The International Financial Services Centres Authority vide its press release dated 25th November 2021 has permitted the broker dealers in IFSC to access global exchanges outside IFSC with adequate checks and balances.
The broker dealer in the IFSC is permitted to access global access through any of the following manners:
- Cross-border arrangement with an entity providing access to an exchange outside IFSC, provided that such entity is a regulated entity in the other jurisdiction; or
- Registering itself as a trading member of an exchange outside IFSC, provided that the broker dealer is trading on its proprietary account and does not have any client dealing.
The broker-dealers play a significant role in development of the capital market ecosystem, particularly retail participation. The Expert Committee Report on IFSC International Retail Business Development had recommended that the broker dealers in the IFSC may be provided access to global markets.
Based on the representations received from stakeholders at various forums and in line with the practices in some of the competing offshore jurisdictions, the broker dealers in the IFSC have been permitted access to global exchanges outside IFSC with adequate checks and balances.