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

Veda Securities, a company incorporated in India, wants to act as a stock broker dealing in securities on a recognised stock exchange in GIFT IFSC. Which authority's framework governs the registration and regulation of such an intermediary operating in the IFSC?

The International Financial Services Centres Authority governs registration and regulation of capital market intermediaries such as stock brokers in GIFT IFSC. It is the unified regulator for the IFSC, so its own intermediary regulations apply rather than SEBI's domestic broker framework.

  1. AReserve Bank of India alone, through its master directions on brokers
  2. BSecurities and Exchange Board of India, through its domestic broker regulations only
  3. CInternational Financial Services Centres Authority, through its capital market intermediary regulationsCorrect
  4. DMinistry of Corporate Affairs, through the Registrar of Companies

Explanation

IFSCA is the unified regulator for financial products, services and institutions in IFSCs and has its own framework for capital market intermediaries. SEBI's domestic broker regulations do not directly govern an entity registered to operate in the IFSC. The RBI and MCA are not the registering authority for IFSC capital market intermediaries.

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