GIFT City Newsletter | March 2026

The GIFT International Financial Services Centre ("GIFT IFSC"), established in Gandhinagar, Gujarat, is India's first international financial services centre with the intent of catering to global MNCs and financial institutions in alignment with international standards of business. To ensure that the utmost benefits can be provided, the entire zone has been equipped with world-class infrastructure akin to global standards. This newsletter navigates the journey of GIFT IFSC, and the International Financial Services Centres Authority ("IFSCA") set up under the International Financial Services Centres IFSCA Act 2019.

IFSCA, as a unified regulator, is also headquartered at GIFT IFSC and is committed to providing a sound and well-structured regulatory environment by providing a single window clearance system. The IFSCA has been able to achieve this through the unification of the powers previously held by four separate regulators: the Reserve Bank of India ("RBI"), the Securities and Exchange Board of India ("SEBI"), the Insurance Regulatory and Development Authority of India ("IRDAI"), and Pension Fund Regulatory and Development Authority of India ("PFRDAI").

We are providing transactional updates, including a bird's eye view of legal and regulatory updates related to the GIFT IFSC.

GIFT City Launches Women in Fintech Accelerator for Women-Led Startups

March 26, 2026: GIFT City has launched the Women in Fintech Accelerator under the GIFT International Fintech Innovation Hub ("GIFT IFIH"), aimed at strengthening participation of women-led startups within the IFSC ecosystem by addressing barriers such as limited investor access and fundraising preparedness. The hybrid programme combines an in-person immersion at GIFT City with a virtual phase featuring curated investor engagements, structured mentorship, and investor matchmaking. Over the past year, GIFT IFIH has supported 37 startups across digital banking, regtech, insurtech, and cross-border financial services.

DLL Analysis

This initiative reinforces GIFT City's push for inclusive fintech innovation. Fintech startups should explore IFSCA's sandbox and innovation hub frameworks as potential entry points into the IFSC ecosystem.

Source: ANI (March 26, 2026)

GIFT City Plans New International School to Support Growing Residential Community

March 26, 2026: GIFTCL has invited bids to develop a new international school on Building Footprint 40-C in the Domestic Tariff Area, offering globally recognized curricula such as IB or CAIE, with a minimum built-up area of 3.23 lakh square feet, to meet the rising demand from the over 1,100 licensed entities and growing expatriate community at GIFT City. The project, expected to be completed within three years, reflects GIFT City's evolution from a business district into a fully livable smart urban township.

DLL Analysis

The project represents a convergence of education law, urban development regulation, and public procurement norms. It underscores GIFT City's evolution into a livable township while ensuring that international standards are embedded within India's legal framework. The school will serve as a cornerstone for expatriate integration, but its success depends on strict compliance with both Indian and international accreditation requirements.

Source: DeshGujarat (March 26, 2026)

Grant of Qualifying Central Counterparty status to IIBX operating in GIFT IFSC

March 25, 2026: IFSCA granted Qualifying Central Counterparty ("QCCP") status to the India International Bullion Exchange IFSC Ltd. ("IIBX"), recognising its clearing and settlement framework as compliant with global standards, particularly the CPMI-IOSCO Principles for Financial Market Infrastructures ("PFMI"). The designation also classifies IIBX as a systemically important Market Infrastructure Institution ("MII"). Thereby subjecting it to enhanced regulatory oversight and strengthening its role in providing efficient, secure, and internationally aligned clearing and settlement for bullion transactions within GIFT IFSC.

DLL Analysis

The grant of QCCP status significantly strengthens IFSC's market infrastructure by aligning IIBX with global clearing standards. It further enhances risk management and investor confidence, and positions GIFT IFSC as a competitive global hub for bullion trading and settlement.

Source: IFSCA Website [Press Release dated March 25, 2026]

IFSCA hosts the 2nd edition of Talent Summit 2026 at GIFT City

March 23, 2026: IFSCA hosted the 2nd edition of the Talent Summit 2026 at GIFT City on March 19, 2026, to focus on human capital development, skill building, and industry-academia collaboration for the IFSC ecosystem. The summit highlighted initiatives to build a globally competitive talent pool, support capacity building, and align workforce development with the evolving needs of financial services in IFSC.

DLL Analysis

The initiative underscores IFSCA's strategic focus on developing a skilled talent ecosystem, which is critical for sustaining IFSC's growth, enhancing global competitiveness, and supporting the expansion of financial services across sectors. The summit highlights the importance of human capital development in IFSC's growth strategy, positioning GIFT City as a global talent hub and supporting long term ecosystem sustainability.

