National Supervisory Authority & Licensing Qualification Dossier • Asia-Pacific
IFSCA
India (GIFT IFSC)International Financial Services Centres Authority (GIFT City, India)
Source / Native Reference: 印度国际金融服务中心管理局 (GIFT City)
- Supervisory tier
- Tier-2
- License classes
- 2
- Licensed records
- 0
- Active / regulated
- 0
Statutory Supervisory Mandate & Scope
The International Financial Services Centres Authority (IFSCA), established under the IFSCA Act 2019 in GIFT City, Gandhinagar, is India’s unified regulator for international banking, capital markets, offshore fund management (FME), derivatives clearing, and cross-border fintech operating within India’s International Financial Services Centre.
Prudential Tier Assessment
Tier-2Tier-2 national capital markets, securities, and derivatives supervisory authority in India (GIFT IFSC), IOSCO member standards-aligned.
National licensing qualifications & statutory authorisation classes (IFSCA)
Authorisation categories, permitted institutional and retail activities, minimum initial capital adequacy, and ongoing prudential solvency rules enforced by IFSCA in India (GIFT IFSC).
| License class / code | Official designation | Permitted institutional & retail activities | Minimum initial / base capital | Ongoing prudential & solvency rule |
|---|---|---|---|---|
| Category 1 / Principal Broker-Dealer | Full-Scope Securities & Derivatives Dealer (Market Maker / Principal) | Dealing as principal or market maker in securities, FX, CFDs, futures, options, and underwriting. | USD $150,000 – $500,000 equivalent minimum paid-up capital | Risk-weighted capital adequacy + minimum liquid capital buffer ≥ 25% of annual fixed overheads. |
| Category 2 / Agency Broker & Asset Manager | Securities Brokerage (Agency / STP) & Discretionary Portfolio Management Licence | Order execution, reception and transmission of client orders, discretionary portfolio management, and investment advisory. | USD $75,000 – $150,000 equivalent minimum paid-up capital | Strict client money segregation, best-execution monitoring, and quarterly regulatory financial returns. |
Investor compensation, client money segregation & digital-asset regime
Statutory counterparty protections, custody reconciliation mandates, and virtual-asset licensing status under IFSCA.
National Investor Protection / Compensation Scheme (India (GIFT IFSC))
- Maximum coverage per client
- Subject to statutory national investor protection fund limits and segregated trust priority
- Eligible counterparties & scope
- Retail clients of licensed securities and investment brokerage firms.
IFSCA Client Money & Safe Custody Segregation Rules
- Reconciliation & audit cadence
- Daily reconciliation of segregated client trust bank accounts against client trading ledger balances.
- Approved custodian requirements
- Client funds and securities must be held in bankruptcy-remote statutory trust accounts at licensed commercial banks or central securities depositories.
IFSCA Digital Asset / Tokenized Securities & VASP Regulatory Framework
- Travel Rule, custody & stablecoin rules
- FATF Recommendation 16 Travel Rule enforcement and institutional qualified custody standards.
Primary Governing Statutes & Rulebooks
- Securities and Capital Markets Act of India (GIFT IFSC)
- IFSCA Licensing, Prudential Capital Adequacy & Conduct of Business Rules
- Client Money & Custody Asset Segregation Regulations (India (GIFT IFSC))
- IOSCO Principles of Securities Regulation & National AML/CFT Rulebook
Regulatory Reporting & Audit Obligations
Quarterly capital adequacy returns and annual IFRS audited financial statements submitted to IFSCAAnnual independent auditor attestation on Client Money and Safe Custody complianceTransaction reporting, market abuse surveillance (MAR), and AML/CFT suspicious activity reporting
Cross-Border Equivalence & Passporting
Operates under India (GIFT IFSC) national jurisdiction and IOSCO MMoU cross-border supervisory cooperation.
Supervised institutions & IFSCA licence records in our database
0 licence records referencing IFSCA (0 regulated/registered).
IFSCA (India (GIFT IFSC)): institutional licensing & due diligence FAQ
Key statutory capital, compensation, custody segregation, and verification answers for compliance teams.
What are the primary licensing classes and minimum capital requirements under IFSCA (India (GIFT IFSC))?
IFSCA (International Financial Services Centres Authority (GIFT City, India)) supervises financial institutions in India (GIFT IFSC) under Securities and Capital Markets Act of India (GIFT IFSC) and IFSCA Licensing, Prudential Capital Adequacy & Conduct of Business Rules. Key statutory authorisation classes include: Category 1 / Principal Broker-Dealer (Full-Scope Securities & Derivatives Dealer (Market Maker / Principal) — min. capital: USD $150,000 – $500,000 equivalent minimum paid-up capital); Category 2 / Agency Broker & Asset Manager (Securities Brokerage (Agency / STP) & Discretionary Portfolio Management Licence — min. capital: USD $75,000 – $150,000 equivalent minimum paid-up capital). Ongoing prudential supervision requires strict adherence to capital adequacy and liquidity buffers.
Does IFSCA provide statutory investor compensation and mandatory client asset segregation?
Under IFSCA's framework, investor protection is governed by National Investor Protection / Compensation Scheme (India (GIFT IFSC)) with maximum coverage of Subject to statutory national investor protection fund limits and segregated trust priority (Retail clients of licensed securities and investment brokerage firms.). For client money and custody assets, supervised firms must comply with IFSCA Client Money & Safe Custody Segregation Rules, performing daily reconciliation of segregated client trust bank accounts against client trading ledger balances. with client funds and securities must be held in bankruptcy-remote statutory trust accounts at licensed commercial banks or central securities depositories..
How does IFSCA regulate digital assets, crypto exchanges (VASPs/CASPs), and stablecoins?
IFSCA's digital-asset regime is structured around IFSCA Digital Asset / Tokenized Securities & VASP Regulatory Framework (Regulates security tokens, crypto derivatives, and licensed digital asset intermediaries in India (GIFT IFSC).). Custody and AML/CFT compliance obligations require: FATF Recommendation 16 Travel Rule enforcement and institutional qualified custody standards.
How can I verify an institution's IFSCA licence number and check our 0 recorded licence entries?
Our database currently tracks 0 licence records referencing IFSCA (0 marked regulated or registered). To verify a counterparty at the primary source, open IFSCA's official public register (https://ifsca.gov.in/Directory), search by the exact reference number and legal entity name, and confirm that the firm's domain and permitted activities match its statutory authorisation.
Related regulatory & market structure briefings
Research and compliance analysis from FXOpen Ledger relevant to IFSCA and India (GIFT IFSC).
OTC FX Microstructure
OTC FX Prime-of-Prime Margin Conduits: Cross-Venue Spread Compression and Credit Intermediation Audit
An institutional audit of how non-bank OTC FX dealers and prime-of-prime aggregators intermediate Tier-1 credit lines across G10 and EM currency pairs.
Dealer Execution
CFD Dealer Internalisation Ratios vs. STP Agency Routing: Measuring Toxic Flow and Last-Look Rejections
Evaluating how multi-currency FX and CFD dealers dynamically switch between principal internalisation and straight-through agency hedging.
Statutory licensing classes, base capital rules, and investor protection summaries for IFSCA (India (GIFT IFSC)) are maintained for institutional benchmarking and do not constitute legal advice. Always verify current rulebooks and active firm authorisations directly on IFSCA’s official public register.