Sebi to Ease Entry for Stock Brokers in GIFT-IFSC

Sebi proposes removing the requirement for stock brokers to seek approval for subsidiaries or joint ventures in GIFT-IFSC. Brokers can conduct activities under a Separate Business Unit, maintaining segregation from their Indian operations. Public comments are invited on this proposal until April 11.

The Securities and Exchange Board of India (Sebi) has introduced a proposal to eliminate the current necessity for stock brokers to seek approval when creating subsidiaries or joint ventures geared towards securities market activities in Gujarat's International Finance Tec-City (GIFT-IFSC).

Under the new proposal, stock brokers can instead operate through a Separate Business Unit (SBU) within the broking entity itself, maintaining an arm's-length basis. This initiative is designed to streamline operations and reduce procedural barriers, encouraging more direct engagement in GIFT-IFSC's financial markets.

The proposal outlines the need for these SBUs to remain distinct from the brokers' existing Indian market activities. Sebi has called for public feedback on these changes, with the consultation period ending on April 11.

(With inputs from agencies.)