IFSCA has issued a Consultation Paper on Remote Broker-Dealers in IFSC. The objective of this consultation paper is to seek comments/views from the public on the concept of Remote Broker-Dealer in IFSC, proposed to be permitted under the IFSCA (Capital Market Intermediaries) Regulations, 2021.
IFSCA has received various proposals from the Stock Exchanges to introduce new products, widen the investor base and deepen the liquidity on the Stock Exchanges. One such proposal pertains to permitting Broker-Dealers to operate remotely from foreign jurisdictions i.e. permit Broker-Dealers to transact on the Stock Exchanges without having a physical presence in IFSC. IFSCA, after due deliberations, has decided to consider this proposal of the Stock Exchange. This would require amendment to Regulation 5 (1) of the IFSCA (Capital Market Intermediaries) Regulations, 2021.
Comments of the public are also sought on the following queries:
- Should a RBD be permitted to onboard clients ? If yes, what should be the likely eligibility criteria/ risk profile of such clients?
- Should the RBD be permitted to transact in equity/ bonds or hybrid securities like REITs/InvITs listed on the Stock Exchange?
- Should IFSCA explicitly define the requirements for a RBD in terms of net worth, country of origin, base minimum capital, etc or should the Stock Exchanges be given the operational flexibility to decide these parameters?
- Any other issues that IFSCA should address while enabling RBD facility.
The comments may be sent by email to Mr. Praveen Kamat, General Manager at praveen.kamat@ifsca.gov.in with a copy to Mr. Shubham Goyal, Assistant General Manager at goyal.shubham@ifsca.gov.in , latest by December 13, 2023, with the subject line “Comments on consultation paper on Remote Broker-Dealers in IFSC.
