Brief Overview:
GIFT IFSC has taken a significant step towards deepening its electronic trading ecosystem. The International Financial Services Centres Authority (Electronic Trading Platforms) Regulations, 2026 establish a dedicated framework for electronic trading platforms (“ETPs”) operating in the IFSC, covering eligible instruments such as securities, money market instruments, foreign exchange, derivatives and Indian Rupee-denominated instruments settled in a specified foreign currency.
Technical Details:
Key Points at a Glance
1) Registration trigger
(a) ETP operators based in the IFSC must obtain IFSCA registration.
(b) Eligible overseas operators from recognised jurisdictions, including Singapore, the US, the UK, the EU and the DIFC, may access the framework through branch.
2) Limited exemptions
(a) An IBU or parent bank acting as the sole quote provider and counterparty is exempt.
(b) Offshore platforms serving IFSC entities from outside the IFSC are also exempt.
3) Core compliance guardrails
(a) Capital: Minimum net worth of USD 200,000, subject to higher IFSCA requirements.
(b) Governance: Board-approved rules on access, onboarding, risk management and dispute resolution.
(c) Market conduct: Transparent trading rules, surveillance and controls against abuse, including for algorithmic trading.
(d) Operational resilience: Robust technology, cybersecurity, business continuity and disaster recovery arrangements.
(e) Clearing: IFSCA-approved clearing and settlement, with separate authorisation for fund settlement services.
(f) Data and reporting: Confidentiality, eight-year record retention and prescribed filings.
Takeaways:
The ETP Regulations create a structured route for domestic and recognised overseas players to build regulated electronic trading platforms in GIFT IFSC. Operators should now map their activities against the registration and exemption framework and align their governance, technology, surveillance, clearing and reporting arrangements before launch or expansion.
For further details, please see:
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY (ELECTRONIC TRADING PLATFORMS) REGULATIONS, 2026
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