The International Financial Services Centres Authority (IFSCA), on January 12, 2026, notified the International Financial Services Centres Authority (Capital Market Intermediaries) (Amendment) Regulations, 2026, to further amend the existing regulatory framework governing capital market intermediaries in IFSCs. The amendments aim to enhance operational flexibility, ease of doing business, and rationalisation of compliance requirements for intermediaries operating in IFSCs.
Key changes include the introduction of a provision allowing unified registration for units undertaking multiple capital market activities, expansion of eligible educational qualifications for key managerial personnel to include fintech, science, technology, engineering and mathematics (STEM) disciplines, and reduction of the minimum relevant experience requirement from ten years to five years. The amendments also permit a single principal officer for specified multiple intermediary activities, while mandating a separate vertical head for distribution business activities where multiple activities are undertaken.
Further, the amendments supersede the IFSCA Circular dated February 24, 2021 on recognition of custodians, and revise the net worth requirement for custodians to USD 1 million, with a compliance timeline up to June 30, 2026 for existing custodians to meet the revised norms. These changes are intended to streamline regulatory processes and strengthen the capital market ecosystem within IFSCs.
[IFSCA/GN/2026/005]
