Brief Overview:
SEBI has proposed to do away with the requirement for registered stockbrokers to obtain specific approval from SEBI in order to access the GIFT IFSC.
Currently, stockbrokers are required to obtain approval from SEBI in the form of an NOC before floating subsidiaries or entering into joint ventures to carry out securities market related activities.
Technical Details:
It is proposed that stockbrokers be allowed to undertake securities market related activities in GIFT IFSC by setting up a Separate Business Unit (SBU).
Some key safeguards for SBU are:
1) Separate accounts on arms-length basis;
2) Ring fence its activities from the activities related to Indian securities market;
3) Exclusive engagement of securities market related activities in GIFT-IFSC only; and
4) Segregation of net worth requirement.
The proposal was made by way of a consultation paper. Deadline for comments is 11th April 2025.
JC Takeaway:
Another step to encourage ease of doing business and leverage the infrastructure that is already in place.
For further details, please see:
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