Regulatory Alerts2025-05-02
SEBI Circular on Facilitating Stock Brokers to Undertake Securities Activities in GIFT-IFSC under a Separate Business Unit
The Securities and Exchange Board of India (SEBI) has eliminated the requirement for specific prior approval, allowing registered stock brokers to conduct securities market activities in GIFT-IFSC through a Separate Business Unit (SBU) or subsidiary. To ring-fence these operations from the domestic Indian market, the regulator mandates strict segregation of accounts, net worth, and activities, ensuring an arms-length relationship between the SBU and the broker's domestic business. Consequently, investors utilizing SBU services are excluded from the jurisdiction of SEBI's grievance redressal mechanisms and Investor Protection Fund, as these activities fall under the regulatory authority of the International Financial Services Centres Authority (IFSCA).