SEBI Eases GIFT-IFSC Entry for Stockbrokers with Flexible New Framework:

SEBI Eases GIFT-IFSC Entry for Stockbrokers with Flexible New Framework SEBI has come out with new regulations to ease the process for registered stockbrokers to function in Gujarat International Finance Tech-city (GIFT-IFSC). Under circular SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/61 dated May 2, 2025, brokers no longer require special SEBI sanction prior to extending activities to GIFT-IFSC.

Choices in Operations

Stockbrokers may now have the following three choices of structures for GIFT-IFSC operations:

• As a Separate Business Unit (SBU) within their current entity
• Through a qualifying branch office
• Through a subsidiary company (following existing practice)

Key Safeguards

To ensure regulatory clarity:

• Activities in GIFT-IFSC shall fall within the jurisdiction of the concerned regulatory authority
• There should be strict segregation between domestic business and GIFT-IFSC operations
• Separate financial books and net worth need to be maintained.
• SBUS shall only carry out securities market activities approved by IFSCA.

Important Note for Investors

Protective mechanisms of investors that are applicable in domestic markets will not be applicable to GIFT-IFSC operations, such as

• Stock exchange redressal system of grievances
• Investor Protection Fund (IPF)
• SCORES platform of SEBI

Existing Operators

Existing brokers with existing subsidiaries or joint ventures in GIFT-IFSC may retain existing arrangements or shift to the new SBU model. This shift is a major advance towards ease of doing business, potentially leading to more brokers entering GIFT-IFSC with less regulatory burden.