Regulation 4 - Obligation to seek Registration and Exemptions therefrom - International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2025

CHAPTER II REGISTRATION OF CAPITAL MARKET INTERMEDIARIES 4. Obligation to seek Registration and Exemptions therefrom (1) A unit in IFSC desirous of undertaking any of the below mentioned activities shall obtain a certificate of registration from the Authority: (a) Broker dealer; (b) Clearing member; (c) Credit rating agency; (d) Custodian; (e) Debenture Trustee; (f) Depository participant; (g) Distributor; (h) ESG Ratings and Data Products Provider; (i) Investment adviser; (j) Investment banker; and (k) Research Entity. (2) A Banking Unit may act as a banker to an issue in an IFSC subject to compliance with the regulatory provisions specified by the Authority under these regulations. (3) A Banking Unit may act as an investment banker subject to authorisation in accordance with the requirements specified by the Authority under these regulations. (4) Notwithstanding anything contrary contained in these regulations, the following is exempted from seeking separate registration under these regulations as a - (a) Research Entity , if an investment adviser or credit rating agency or Fund Management Entity registered with the Authority which issues, circulates or distributes a research report to public. (5) The following persons are exempted from the requirement of seeking registration under these regulations - (a) as an investment adviser , if- (i) a person who gives general comments in good faith in regard to trends in the financial or securities market or the economic situation where such comments do not specify any particular securities or investment product; (ii) an insurance agent or an insurance broker registered with the Authority, who offers investment advice solely in insurance products; (iii) a distributor of funds providing any investment advice to its clients incidental to its primary activity; (iv) a member of the Institute of Chartered Accountants of India, the Institute of Company Secretaries of India, the Institute of Cost Accountants of India, the Institute of Actuaries of India or any other professional body as may be specified by the Authority, who provides investment advice, either independently or as an employee of an entity, to his clients, incidental to his professional service; (v) a broker dealer or an investment banker who offers investment advice to its clients, incidental to its primary activity; (vi) a fund manager, by whatever name called, providing advice to a mutual fund, retail fund, alternative investment fund or any other fund registered or regulated by the Authority or any other securities market regulator; (vii) any person providing investment advice to investors such as: a. central and state governments; b. developmental agencies set up under the aegis of government(s); c. multilateral agencies; d. sovereign wealth funds; e. intermediaries registered with the Authority; f. banking companies; g. insurance companies; h. pension funds; i. provident funds; j. public financial institutions; and k. any other category of investors, as may be specified by the Authority from time to time. (viii) any person who provides investment advice exclusively to its associates or group entities; and (ix) any other person as may be specified by the Authority; (b) a credit rating agency, arranger, distributor, debenture trustee, ESG rating agency, ESG data products providers or registrars to an issue or share transfer agents or such other intermediaries as may be specified by the Authority located outside IFSC and providing services to an entity in an IFSC or an issuer whose securities are listed or proposed to be listed on a recognised stock exchange: Explanation: For the avoidance of doubt, it is hereby clarified that the requirement of obtaining registration under these regulations shall be applicable, in case an entity located outside IFSC sets up a unit in an IFSC for providing aforementioned services . (6) In addition to sub-regulations (1) to (3), the Authority may specify norms for obtaining authorisation or registration as CMI.