Brief Overview:

IFSCA introduces its own regulations to prohibit insider trading and unfair trade practices while dealing with securities in IFSCA. The SEBI PIT Regulations and FUTP Regulations now cease to apply.

Technical Details:

The outline of the key points of the newly introduced IFSCA (Prohibition of Market Abuse in Securities Markets) Regulations, 2026 are as follows:

1) Replaces the application of SEBI Regulations: The SEBI PIT Regulations and SEBI FUTP Regulations shall no longer regulate the dealing with securities in IFSCA.

2) Insider trading: Sets out mechanism for (a) not communicating and handling the material non-public information, (b) trading in securities listed / to be listed in IFSCA while possession of the same, and (c) disclosures by the designated persons.

3) Fair practices framework: Sets out mechanism for dealing with securities without any (a) manipulation, (b) fraudulent methods, and (c) unfair trade practices.

4) Code of conduct: Requires the IFSCA listed entities to place internal controls and code of conduct policies for dealing with prevention of market abuse.

Takeaways:

Entities listed or proposing to list or deal with securities in IFSCA to ensure compliance.

For further details, please see:

IFSCA Notification No. IFSCA/GN/2026/012 dated 25 August 2026 – International Financial Services Centres Authority (Prohibition of Market Abuse in Securities Markets) Regulations, 2026

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