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CS Professional · IFSCA - Regulations, Listing and Compliances · Capital Market Intermediaries

Arjun Capital Ltd. is registered with IFSCA as a capital market intermediary in GIFT IFSC. It wishes to add a new category of intermediary activity not covered by its existing registration. What is the correct approach under the IFSCA framework?

Arjun Capital must obtain IFSCA registration or approval for the additional activity before starting it. An intermediary can operate only within the scope of its IFSCA certificate, and neither domestic SEBI permission nor an exchange no-objection alone authorises new activity in the IFSC.

  1. AStart the activity and inform IFSCA in the annual report
  2. BSeek registration or approval from IFSCA for the additional activity before undertaking itCorrect
  3. CObtain a no-objection certificate from the stock exchange only and proceed
  4. DCarry on the activity if it is permitted in the domestic Indian market by SEBI

Explanation

An intermediary may carry on only those activities for which it holds a certificate or has IFSCA approval. Domestic permission from SEBI does not extend to the IFSC, and an exchange NOC alone is not a substitute for IFSCA registration. Hence prior registration or approval for the new activity is required.

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