Source: IFSCA Website [News dated March 23, 2026]

Government Eases Licensing Norms for Foreign Ships in GIFT City to Boost Global Trade

March 21, 2026: The Government of India has decided to ease licensing requirements for Indian entities chartering foreign-flagged ships for overseas operations, removing the obligation to obtain a license from the Director General of Maritime Administration when hiring foreign vessels for routes that do not involve Indian ports. The reform, to be formalized through a gazette notification by the Ministry of Ports, Shipping and Waterways, follows industry representations from entities operating out of GIFT City and recommendations by IFSCA, which has been actively pushing for reforms to promote ship leasing and maritime financing from India. The earlier framework was widely viewed as a regulatory bottleneck, causing delays in finalizing charter agreements and adding compliance burdens in time-sensitive shipping transactions involving purely international cargo routes. The move is aligned with India's broader strategy to onshore global maritime business, including ship leasing and financing, currently dominated by established international centres, and is expected to attract more shipping and leasing firms to set up operations in GIFT City.

DLL Analysis

This reform limits the Director General of Maritime Administration's jurisdiction to voyages involving Indian ports, exempting overseas operations and thereby reducing compliance burdens. Formalized through a gazette notification, it secures statutory legitimacy while aligning India's maritime laws with global practices and supporting IFSCA's push to promote ship leasing and financing from GIFT City. Overall, the change strengthens India's role as a maritime finance hub, lowers barriers for foreign-chartered vessels, and provides greater legal certainty for firms setting up operations in India.

Source: BW Online Bureau (March 21, 2026)

IFSCA Directs IBUs and FC/FUs to Extend Benefits under Government's Export Factoring Scheme

March 19, 2026: IFSCA has issued Circular e.F.No. IFSCA-FCR0ITFS/3/2025-Banking, directing all IFSC Banking Units ("IBUs") and Finance Companies/Units ("FC/FUs") undertaking factoring activity to participate in the Government of India's "Support for Alternative Trade Instruments under Export Promotion Mission, Niryat Protsahan" scheme ("Scheme"), announced by the Directorate General of Foreign Trade ("DGFT") vide Trade Notice No. 25/2025-26 dated February 20, 2026.

The Scheme, launched on a pilot basis, aims to improve access to export finance for MSMEs participating in international value chains, with a specific focus on export factoring. Both recourse and non-recourse export factoring arrangements, denominated in Indian Rupees or freely convertible foreign currencies, entered into between eligible MSMEs and RBI or IFSCA-regulated entities are covered. IBUs and FC/FUs undertaking factoring must extend benefits in the form of interest subvention or equivalent cost support on the export factoring interest cost element and ensure compliance with all prescribed operational requirements including claim submission, reporting obligations, and timelines.

DLL Analysis

This circular channels the IFSC's international financial infrastructure towards a national trade policy objective by bringing IBUs and IFSCA-regulated FC/FUs within the Government's export factoring scheme. Eligible institutions should review the DGFT's operational guidelines promptly to assess eligibility criteria, subvention mechanics, and reporting timelines.

Source: GIFT IFSCA website [Circular e.F.No. IFSCA-FCR0ITFS/3/2025-Banking dated March 19, 2026]

IFSCA's Measures in relation to ensuring substance in Capital Market Intermediaries in the GIFT IFSC

March 19, 2026: IFSCA undertook supervisory actions against the non-compliant capital market intermediaries, highlighting deficiencies in infrastructure, personnel presence, and regulatory adherence.

CMIs are required to demonstrate genuine operational presence in IFSC, including adequate office space, manpower, and infrastructure. Further, IFSCA has taken action against non-compliant entities, reinforcing adherence to regulatory standards. There was emphasis on ensuring that IFSC entities are not merely registered but actively conducting business operations within the jurisdiction.

DLL Analysis

This enforcement action underscores IFSCA's commitment to regulatory discipline and operational substance, ensuring that IFSC entities maintain a genuine presence and comply with governance standards.

