By Sandeep Parekh

On August 12, the International Financial Services Centres Authority (IFSCA) released a circular titled “Regulatory Framework for Global Access Providers”. The circular marks a key step towards clarifying the regulatory framework around global access providers (GAPs) and sets the tone for the next phase of investments through IFSCs.

Historically, Indian investors relied on foreign brokers operating outside the purview of domestic regulators to invest in foreign securities, thereby raising concerns over transparency and investor protection. To address this, the IFSCA introduced the concept of GAPs in 2021. GAPs are intermediaries authorised to facilitate access to global financial products and services through regulated international exchanges and foreign brokers. Initially, only IFSCA-registered broker-dealers and recognised stock exchanges could access overseas markets, either via cross-border arrangements with regulated entities or by registering as trading members of foreign exchanges (limited to proprietary trading). For broker dealers, such access required a no-objection certificate from the recognised IFSC exchange.

On April 17, the IFSCA (Capital Market Intermediaries) Regulations, 2025, were notified. They revamped the framework for the regulation, registration, and supervision of capital market intermediaries operating in IFSCs. The IFSCA consequently chose to further deliberate on how entities in IFSCs provide global access and if the status quo should be maintained.

On May 8, the IFSCA released a consultation paper seeking public comments on certain proposals in relation to GAPs (CP 1). The key objective of CP 1 was to introduce clear rules on the registration of GAPs, provide operational modalities, detail permitted products, and responsibilities of broker-dealers, to........

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