On October 01, 2025, the International Financial Services Centres Authority (“IFSCA”) issued a consultation paper seeking public comments on the proposed master circular governing stock exchanges and clearing corporations operating within International Financial Services Centres (IFSCs) (“Draft Master Circular”).[1] This initiative follows the framework established under the IFSCA (Market Infrastructure Institutions) Regulations, 2021, as amended by the IFSCA (Market Infrastructure Institutions) (Amendment) Regulation, 2024 (“MII Regulations”).
Under Regulation 72 of the MII Regulations, IFSCA is empowered to issue circulars specifying norms, procedures, and guidelines for Market Infrastructure Institutions (“MIIs”). Further, Regulation 73(5) of the MII Regulations provides that the circulars and guidelines issued by SEBI and applicable to MIIs in IFSC shall remain in force unless superseded by IFSCA regulations, circulars, or guidelines.
The Draft Master Circular is intended to: (i) consolidate and streamline all existing circulars and guidelines issued by SEBI (prior to October 01, 2020) and IFSCA relating to Stock Exchanges and Clearing Corporations in IFSCs; (ii) provide a unified, updated regulatory framework for MIIs operating in IFSCs; and (iii) enhance regulatory clarity, reduce fragmentation, and ensure consistency in supervision and compliance.
Upon finalization, the Master Circular shall supersede all previous circulars and guidelines issued by SEBI and IFSCA on the subject. However, any actions taken or purported to have been taken under the superseded circulars will be deemed to have been taken under the corresponding provisions of the newly issued master circular and all applications submitted under previous circulars and pending before IFSCA shall be deemed as submitted under the new master circular.
IFSCA has invited comments and feedback from the public and stakeholders on the Draft Master Circular latest by October 22, 2025. Stakeholders are encouraged to review the proposed changes and submit their inputs within the prescribed timeline.
[1]https://ifsca.gov.in/CommonDirect/GetFileView?id=2a38901cd710ed10d1660d1c300f08fe&fileName=Consultation_Paper_on_Master_Circulars_for_Stock_Exchanges_and_Clearing_Corporations_in_the_IFSC_20251001_0816.pdf