Source: IFSCA Website [Press Release dated March 19, 2026]

Wipro Launches GIFT City Hub to Boost AI-Led BFSI Transformation

March 19, 2026: Wipro Ltd has launched a new hub at GIFT City, Gandhinagar, aimed at strengthening its capabilities in delivering AI-led solutions for global banking, financial services, and insurance (BFSI) clients. The facility, aligned with Wipro's Intelligence platform, will focus on digital banking, capital markets, regulatory technology, risk and compliance, and core platform modernization, enabling the company to co-innovate with clients and embed AI into financial workflows. The hub will initially operate with 150 seats, scalable to 500 based on client demand, and reflects Wipro's commitment to developing local talent in Gujarat by leveraging the region's growing technology and talent ecosystem. Sanjeev Jain, Chief Operating Officer at Wipro, described the GIFT City presence as a strategic investment to scale the impact of Wipro Intelligence for the global BFSI industry and deepen long-term client engagement.

DLL Analysis

Wipro's new hub at GIFT City carries legal significance mainly through its integration into the SEZ framework overseen by IFSCA. By operating within this regime, Wipro leverages a distinct regulatory and tax environment tailored to global financial services, ensuring compliance while benefiting from incentives designed to attract fintech and BFSI innovation. The move underscores lawful alignment with India's policy of promoting technology-driven financial services and highlights regulatory support for embedding AI into risk, compliance, and capital market workflows.

Source: CNBC TV18 (March 19, 2026)

Consultation Paper on proposed regulatory framework for Trust and Company Service Providers (TCSP) and Special Purpose Vehicles (SPVs) for Leasing Activities in IFSC

March 17, 2026: The released consultation paper is particularly in the context of aircraft and asset leasing structures. The framework seeks to formalize service providers involved in incorporation, administration, and management of SPVs used in leasing transactions. The key highlights for the proposed regulatory framework are as follows:

1. Introduction of TCSP Framework: Recognition and regulation of TCSPs as service providers responsible for incorporation, administration, and compliance management of SPVs in IFSC.
2. Structured SPV Framework for Leasing: Formalization of SPVs as key vehicles for leasing transactions, with governance, ownership, and operational clarity for leasing structures.
3. Regulatory Oversight and Compliance Requirements: Prescription of eligibility, fit and proper criteria, and compliance obligations for TCSPs to ensure transparency and proper functioning of SPVs.

DLL Analysis

The consultation paper proposes a structured legal framework for aircraft and asset leasing in IFSC by formally recognising Trust or Company Service Providers (TCSPs) as regulated entities responsible for incorporation and compliance of SPVs. This introduces a clearer governance and accountability for SPVs used in leasing, while imposing eligibility and fit and proper criteria on TCSPs to ensure transparency. The move strengthens regulatory oversight, reduces risks of misuse, and provides a more predictable legal environment for international leasing transactions routed through GIFT City.

Source: GIFT IFSCA website [Consultation Paper dated March 17, 2026]

IFSCA Issues Revised FinTech Sandbox Framework

March 16, 2026: IFSCA has issued a comprehensive revised framework (eF.No.: 505/IFSCA-FTec0FTEF/1/2023) replacing the earlier "Framework for FinTech Entity in the IFSCs" dated April 27, 2022. The revised framework, effective immediately, supersedes all prior sandbox-related regulatory instruments while introducing a more structured and expansive architecture for FinTech innovation within IFSCs.

1. Four Sandbox Tracks: The framework introduces four distinct testing environments: (a) the IFSCA FinTech Regulatory Sandbox ("FRS"), permitting live testing with real customers under controlled conditions; (b) the IFSCA FinTech Innovation Sandbox ("FIS"), enabling isolated testing using market data without physical IFSC presence; (c) the Inter-Operable Regulatory Sandbox ("IoRS"), for hybrid products straddling multiple domestic financial sector regulators with IFSCA as principal regulator; and (d) the Overseas Regulatory Referral Mechanism ("FinTech Bridge"), facilitating cross-border sandbox cooperation under existing MoUs.
2. Eligibility: Domestic entities (companies, LLPs, DPIIT-registered startups, entities regulated by domestic financial sector regulators) and foreign entities (provided they are not incorporated in FATF high-risk jurisdictions) are eligible. Individuals affiliated with recognised research institutions, incubators, or accelerators are also eligible. Applicants must first assess applicability of the IFSCA (TechFin and Ancillary Services) Regulations, 2025 before applying.
3. Two-Stage Application Process: Applicants must first submit a Preliminary Application through SWIT, assessed within 30 days. Only upon acceptance may a Final Application be filed with the applicable fee. In-principle approval, if granted, is issued within 60 days, following which conditions must be fulfilled within 30 days before a Limited Use Authorisation ("LUA") is granted.
4. Testing Stage and Reporting: The testing stage runs for a maximum of 12 months, extendable by 6 months at IFSCA's discretion. FinTech Sandbox Entities ("FSEs") must submit monthly status reports by the 10th of each succeeding month, a final report within 30 days of exit, and maintain all test records for 7 years.
5. User Protection: FSEs must make full disclosure to users of sandbox risks, obtain written acknowledgment, and disclose applicable compensation terms, with express written consent required before user onboarding.

