FinMin Invites Public Comments on
Proposed International Financial Services Centres
Authority (Capital Market Intermediaries) Regulations, 2021 by August 18, 2021
International Financial Services Centres
Authority (IFSCA) has been established as a unified regulator to develop and regulate
financial products, financial services and financial institutions in the International
Financial Services Centres (IFSCs) in India.
The intermediaries play an important role by providing the intermediation
facilities between their clients and the various regulated financial products and
financial services in the IFSC. The intermediaries are also essential for building
the ecosystem of capital markets in the IFSC.
IFSCA proposes to enact 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 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.
The consultation paper is available on the website of IFSCA at
the weblink - https://ifsca.gov.in/PublicConsultation.
Comments and suggestions from public are invited on the proposed
Intermediaries Regulations by August 18, 2021.