IFSCA (Capital Market Intermediaries) (Amendment) Regulations, 2026

The International Financial Services Centres Authority notified the International Financial Services Centres Authority (Capital Market Intermediaries) (Amendment) Regulations, 2026, effective from their publication in the Official Gazette. The amendments introduce regulatory flexibility and operational ease for intermediaries operating in IFSCs. A key change allows entities to obtain a unified registration to undertake multiple capital market activities, reducing procedural fragmentation. Eligibility norms for key managerial personnel are broadened by expanding acceptable educational disciplines to include fintech, STEM fields, and by removing the requirement that foreign universities be “recognised.” Experience requirements for certain roles are eased by reducing the minimum from ten to five years. The amendments also rationalise governance by permitting a single principal officer across specified intermediary activities, while mandating a separate vertical head for distribution businesses where multiple activities are undertaken. Additionally, an earlier IFSCA circular on custodian recognition is superseded, and minimum net worth requirements for custodians are fixed at USD 1 million, with transition time granted until June 30, 2026.

INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
NOTIFICATION
Gandhinagar, the 7th January, 2026

International Financial Services Centres Authority (Capital Market Intermediaries) (Amendment) Regulations, 2026

IFSCA/GN/2026/005.—In exercise of the powers conferred by sub-section (1) of Section 28 read with sub­section (1) of Section 12 and sub-section (1) of Section 13 of the International Financial Services Centres Authority Act, 2019 (50 of 2019); Section 30 read with Section 28C of the Securities and Exchange Board of India Act, 1992 (15 of 1992); and Section 25 read with Section 23G of Depositories Act, 1996, the International Financial Services Centres Authority hereby makes the following regulations, further to amend the International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2026 (hereinafter referred to as the principal regulations), namely:-

1. (1) These regulations may be called the International Financial Services Centres Authority (Capital Market Intermediaries) (Amendment) Regulations, 2026.

(2) These regulations shall come into force on the date of their publication in the Official Gazette.

2. In regulation 4 of the principal regulations, in sub-regulation (1), the following proviso shall be inserted, namely:-

“Provided that a unit in IFSC desirous of undertaking multiple activities may obtain a unified registration for such multiple activities, in such manner as may be specified by the Authority.”

3. In regulation 9 of the principal regulations, in sub-regulation (2), in clause (a),

i. for the words “or actuarial science” the words “, actuarial science, fintech, science, technology, engineering or mathematics” shall be substituted; and

ii. the word “recognised” appearing before the words “foreign
university” shall be omitted.

4. In regulation 9 of the principal regulations, in sub-regulation (2), in clause (a), in the first proviso, for the word “ten” the word “five” shall be substituted.

5. In regulation 9 of the principal regulations, in sub-regulation (8), for the first proviso, the following proviso shall be substituted, namely:-

“Provided that an entity with registration as a broker dealer, clearing member, depository participant, investment adviser, research entity, custodian or registered distributor may have the same person as principal officer for these activities:”

6. In regulation 9 of the principal regulations, in sub-regulation (8), after the first proviso, the following proviso shall be inserted, namely:-

“Provided further that an entity undertaking multiple activities, as mentioned in the above proviso, shall have a separate official as a vertical head for its distribution business activities:”

7. In regulation 47 of the principal regulations, after sub-regulation (2), following sub-regulation shall be inserted, namely:

“(2A) On and from the commencement of the International Financial Services Centres Authority (Capital Market Intermediaries) (Amendment) Regulations, 2026, the IFSCA Circular No. F. No. 224/IFSCA/CMD-DMIIT/CUST/2021/1 titled “Recognition as Custodian of assets/securities” dated February 24, 2021, shall stand superseded.”

8. In Schedule-I of the principal regulations, in third column, in row at serial number 4, for the words “As specified by the Authority from time to time” the following shall be substituted:

“USD 1 million

[Custodians already registered with the Authority, if required to infuse or earmark additional funds in accordance with the revised net worth requirements, shall comply with the revised norms by June 30, 2026.]”

PRAVEEN TRIVEDI, Executive Director
[ADVT.-III/4/Exty./609/2025-26]