DLL Analysis

The revised framework upgrades IFSCA's innovation infrastructure from a single sandbox model to a multi-track architecture serving a broader range of FinTech profiles. The explicit inclusion of the IoRS and FinTech Bridge signals IFSCA's intent to position GIFT IFSC as a global node for collaborative regulatory innovation. Entities exploring FinTech opportunities in IFSC should evaluate which sandbox track best aligns with their product stage and target market.

Source: GIFT IFSCA website [Circular eF.No.: 505/IFSCA-FTec0FTEF/1/2023 dated March 16, 2026]

Consultation Paper on proposed Amendments in CMI Regulations and Master Circular with respect to Credit Rating Agencies

March 16, 2026: IFSCA has released a consultation paper proposing targeted amendments to the IFSCA (Capital Market Intermediaries) Regulations, 2024 and the Master Circular for Credit Rating Agencies. Focusing on withdrawal of ratings, record keeping, and disclosure of private ratings, permissible activities, and dissemination. The key highlights are as follows:

1. Principle-Based Approach for Withdrawal of Ratings: Amendment to Regulation 28(5) to clarify that situations for withdrawal of ratings are illustrative and not exhaustive, allowing flexibility subject to CRA policies.
2. Enhanced Disclosure and Transparency Requirements: Continued emphasis on disclosure of reasons for rating withdrawal and improved dissemination practices in line with IOSCO standards.
3. Operational Clarity for CRAs: Proposed changes relating to record-keeping, permissible activities, and treatment of private ratings to align with evolving market practices.

DLL Analysis

The proposed amendments mark a shift towards a more principle-based and flexible regulatory framework for CRAs. Particularly by modifying Regulation 28(5) to allow broader discretion in rating withdrawal while maintaining transparency through mandatory disclosures. This is expected to align IFSC's credit rating regime with global practices and enhance adaptability to evolving market dynamics without compromising investor protection.

Source: GIFT IFSCA website [Consultation Paper dated 16th March 2026]

Echo Re Opens Reinsurance Branch in GIFT City

March 16, 2026: Zurich-based reinsurer Echo Re, a wholly owned subsidiary of Germany's DEVK Group, has received approval from IFSCA to establish a reinsurance branch office at GIFT City, reinforcing the hub's growing prominence as a global reinsurance destination. Echo Re has maintained a presence in the Indian insurance market for over a decade, building a well-diversified treaty reinsurance portfolio across P&C and specialty lines.

DLL Analysis

Echo Re's branch approval is legally transformative. It strengthens India's reinsurance ecosystem, provides Echo Re with enforceable market access under Indian law, and underscores GIFT City's emergence as a global reinsurance hub.

Source: GIFT News (March 16, 2026)

Corrigendum to the Fee Structure Circular - Clarification on Date of Supersession

March 13, 2026: IFSCA has issued Circular IFSCA-DTFA/2/2026, being a corrigendum to the Fee Structure Circular IFSCA-DTFA/1/2026 dated March 02, 2026 ("Fee Circular"), addressing a textual ambiguity that had prompted clarification requests from regulated entities. The phrase "date of issuance" in Clause 15.1 of the Fee Circular has been substituted with "date of commencement," clarifying that the supersession of the four earlier circulars takes effect from the operative date of the Fee Circular, i.e., the beginning of FY 2026-27, and not from its date of issuance on March 02, 2026. The consolidated updated version of the Fee Circular has been attached as Annexure-A to the corrigendum. The Authority has reiterated that the Fee Circular is applicable for FY 2026-27 and onwards.

DLL Analysis

While seemingly a minor editorial correction, substituting "issuance" with "commencement" carries meaningful legal significance, resolving ambiguity around whether obligations under the superseded circulars continued to apply between March 02, 2026, and the start of FY 2026-27. Entities should refer to the consolidated Annexure-A version as the definitive reference document going forward.

