regulator Sebi on Friday allowed stock brokers to operate in the International Financial Services Centre (IFSC) at GIFT City, without taking its prior approval. Stock brokers proposing to undertake securities market related activities in are permitted to do so under a separate unit (SBU) of the stock broking entity itself. These activities can also be carried out if the branch qualifies as an SBU, Sebi said in its circular.
Moreover, the 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 for SBU in GIFT-IFSC would be specified under the regulatory framework issued by the regulatory authority concerned and all activities of the SBU in GIFT-IFSC would be under the jurisdiction of that regulatory authority.