The International Financial Services Centres Authority (IFSCA) has issued a comprehensive circular outlining the Regulatory Framework for Global Access in the IFSC.
This new framework, effective from August 12, 2025, consolidates and supersedes previous circulars issued in 2021 and 2024. It lays down the responsibilities, operational norms, and compliance mechanisms for Global Access Providers (GAPs), Broker Dealers, and Introducing Brokers operating in IFSCs like GIFT City.
Why This Matters
The need for seamless access to global markets is increasing, driven by factors like higher returns, hedging opportunities, and arbitrage prospects. Recognizing this, the IFSCA has created a structured path to regulate such access in a transparent and investor-protective environment.
Key Highlights of the Framework
Authorization Requirement: Entities wishing to operate as a Global Access Provider must obtain authorization from IFSCA. Existing entities have until October 31, 2025 to comply.
Capital Requirements:
- GAPs: Minimum USD 500,000 net worth
- GAPs trading on proprietary basis only: USD 200,000
- Other broker dealers trading via GAPs: USD 100,000
Eligible Clients: Both resident and non-resident investors are permitted to access global markets, subject to FEMA guidelines and Liberalized Remittance Scheme (LRS) limits for Indians.
Permitted Products: Only those financial products recognized under IFSC rules are allowed. Access to crypto-assets, USD-INR derivatives, or any instrument listed in the IFSC is prohibited under global access.
Operational Flexibility:
Broker Dealers can act as GAPs, operate via foreign brokers, or serve as Introducing Brokers.
GAPs can onboard clients directly or through referral arrangements with Indian or foreign entities.
Disclosure & Compliance: GAPs must maintain clear client disclosures on risks, fees, taxation, and account structure. They’re also mandated to have robust systems for AML/CFT compliance, client grievance redressal, and risk management.
Fees: The authorization fee is USD 10,000, with recurring quarterly fees based on turnover. Separate fee caps apply to derivative and non-derivative transactions.
Segregation of Funds: All client and proprietary funds must be kept in separate bank accounts in an International Banking Unit within IFSC.
Periodic Reporting & Audit: GAPs are required to file quarterly reports with IFSCA and undergo annual audits by a qualified chartered accountant or company secretary.