Now, Stockbroking At Gift-IFSC On Horizon

Stockbrokers proposing to undertake securities market related activities in GIFT-IFSC can do so under a Separate Business Unit (SBU) of the stock broking entity itself on an arm’s-length basis, Sebi said

New Delhi: Markets regulator Sebi on Friday proposed to abolish the requirement for stockbrokers to seek its approval for floating a subsidiary or joint venture (JV) to undertake securities market-related activities in Gujarat International Finance Tec-city – International Financial Services Centre (GIFT-IFSC).

Moreover, stockbrokers proposing to undertake securities market related activities in GIFT-IFSC can do so under a Separate Business Unit (SBU) of the stock broking entity itself on an arm’s-length basis, Sebi said in its consultation paper.

At present, Sebi-registered stockbrokers are required to obtain approval from it in the form of NOC to float subsidiaries or to enter into joint ventures to undertake securities market-related activities in GIFT-IFSC. Further, stockbrokers are required to maintain an arms-length relationship between their activities and that of their subsidiary/joint venture in GIFT-IFSC. Such a relationship is required to be maintained in terms of key personnel, infrastructure, segregation of books and records, independent regulatory control and supervisory mechanism, etc.

“In order to facilitate Sebi registered stockbrokers to undertake securities market related activities in GIFT-IFSC, it has been decided to do away with the requirement of obtaining specific approval from Sebi. Stockbrokers proposing to undertake securities market related activities in GIFT-IFSC may do so under a Separate Business Unit (SBU) of the stock broking entity itself,” the regulator said in its consultation paper.