Source: GIFT IFSCA website [Circular IFSCA-DTFA/2/2026 dated March 13, 2026]

Consultation Paper on Proposed IFSCA (Managing General Agents) Regulations, 2026

March 13, 2026: IFSCA issued a consultation paper proposing a comprehensive regulatory framework for Managing General Agents ("MGAs"). This recognises them as a distinct category of insurance intermediaries with delegated authority from foreign insurers for underwriting and claims management. The key highlights include:

1. Recognition of MGAs as a Separate Intermediary Class: MGAs are proposed to be recognised as standalone insurance intermediaries authorised to undertake underwriting, solicitation, premium collection, and claims settlement functions on behalf of foreign insurers.
2. Mandatory Registration Requirement: No entity shall act as an MGA in IFSC without obtaining a Certificate of Registration from IFSCA (Regulation 4), ensuring regulatory oversight.
3. Binding Authority Agreement (BAA): MGAs must operate under a legally enforceable agreement with foreign insurers defining the scope and limits of delegated authority.
4. Eligibility Criteria and Entry Norms: Applicants must satisfy conditions such as valid registration in home jurisdiction, FATF-compliant jurisdiction status, and "fit and proper" requirements for promoters and key personnel (Regulation 5).
5. Supersession of Existing Framework: The proposed regulations seek to replace the earlier joint-registration model under the IFSCA (Registration of Insurance Business) Regulations, 2021, establishing a dedicated MGA regime.

DLL Analysis

The framework prescribes requirements relating to capital, net worth, infrastructure, IT systems, and appointment of a Principal Officer responsible for regulatory compliance. The proposed regulations introduce a new specialized intermediary framework within IFSC's insurance ecosystem. This is expected to deepen insurance market participation, improve efficiency in risk placement and claims management, and strengthen IFSC's positioning as a competitive international insurance hub.

Source: IFSCA Website [Consultation Paper dated March13, 2026]

Public Consultation on draft guidelines on capital relief and prudential requirements for factoring transactions for FC/FUs

March 11, 2026: IFSCA issued a public consultation proposing guidelines on capital relief and prudential requirements for factoring transactions undertaken by Finance Companies ("FCs") and Finance Units ("FUs") in IFSC. The proposal seeks to align capital computation and credit risk mitigation practices with international standards, particularly the Basel framework. It recognises the Credit Risk Mitigation ("CRM") for Capital Relief. Further the protected portion of a factoring exposure is assigned the risk weight of the protection provider. The uncovered portion is assigned the risk weight of the underlying counterparty (importer).

Credit protection from institutions such as members of the FCI network and similar entities is proposed to be recognized for capital relief. The guidelines incorporate prudential requirements including exposure norms and NPA recognition, particularly in light of repeal of earlier factoring circulars. The framework applies specifically to FCs and FUs operating in IFSC, while IBUs remain governed by their home regulator norms.

DLL Analysis

The proposed guidelines represent a significant advancement in the prudential regulatory framework for trade finance and factoring activities within IFSC. By formally recognizing credit risk mitigation techniques for capital relief, the framework introduces capital efficiency and regulatory clarity for FCs and FUs. A key development is the adoption of Basel-aligned capital treatment, particularly the bifurcation of risk weights between protected and unprotected exposures, which enhances the accuracy of risk assessment and capital allocation. Additionally, the introduction of explicit prudential norms (including exposure limits and NPA recognition) strengthens risk management and supervisory oversight, especially in the absence of earlier circulars governing factoring transactions.

Source: GIFT IFSCA website [Consultation Paper dated March 11, 2026]

Amendment to the Guidelines on Cyber Security and Cyber Resilience for Regulated Entities in IFSCs

March 10, 2026: IFSCA has issued Circular IFSCA-CSD0MSC/1/2026-DCS, amending its earlier circular titled "Guidelines on Cyber Security and Cyber Resilience for Regulated Entities in IFSCs" ("Cyber Security Circular") dated March 10, 2025, with immediate effect, following representations from Regulated Entities ("REs") highlighting practical compliance difficulties.

