Master Circular for Broker Dealers and Clearing Members · IFSCA/CMD/MIIT/MCBDCM/2026
IFSCA circular IFSCA/CMD/MIIT/MCBDCM/2026 · 12 May 2026
IFSCA circular IFSCA/CMD/MIIT/MCBDCM/2026 · 12 May 2026
Summary
Check the official recordThe IFSCA has issued a Master Circular consolidating regulatory requirements for Broker Dealers and Clearing Members operating in the International Financial Services Centre (IFSC). This circular supersedes several previous guidelines, including those related to market access, fee structures, and operational status at disaster recovery sites. It establishes a unified framework covering registration processes via the Single Window IT System, governance standards, supervision and oversight mechanisms, technology-related provisions, and complaint handling. The circular mandates compliance with net worth requirements, periodic reporting, and specific protocols for system audits and cyber resilience. It also clarifies the regulatory framework for market access through Authorized Persons and outlines procedures for the surrender of registration and the release of security deposits.
What you must do
Key dates
Who is affected
Thresholds
Exceptions
If you do not comply
MASTER CIRCULAR IFSCA/CMD/MIIT/MCBDCM/2026
May 12, 2026
To, All Stock Exchanges in the International Financial Services Centre (IFSC); All Clearing Corporations in the IFSC; All Broker Dealers in the IFSC; All Clearing Members in the IFSC.
Madam/Sir,
Subject: Master Circular for Broker Dealers and Clearing Members
Reference may be drawn to the International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2021, and the circulars issued thereunder.
Subsequently, the International Financial Services Centres Authority (‘Authority’ / ‘IFSCA’) issued the International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2025 (‘CMI Regulations’) which repealed the International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2021, while specifying a unified framework for the regulation and supervision of Capital Market Intermediaries, which, inter-alia, includes Broker Dealers and Clearing Members.
The Authority, being satisfied that it is necessary and expedient for ease of doing business and for overall development of the IFSC ecosystem, hereby consolidates all the circulars pertaining to Broker Dealers and Clearing Members and issues this Master Circular.
(i) On and from the date of commencement of this Master Circular, the following circulars issued by the Authority shall stand superseded:
| Sr. No. | Date | Circular No. | Subject |
|---|---|---|---|
| 1 | October 14, 2020 | F. No. 68/IFSCA/MRD-AP/2020-21 | Market Access through Authorized Persons |
| 2 | April 13, 2021 | F. No. 286/IFSCA/Policy Matters (CMD-DMIIT)/2021 | Fee structure for Market Infrastructure Institutions (MIIs) and Participants |
| 3 | September 15, 2021 | F. No. 224/IFSCA/CMD-DMIIT/CUST/2021/2 | Clearing Membership for non-bank Custodians |
| 4 | April 29, 2022 | IFSCA/CMD-DMIIT/AP/2022-23/1 | Market Access through Authorized Person |
| 5 | June 28, 2022 | IFSCA/CMD-DMIIT/BD/2022-23/1 | Refund of security deposit to Broker Dealers on surrender of membership |
| 6 | May 09, 2023 | IFSCA/CMD-DMIIT/BCP-DR/2023-24/001 | Status of operations at Disaster Recovery (DR) Site of the Broker Dealers and Clearing Members registered with IFSCA |
| 7 | March 14, 2024 | IFSCA/CMD-DMIIT/SOF/2023-24/001 | Ease of doing business: Settlement of Client’s Funds lying with Broker Dealer |
(ii) On and from the date of commencement of this Master Circular, all circulars and guidelines issued by the Securities and Exchange Board of India (“SEBI”) prior to October 01, 2020, in respect of a Broker Dealer/Clearing Member registered with the Authority, shall stand superseded.
(iii) This Master Circular shall be applicable to Broker Dealers for their activities on the recognised stock exchanges in the IFSC and is not applicable for the activities related to global access by the Broker Dealers. Global access by the Broker Dealers shall be governed through the separate circulars/regulatory framework issued by the Authority for global access by Broker Dealers.
(iv) Notwithstanding the supersession specified in (i) and (ii) above, a) anything done or any action taken or purported to have been done or taken under the superseded circulars, prior to such supersession, shall be deemed to have been done or taken under the corresponding provisions of this Master Circular; and b) any application made to the Authority under any of the superseded circular(s) prior to such supersession shall be deemed to have been made under the corresponding provisions of this Master Circular;
A copy of this circular is available on the website of the International Financial Services Centres Authority at www.ifsca.gov.in.
Yours faithfully
Praveen Kamat General Manager Division of Market Infrastructure Institutions & Technology Capital Markets Department Email: praveen.kamat@ifsca.gov.in Tel: +91-079-61809820
1. Application for Registration
1.1. The International Financial Services Centres Authority (IFSCA/the Authority) has operationalised a Single Window IT System (SWIT System/ SWITS), which, inter-alia, contains a Common Application Form (CAF), created by merging several existing forms including business-specific Annexure Forms. The link for accessing the SWITS platform is https://swit.ifsca.gov.in.
1.2. The SWIT System aims to harmonise and simplify the process of submission of application under the Acts specified under the First Schedule of the IFSCA Act, 2019, including any regulations or framework issued thereunder, in addition to the Special Economic Zones (SEZ) Act, 2005. The Application Form (Form-FA) for seeking Letter of Approval (LoA) from the Administrator (IFSCA) under the SEZ Act, 2005 is also the part of the SWITS and is integrated with the SEZ Online System.
1.3. In addition, the SWIT System also provides the facility for an entity to apply for Goods and Services Tax Identification Number (GSTIN), thereby simplifying the tax registration for businesses. Further, the SWIT System also enables the online payment of fees in USD for entities desirous of setting up operations in IFSC.
1.4. An entity desirous of seeking registration as a Broker Dealer/Clearing Member with the Authority shall submit/file its applications exclusively through the SWIT System for seeking: 1.4.1. Registration as Broker Dealer/Clearing Member under the provisions of the CMI Regulations; 1.4.2. Approval from SEZ Authorities and GST registration; and 1.4.3. NoC/requisite approval from appropriate regulators (if any).
1.5. In this regard, for more details, Circular No. IFSCA-ITIn0WEB/1/2023-IT Infrastructure and Fintech- Part (1), titled “Single Window IT System inter-alia for registration and approval from IFSCA, SEZ authorities, GSTN, RBI, SEBI and IRDAI”, dated September 30, 2024, issued by the Authority, may be referred to.