IFSCA has initiated regulatory action against the non-compliant intermediaries and issued a broader advisory to all market participants to ensure strict adherence to regulatory requirements | Photo Credit: cueapi

International Financial Services Centres Authority (IFSCA) has flagged a series of compliance lapses among capital market intermediaries in GIFT City, including offices found shut during business hours, absence of key personnel, inadequate infrastructure, and use of remote access software for trading, prompting regulatory action against several entities.

The regulator, which has been conducting a series of market intelligence visits to assess operational “substance” among registered entities, found that several intermediaries were either non-functional during business hours or lacked key managerial personnel at their registered offices. In multiple instances, neither the Principal Officer nor the Compliance Officer was present, raising concerns over governance and accountability standards, stated an official statement from IFSCA.

IFSCA also pointed out structural weaknesses, including inadequate infrastructure to support core business activities and instances where the same individual was handling both compliance and trading roles — highlighting potential conflicts of interest. The regulator further noted the use of remote access tools such as AnyDesk and UltraViewer for trading activities, practices that are inconsistent with the regulatory framework governing operations within the IFSC.

action initiated

These findings point to breaches of key provisions under the IFSCA Capital Market Intermediaries Regulations, 2025, particularly those relating to the physical presence of key management personnel and maintenance of operational infrastructure. Despite prior warnings and advisories in some cases, certain entities were found to be repeat offenders.

Following the inspections, IFSCA has initiated regulatory action against the non-compliant intermediaries and issued a broader advisory to all market participants to ensure strict adherence to regulatory requirements. The move signals a push by the regulator to reinforce credibility and strengthen governance standards as GIFT City seeks to position itself as a globally competitive financial centre.

Published on March 20, 2026