1. Revised Exemption Framework (Substituted Para 21): The amendment expands the categories of REs exempted from the Cyber Security Circular for three (3) years from the date of original issuance, to include: (a) REs operating as a branch of a regulated Indian or foreign entity; (b) REs providing services exclusively to group entities such as GICs; and (c) REs having fewer than 10 employees. Such REs must adopt the Cyber Security framework and IS Policy of their parent/holding company, designate the parent's CISO as their Designated Officer, ensure the parent is regulated in its home jurisdiction, submit annual certification to IFSCA within 90 days of financial year-end, and submit an annual cyber security audit report.
2. Additional Exempted Categories (Newly Inserted Para 23): A new Para 23 has been inserted, creating a separate three-year exemption for: (a) foreign universities set up in the IFSC; (b) newly incorporated standalone entities with no parent organization; and (c) Credit Rating Agencies. These REs are not required to adopt a parent's framework, but their Designated Officer must certify annually that adequate cybersecurity measures proportionate to the RE's risk exposure are in place and submit such certification to IFSCA within 90 days of financial year-end.

DLL Analysis

The amendment introduces a two-track exemption structure, one for branch/group-service/small entities and another for foreign universities, standalone entities, and Credit Rating Agencies, replacing the prior single-track regime. Both tracks retain annual certification and audit obligations, ensuring accountability is maintained throughout the exemption period. REs must promptly assess which exemption track applies to them and ensure certifications are submitted within the 90-day post year-end window.

Source: GIFT IFSCA website [Circular IFSCA-CSD0MSC/1/2026-DCS dated March 10, 2026]

Report of Internal Working Group on Creation of Regulatory Ecosystem for Independent Financial Advisers (IFAs) at GIFT IFSC

February 13, 2026: IFSCA released the Report of the Internal Working Group on Creation of Regulatory Ecosystem for Independent Financial Advisers ("IFAs") at GIFT IFSC. The report proposes a comprehensive framework to formalize and regulate advisory services within the IFSC ecosystem. The report identifies a critical regulatory gap. While GIFT IFSC has a strong institutional framework, it lacks a structured regime for individual financial advisors, particularly impacting retail and NRI participation. To address this, it proposes the introduction of GIFT IFSC Financial Advisors ("GIFAs") under a Qualified Financial Entity ("QFE") anchored supervision model, ensuring dual-layer oversight. The framework aligns with international jurisdictions such as Singapore, DIFC, the UK, and Hong Kong, where individual advisors are formally regulated, while also providing cross-border flexibility by allowing advisors to operate globally while being anchored to IFSC-based regulated entities. Further, it highlights a significant market opportunity by emphasizing the potential to tap NRI and global investments, which are increasingly advisory-driven.

DLL Analysis

By formally recognising and regulating IFSCA, it is enabling holistic, cross-border advisory services that will accelerate retail and NRI participation. It will foster open architecture product distribution and position GIFT IFSC on par with leading international financial centres such as Singapore, Dubai, Hong Kong, and the UK. The proposed framework balances investor protection with ease of doing business and is expected to significantly enhance the depth and inclusivity of the IFSC retail segment.

Source: GIFT IFSCA website [Committee Report dated February 13, 2026, released on March 10, 2026]

IFSCA Concludes Open House Series for Regulated Entities on SEZ Compliance in GIFT IFSC

March 09, 2026: IFSCA concluded a series of open house sessions aimed at enhancing clarity on SEZ compliance requirements and addressing operational challenges faced by regulated entities.

DLL Analysis

This initiative reflects a proactive regulatory approach, focusing on stakeholder engagement and practical compliance facilitation, thereby improving regulatory certainty and ease of doing business.

Source: IFSCA Website [Press Release dated March 09, 2026]

Consultation Paper on Regulatory Framework for Rights Issues by Listed Entities in IFSC

March 06, 2026: IFSCA has released a consultation paper on the proposed framework for rights issues by listed entities in IFSC. The draft, based on recommendations of the Standing Committee on Primary Markets, outlines definitions, eligibility conditions, general requirements, and procedural norms aligned with global best practices and IOSCO Principles. Key highlights include:

1. Definition and Scope of Rights Issue: A rights issue is defined as an offer of specified securities by a listed entity to its existing shareholders as on the record date, thereby formalizing this mode of capital raising within IFSC.
2. Eligibility and General Conditions: The framework provides that an issuer shall not be eligible to undertake a rights issue if its equity shares are suspended from trading as a disciplinary measure. Further, issuers must obtain in principle approval from recognized stock exchanges. Additionally, ensure all partly paid shares are either fully paid-up or forfeited.
3. Record Date Requirement: Issuers are required to fix and disclose a record date to determine eligible shareholders for participation in the rights issue.
4. Disclosure Requirements: The draft letter of offer and letter of offer must contain all material disclosures under Regulation 38 of the Listing Regulations, including:
   • Details of rights, entitlements, and renunciation
   • Process of credit in demat accounts
   • Identity of specified investors
5. Pricing Mechanism: The issue price is to be determined by the board of directors prior to fixing the record date, with disclosure obligations ensuring transparency.

