Brief Overview:
IFSCA has proposed changes to the regulatory framework for Capital Market Intermediaries (CMI) as regards elements of registration, regulation & supervision.
Some of the interesting changes proposed being, introduction of research entity as a new category, global access for broker dealers (now not necessarily registered with IFSC exchanges).
IFSCA has issued a consultation paper to seek comments from the stakeholders on the proposed CMI Regulations.
Technical Details:
Proposed amendments:-
1) Research Entities- new category
Entities that provide for research reports with respect to securities or financial products including making ‘buy/sell/hold’ recommendation on particular stocks, giving price targets etc. to fall within the purview of CMI Regulations.
2) Guidelines applicable to distributors and ESG Ratings & Data Products Provider subsumed
Distribution and ESG Rating & Data Products Provider as an activity are governed by specific set of guidelines. Under the new framework, these guidelines have been subsumed under the revised framework.
3) Allowing Broker Dealers to access Global markets
Broker dealers to access the Global Markets without the need to register itself as a trading member of a stock exchange in the IFSC.
4) HR
To have Principal Officer, Compliance officer and sufficient manpower based out of IFSC.
There have been other changes such as the revising the net worth requirements, alignment of definitions etc.
Comments on the consultation paper sought by 12th December 2024.
For further details, please see:
International Financial Services Centres Authority
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