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

Tara Brokers, a foreign broker, wants to set up a branch in GIFT IFSC to deal as a broker-dealer. Which statement best reflects the eligibility route available to it?

Tara can apply through a permitted structure such as an IFSC branch of a foreign entity, subject to IFSCA's conditions. Foreign firms are not barred, and being regulated in the home country does not remove the requirement to obtain IFSCA registration.

  1. AOnly Indian-incorporated companies can ever be registered
  2. BA person may apply through a permitted form, including a branch of a foreign entity or an IFSC-incorporated entity, subject to IFSCA's conditionsCorrect
  3. CForeign entities are barred from any IFSC registration
  4. DA foreign entity needs no registration if regulated in its home country

Explanation

IFSCA allows applicants to be registered through permitted structures, which include IFSC-incorporated companies and branches or subsidiaries of regulated foreign entities, subject to conditions. Home-country regulation does not remove the need for IFSCA registration, and foreign entities are not barred.

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