DLL Analysis

The consultation paper addresses the absence of detailed operational guidelines under the Listing Regulations by operationalizing Regulation 57. A key development is the emphasis on comprehensive disclosure and procedural standardization, which enhances transparency and protects shareholder interests, particularly in cross-border contexts. The inclusion of detailed provisions relating to renunciation, allotment, and dematerialized processes reflects alignment with global capital market practices. Further, the framework ensures a balance between ease of capital raising for issuers and investor protection safeguards. Overall, the framework positions IFSC as a competitive jurisdiction for equity capital raising because it is aligned with international standards while catering to the specific needs of cross-border financial markets.

Source: GIFT IFSCA website [Consultation Paper dated 6th March 2026]

Consultation Paper on the Regulatory Framework for Preferential Issues and Qualified Institutions Placements

March 06, 2026: IFSCA has invited public comments on the draft framework for preferential issues and Qualified Institutions Placements ("QIPs") by issuers listed on recognized stock exchanges in IFSC. The proposals, deliberated by the Standing Committee on Primary Markets, define key terms, eligibility criteria, and procedural requirements while aligning with IOSCO Principles 16-18. The framework is issued pursuant to Regulation 57 of the IFSCA (Listing) Regulations, 2024, which enables the Authority to prescribe norms for capital raising through such modes. The key highlights are as follows:

1. Defined Framework for Preferential Issues and QIPs: The paper provides clear definitions for "preferential issue" and "QIP" thereby formalizing these capital raising routes within IFSC.
2. Specification of Qualified Institutional Buyers ("QIBs"): The framework introduces an expanded and detailed definition of QIBs, including funds, banks, insurance companies, sovereign wealth funds, pension funds, and other regulated entities across jurisdictions.
3. Relevant Date for Pricing: The concept of "Relevant Date" is introduced for determining pricing benchmarks
   • For preferential issues: 30 days prior to shareholder approval
   • For QIPs: date of board resolution approving the issue
4. General Conditions for Issuance:
   • Shareholder approval through special resolution
   • In principle approval from recognized stock exchanges
   • All securities to be fully paid-up at the time of allotment
5. Tenure of Convertible Securities: For preferential issues the maximum tenure is of 18 months and QIPs: maximum tenure of 60 months
6. Enhanced Disclosure Requirements: Mandatory disclosures include object of issue, shareholding pattern (pre and post issue), identity of beneficial owners, and promoter participation ensuring transparency in capital raising.

DLL Analysis

By operationalizing Regulation 57 of the Listing Regulations, the Authority provides clarity on preferential allotments and institutional placements, which are key instruments for raising capital efficiently. A significant development is the formal recognition and expansion of the QIB framework, enabling broader participation from global institutional investors. The introduction of clear pricing benchmarks, tenure limits, and disclosure requirements enhances regulatory certainty and investor protection. Overall, the proposal is expected to strengthen capital formation mechanisms and deepen institutional investor participation. It will also enhance the attractiveness of IFSC as a global capital markets hub, particularly for cross-border issuances and private placements.

Source: GIFT IFSCA website [Consultation Paper dated 6th March 2026]

Consultation Paper on IFSCA (Prohibition of Market Abuse in Securities Markets) Regulations, 2026

March 06, 2026: The draft regulations seek to replace the applicability of existing SEBI regulations, namely the SEBI (Prohibition of Insider Trading) Regulations, 2015 and SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, with a unified IFSC-specific framework. The proposed regulations aim to ensure fair, efficient, and transparent markets by prohibiting practices such as insider trading, market manipulation, fraudulent trading, and misuse of information, in line with IFSCA's mandate under Sections 13 and 34 of the IFSCA Act, 2019. The key highlights are as follows:

1. Unified Market Abuse Framework: Introduction of a single, consolidated regulatory regime covering insider trading, market manipulation, and fraudulent practices, replacing the dual applicability of SEBI regulations within IFSC. The framework balances principle-based regulation (to address evolving market practices) with rule-based clarity, ensuring flexibility while maintaining legal certainty.
2. Comprehensive Coverage of Market Misconduct: The regulations define and prohibit a wide range of misconduct, including:
   • Insider dealing and unlawful disclosure of inside information
   • Market manipulation (including price rigging and false trading)
   • Dissemination of false or misleading information
   • Fraudulent and deceptive practices in securities markets
3. Alignment with Global Standards: The framework is based on IOSCO Principles and incorporates global best practices from jurisdictions such as the UK, Singapore, the EU, Hong Kong, and DIFC.
4. Enhanced Enforcement Architecture: Emphasis on strong inspection, investigation, surveillance, and enforcement powers to ensure credible deterrence, including proportionate and dissuasive sanctions.
5. Regulatory Autonomy for IFSC: Establishes a distinct IFSC-specific regime, reducing reliance on legacy SEBI frameworks and enabling a tailored approach suited to international financial markets.

