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

Veda Securities Pvt Ltd, an Indian broker, wants to offer trading services in securities listed on a stock exchange in GIFT IFSC. Under the IFSCA Capital Market Intermediaries framework, what must it do before carrying on such activity?

The firm must obtain registration from IFSCA as a capital market intermediary, for example a broker-dealer, before operating in the IFSC. Its SEBI registration does not cover IFSC activity, and exchange approval or company registration cannot replace IFSCA registration.

  1. AObtain registration from IFSCA as a capital market intermediary, such as a broker-dealer, in the IFSCCorrect
  2. BRely on its existing SEBI registration without any IFSCA approval
  3. CSeek approval only from the stock exchange in the IFSC
  4. DRegister with the Registrar of Companies in the IFSC alone

Explanation

Capital market intermediaries in an IFSC must be registered with IFSCA under its Capital Market Intermediaries Regulations. A SEBI registration does not authorise IFSC activity, and exchange membership or incorporation formalities are not substitutes for IFSCA registration.

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