Clarification on Broker Dealer Global Access and Fees issued by IFSCA

Clarifications on Broker Dealer Global Access and Fees issued by IFSCA

OVERVIEW:

• ##### The International Financial Service Centres Authority (IFSCA) has released a significant circular concerning clarification regarding global access for broker dealers and the associated fees.

• ##### Issued on June 06, 2024 this circular talks about the clarifications provided by the IFSCA to ensure that broker dealers are clean on their obligations regarding global access

• ##### These measures aim to streamline processes while maintaining regulatory oversight and financial compliance within the IFSC framework

PERMITTED METHODS:

#####

• ##### Cross Boarder Arrangement:

Broker Dealers can access exchanges outside IFSC through a regulated entity in the other jurisdiction

• ##### Trading Membership:

Broker dealers can register as a trading member of an exchange outside IFSC, provided they trade on their proprietary account and do not engage in client dealings.

#####

NO-OBJECTION REQUIREMENT:

• ##### Broker dealers must seek a 'no-objection' from recognized stock exchanges in the IFSC before availing global access.

• ##### Broker dealers doesn't need an NOC if they use India INX Global Access IFSC Limited (India INX GA).

ANNUAL FEE FOR GLOBAL ACCESS:

#####

• ##### USD 1,000 for broker dealers and subsidiaries of exchanges providing global access.

• ##### Broker dealers participating through India INX GA are not required to pay separate annual fees.

• ##### Fees to be paid pro rata from the date of NOC granted by the stock exchange

EFFECTIVE DATE AND AUTHORITY:

• ##### Effective Immediately: This circular is effective from the date of issuance.

• ##### Issued Under: Section 12 of the International Financial Services Centres Authority Act, 2019, and regulation 72 of the IFSCA (Capital Market Intermediaries) Regulations, 2021.

CONCLUSION:

• ##### By outlining the requirements for 'no-objection' certificates, the applicability of annual fees, and payment timelines, the circular ensures that broker dealers understand their regulatory and financial obligations.

• ##### These measures promote compliance and facilitate smoother operations for broker dealers within the IFSC framework, supporting a well-regulated and efficient financial ecosystem.