DLL Analysis

The proposed regulations represent a significant regulatory transition towards a self-contained and internationally aligned market conduct regime within IFSC. By replacing the continued applicability of SEBI regulations under Section 34 of the IFSCA Act, the framework establishes regulatory autonomy specific to the IFSC ecosystem. A key advancement is the adoption of a hybrid principle-based and rule-based approach, enabling the Authority to address evolving forms of market abuse while maintaining enforceability and predictability. The incorporation of IOSCO standards and global regulatory practices strengthens IFSC's credibility as a well-regulated international financial centre. Overall, the proposed framework is expected to enhance investor confidence, ensure fair market conduct, and align IFSC securities markets with global benchmarks, thereby supporting the long-term development of a robust and transparent capital market ecosystem within GIFT IFSC.

Source: GIFT IFSCA website [Consultation Paper dated March 06, 2026]

Financial Action Task Force (FATF) - High-risk jurisdictions update

March 06, 2026: IFSCA issued an update based on FATF statements identifying high-risk jurisdictions and those under increased monitoring, advising regulated entities on due diligence requirements. The update reiterates FATF's call for applying enhanced due diligence and countermeasures for high-risk jurisdictions, while also noting changes in the "grey list," including the addition of countries such as Kuwait and Papua New Guinea. The release serves as a regulatory alert to IFSC-regulated entities to align their AML/CFT practices with FATF standards and exercise heightened vigilance in transactions involving such jurisdictions.

DLL Analysis

This update reinforces AML/CFT compliance standards within IFSC and ensures alignment with global financial integrity frameworks, safeguarding the system against financial crime risks.

Source: IFSCA Website [Press Release dated March 06, 2026]

Buying US Stocks via GIFT City: How Trading in the US Market Works Differently

March 5, 2026: NSE International Exchange (NSE IX) has launched a "Global Access" platform through GIFT City, allowing Indian residents to invest in US equities such as Apple and NVIDIA under the RBI's Liberalised Remittance Scheme (LRS). Under the Global Access Provider (GAP) framework, platforms must operate under IFSCA licences, and investor funds first move to GIFT City, where they are converted into dollars before trades are routed through NSE IX to US markets. A key distinction highlighted by the framework is the structural difference between Indian and US markets, in India, all retail orders are routed directly to exchanges such as NSE and BSE, with brokers prohibited from internally matching trades, while in the US, brokers can route orders to wholesale market makers such as Citadel Securities, which profit from the bid-ask spread through a practice known as Payment for Order Flow (PFOF). SEBI does not permit PFOF and mandates exchange-level routing to ensure transparency, a standard that will apply to trades executed through GIFT City's GAP framework.

DLL Analysis

The GAP framework's requirement for IFSCA licensing brings much-needed regulatory oversight to cross-border retail investing through GIFT City, distinguishing it from earlier unregulated wrapper-based platforms. Legal advisors should assist fintech and brokerage clients in understanding the IFSCA's licensing conditions for Global Access Providers, particularly around fund segregation, KYC norms, and order routing obligations applicable to US-market transactions.

Source: News18 (March 5, 2026)

Revision of IFSCA Fee Structure for FY 2026-27

March 02, 2026: IFSCA has issued a superseding circular revising the fee structure for entities undertaking permissible activities in IFSC, effective from FY 2026-27. Some of the major changes are provided herein:

DLL Analysis

The circular restructures the fee framework by introducing turnover-based assessment and recurring fee models, replacing earlier one-time and employee-based structures. Reduced entry costs for AIFs and FinTech Sandbox entities may support participation, while higher slabs for large banking and insurance entities enhance proportionality. Clarifications on penalties and the introduction of refund mechanisms improve enforcement certainty and administrative efficiency.

Source: GIFT IFSCA website [Circular IFSCA-DTFA/1/2026 dated March 02, 2026]

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