GIFT IFSC Widens Access Through Proposed Secondary Listing of Global ETFs

Overview

• Global Exchange-Traded Funds (ETFs) are set to gain easier access to Indian and non-resident Indian (NRI) investors, as the International Financial Services Centres Authority (IFSCA) seeks feedback on a new consultation paper to facilitate secondary listings of global ETFs at GIFT City.
• On 27 August 2026, IFSCA issued a Consultation Paper proposing amendments to Chapter VII of the IFSCA (Fund Management) Regulations, 2025 (FM Regulations) to enable secondary listing of ETFs on recognised stock exchanges in GIFT IFSC.
• The proposal permits a fund manager regulated in India or an eligible foreign jurisdiction to secondary list its ETF in IFSC ( through India INX or NSE IFSC exchanges) without obtaining registration as an FME solely for such secondary listing.The ETF retains its primary listing, manager, portfolio and ISIN.
• This would give investors direct access to globally renowned ETFs at one regulated USD venue, deepen liquidity on IFSC exchanges, and offer global managers into India without the cost of a full FME set-up.

Existing Regulatory Framework

• Under current IFSCA Fund Management Regulations, an ETF already listed in India (outside the IFSC) or in a recognized foreign jurisdiction can apply for a secondary listing in GIFT City.
• The process requires continued compliance with the fund’s home-country rules, with exchange applications routed directly.
• Fund managers can benefit from continuous disclosure relief by filing their English-language documents to the GIFT City exchange at the same time as they do with their primary exchange.

Key Features of the proposed framework

• Eligible ETF Manager: The ETF will be managed by a Registered FME (Retail) in IFSC or by a retail-regulated fund manager from India or a foreign jurisdiction meeting IFSCA’s fit and proper requirements.
• Eligibility of ETF: The ETF should primarily be index-replicating and should ordinarily have a minimum 12-month listing and trading track record. The seasoning requirement may be relaxed for managers with a sound track record.
• Local Representative: Where the ETF manager is not registered as an FME in IFSC, a local representative must be appointed to act as a liaison between the ETF manager, investors and IFSCA.
• Investor Protection: IFSC investors must receive at least the same level of protection as investors in the home jurisdiction. All disclosures are to be made on IFSC exchanges in English, concurrent with the home exchange, along with additional disclosures on the manager, representative, fees, tax treatment and risk factors. IFSC exchanges are to frame rules governing listing, trading conduct and market making.
• Exchange-led Listing Process: The application for secondary listing will be filed with the recognised IFSC stock exchange, which will verify eligibility and intimate IFSCA prior to admission of the ETF for listing.

Expected Benefits

• For Investors: Access to globally renowned ETFs across equities, bonds and other assets at a single trading venue in the IFSC, regulated by a unified regulator.
• For Recognised Stock Exchanges: Deeper markets through more participants and trading volumes, shifting the IFSC product mix from institution-oriented derivative and debt products to retail-relevant equity products.
• For Global Fund Managers: A calibrated route to bring their global products to the IFSC, consistent with global best practices while addressing IFSCA's supervisory concerns.
• For the IFSC Fund Ecosystem: Listings, market making and investor familiarity would in time strengthen IFSC-domiciled ETFs – positioning GIFT IFSC to host India-bound ETFs for global investors and foreign-bound ETFs for Indian and regional investors.

Conclusion

• The proposal represents another step towards positioning GIFT IFSC as a global investment and fund-distribution hub.
• The proposal refines market infrastructure rather than introducing a new product, it lowers the entry barrier for global managers while preserving investor safeguards through eligibility, representation and disclosure requirements.
• The framework seeks to balance global product access, market development and investor protection, while aligning the IFSC regime with international practices followed in jurisdictions such as Singapore and Hong Kong.