The International Financial Services Centres Authority has proposed a regulatory framework for the intermediaries in the capital markets operating in IFSC, focusing on ease of doing business and consistent with the fundamental principles laid down by the International Organization of Securities Commissions.
The proposed IFSCA (Capital Market Intermediaries) Regulations, 2021 (Intermediaries Regulations) inter alia provide for regulatory requirements in respect of registration, obligations and responsibilities, inspection and enforcement of various types of capital market intermediaries such as broker dealers, clearing members, depository participants, investment bankers, portfolio managers, investment advisers, custodians, credit rating agencies, debenture trustees and account aggregators.
Further, the proposed Intermediaries Regulations envisage registered capital market intermediaries to undertake cross-border business in capital markets in India and foreign jurisdictions, subject to certain conditions such as ring fencing of operations, appropriate risk management and internal controls, maintenance of records etc.
IFSCA has invited comments and suggestions from public on the proposed Intermediaries Regulations by 18th August, 2021 and the consultation paper is available on the website of IFSCA at the weblink – https://ifsca.gov.in/PublicConsultation.
