SEBI/HO/MIRSD/MIRSD -PoD/P/CIR/2025/61
guidelines · 1992 · State unknown
Parent: THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 (7c4c1f5343adab106c3a94cafc08a5ecf5957ae7)
Text
CIRCULAR SEBI/HO/MIRSD/MIRSD -PoD/P/CIR/2025/61 To, All recognized Stock Exchanges Stock Brokers through Recognized Stock Exchanges Dear Madam / Sir, Sub: Measure for Ease of Doing Business – Facilitation to SEBI registered Stock Brokers to undertake securities market related activities in Gujarat International Finance Tech -city – International Financial Services Centre (GIFT-IFSC) under a Separate Business Unit (SBU) In order to facilitate SEBI registered stock brokers to undertake securities market related activities in Gujarat International Finance Tech-city – International Financial Services Centre (GIFT-IFSC), it has been decided to do away with the requirement of obtaining specific approval from SEBI. Stock brokers proposing to undertake securities market related activities in GIFTIFSC are permitted to do so under a Separate Business Unit (SBU) of the stock broking entity itself. These activities can also be carried out if the branch qualifies as an SBU. Existing practice of carrying out securities market related activities in GIFT-IFSC through a subsidiary is also allowed. Thus, the form in which these activities are to be carried out is at the discretion of the entity. The matters related to policy, eligibility criteria, risk management, investor grievances, inspection, enforcement, claims etc. for SBU in GIFT-IFSC would be specified under the regulatory framework issued by the concerned regulatory authority and all activities of the SBU in GIFT-IFSC would be under the jurisdiction of that regulatory authority . In pursuance of the above regulatory jurisdiction, to demarcate the regulatory obligations and to ring fence the activities of the stock brokers in Indian securities market and that of SBU in GIFT -IFSC, some of the key safeguards are being prescribed aRule TOC
5 · 1 Stock brokers shall ensure that securities market related activities of the SBU in GIFT -IFSC are segregated and ring-fenced from the Indian securities market related activities of the stock broker and arms -length relationship between these activities is maintained.
5 · 2 Such SBU in GIFT -IFSC shall be exclusively engaged in providing securities market related activities as permitted by the IFSCA . Further that, the activities to be carried out by the SBU shall be as permitted by the IFSCA.
5 · 3 Stock brokers shall prepare and maintain a separate account for the SBU on arms -length basis.
5 · 4 The net worth of the SBU shall be kept segregated from the net worth of the stock broker in the Indian securities market. Net worth criteria for stock broker shall be satisfied after excluding account of the SBU. The net worth for the purpose of the SBU shall be as per regulatory framework issued by the concerned regulatory authority.
