The International Financial Services Centres Authority (IFSCA) on August 11, 2026, issued the Public Comments on the draft IFSCA (Prohibition of Market Abuse in Securities Markets) Regulations, 2026.
The following has been stated:
• The comments broadly support the proposed framework but seek greater clarity, proportionality and alignment with established international and SEBI frameworks, particularly because IFSC entities operate in a cross-border environment. Stakeholders have requested a separate applicability clause clearly specifying the entities, products and securities covered, and clarifying the treatment of Global Access Providers (GAPs) dealing in foreign exchanges.
• Stakeholders have proposed stronger disclosure and monitoring requirements, including disclosure of securities holdings by KMPs, directors, promoters and promoter-group members within seven days of appointment/change, followed by periodic disclosures. They have also suggested allowing listed entities to require disclosures from other connected persons and clarifying that GAP-related obligations should be limited to securities/products within IFSCA jurisdiction.
• Regarding market manipulation and fraudulent practices, comments seek clarification that terms such as “aid”, “assist” and “participate” should involve active involvement or knowledge and should not unintentionally impose liability on execution-only intermediaries.
• For compliance and surveillance, suggestions include prescribing minimum standards for Chinese walls, internal controls and codes of conduct, adopting a proportionate compliance framework based on the size and nature of the intermediary, and establishing an IFSC-wide Market Abuse Surveillance Repository (MASR) for sharing anonymised suspicious-pattern information and detecting coordinated manipulation across entities.
• Finally, comments suggest extending the framework to clearly address primary-market transactions such as IPOs, private placements and structured issuances, creating an Investor Protection and Education Fund (IPEF) in GIFT City, and introducing a whistleblower/informant mechanism with confidentiality, protection against retaliation and possible monetary incentives, similar to the SEBI framework.
