025.
Nexpective Advisors provides structured assistance — from capital adequacy assessments to certification and compliance support — helping entities achieve seamless adherence to IFSCA norms and meet GIFT IFSC net worth compliance standards.
Contact Nexpective Advisors for net worth compliance guidance, certification, and tailored advisory solutions for GIFT City intermediaries.
