GIFT City’s New Rules: How India is Opening its Doors to Global Investors
India is making a concerted push to establish itself as a formidable player on the global financial stage, and at the heart of this ambition lies the International Financial Services Centre (IFSC) in Gujarat’s GIFT City. In a significant move to bolster the IFSC’s role as a gateway for international capital, the International Financial Services Centres Authority (IFSCA) has unveiled a revamped regulatory framework for “Global Access.” This new regime, detailed in a circular from August 2025 and coming into force from September 12, 2025, is designed to streamline operations, enhance investor protection, and align India’s financial markets with global best practices.
The core objective of the new framework is to create a clear and robust system for investors to access international markets through intermediaries located in the IFSC. These intermediaries, known as Global Access Providers (GAPs) and broker-dealers, facilitate cross-border securities transactions, allowing Indian investors to diversify their portfolios globally and foreign investors to access Indian markets more efficiently. The updated regulations replace previous circulars, creating a unified and clearer set of rules for these crucial market players.
This regulatory overhaul comes on the heels of the IFSCA (Capital Market Intermediaries) Regulations, 2025, which laid the groundwork for supervising capital market intermediaries within the IFSC. It also harmonizes the rules with a SEBI circular that permitted SEBI-registered stockbrokers to operate in GIFT City, creating a more seamless connection between domestic and international financial activities. So, what are the key changes and what do they mean for the future of investment in India?
One of the most critical amendments is the introduction of stricter minimum net worth and capital requirements for GAPs and broker-dealers. By setting adequate capital buffers, the regulator aims to ensure that these firms are financially sound and capable of withstanding market shocks. This is a fundamental step in building a resilient financial ecosystem and boosting investor confidence. Existing entities have been given a deadline until October 31, 2025, to comply with these enhanced capital norms.
Another major focus of the new framework is enhancing client protection through improved disclosures and transparency. The regulations now mandate significantly tighter disclosure requirements. For instance, by October 31, 2025, all GAPs must display a clear disclaimer on every client’s login screen. Furthermore, they must provide detailed fee structures upfront, covering all charges, including onboarding, exit, and account transfer fees. This move is aimed at empowering investors with all the necessary information to make informed decisions and preventing any hidden costs, a common concern for retail investors engaging in cross-border transactions.
The IFSCA has also sharpened its focus on risk management. The new amendments introduce more prescriptive rules for risk handling, data localization within the IFSC, and the need for periodic audits. The authority has also strengthened its inspection powers and requires more detailed quarterly reporting from intermediaries. This will allow for more effective ongoing supervision and help in the early identification of potential risks, safeguarding the stability of the market.
To further streamline the ecosystem, the framework also places certain restrictions on the products that can be offered. Specifically, it prohibits GAPs from providing access to products that are already available on the exchanges within the IFSC, particularly in the derivatives and forex markets. This is designed to avoid regulatory duplication and protect the dominance of the IFSC’s own market venues, encouraging trading to happen within its regulated environment.
Finally, the circular introduces a new fee structure for intermediaries, which became applicable from October 1, 2025. This includes turnover-based fees with a quarterly cap, marking a departure from previous practices and creating a more predictable cost environment for market participants.
These strategic reforms are part of a broader vision outlined in the Union Budget 2025, which introduced several measures to strengthen GIFT City’s role as a global financial hub. These include enhancing tax incentives, providing regulatory clarity, and simplifying rules for fund managers and corporate treasury centers to attract diverse financial services businesses. The goal is to position the IFSC as a competitive and attractive destination for global capital, rivaling established financial centers like Singapore and Dubai.
For investors, these changes signal a maturing of India’s financial market infrastructure. The stricter norms for intermediaries and enhanced disclosure requirements provide a greater layer of security and transparency. For Foreign Portfolio Investors (FPIs) and global businesses, the streamlined framework and clearer rules reduce regulatory friction and make it easier to operate in India. By aligning with global standards, the IFSCA is sending a clear message: India is open for business and is serious about creating a world-class environment for financial services. As these regulations are implemented, they are expected to broaden India’s market base, support long-term capital formation, and solidify GIFT City’s position as a vital node in the global financial network.