Regulation 9 - Appointment of Principal Officer, Compliance Officer and other human resources - International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2025

9. Appointment of Principal Officer, Compliance Officer and other human resources (1) A capital market intermediary shall designate a principal officer and a separate compliance officer based out of IFSC. (2) A capital market intermediary shall ensure that the principal officer and the compliance officer meet the following educational qualification requirements: (a) A professional qualification or post-graduate degree or post graduate diploma (minimum one year in duration) in finance, law, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or an institution recognised by the Central Government or any State Government or a recognised foreign university or institution or association or a CFA or a FRM from Global Association of Risk Professionals or any other relevant educational qualifications as may be specified by the Authority: Provided that a graduation degree in any field from a university or an institution recognised by the Central Government or any State Government or a foreign university would suffice where the principal officer or the compliance officer has a work experience of at least ten years in the financial services market: Provided further that a person who has a qualification of Bachelor of Law from a university, or an institution recognised by the Central Government or any State Government or a recognised foreign university or institution or association is also eligible for appointment as a compliance officer: Provided further that, in respect of a principal officer of a distributor or an investment adviser or a research entity, a graduate degree in any field from a university or an institution recognised by the Central Government or any State Government or a foreign university along with a certification as a Certified Financial Planner from Financial Planning Standards Board shall also suffice. Explanation. - For the purposes of these regulations, the professional qualification shall include membership of Institute of Chartered Accountants of India, Institute of Company Secretaries of India, Institute of Cost Accountants of India or any institution equivalent thereto in a Foreign Jurisdiction. (3) A capital market intermediary shall ensure that the principal officer and compliance officer meet the following experience requirements: (a) A principal officer shall have an experience of at least three years in the financial services market: Provided that a person having a work experience of at least one year in ESG related activities may also be eligible for appointment as principal officer of an ERDPP. (b) A compliance officer shall have an experience of at least two years in the financial services market: Provided that the work experience in any other field shall be considered if the person has work experience of minimum two years in compliance related role or function in a company. (4) The requirement of qualification and experience as mentioned in the sub-regulations (2) and (3) shall apply to all the appointments by a CMI after these regulations coming into force: Provided that all the capital market intermediaries already registered with the Authority under these regulations as on the date of these regulations coming into force shall ensure that their principal officer and compliance officer meet the above requirements on or before October 01, 2025 or any other date as may be specified by the Authority. (5) A CMI shall ensure that its employees shall undergo such certification courses from such institutions, as may be specified by the Authority. (6) A CMI shall have adequate manpower commensurate with its business activities in an IFSC. (7) The principal officer shall be responsible for the overall operations undertaken by the CMI and shall also ensure that other employees of the CMI comply with the obligations under these regulations. (8) Where an entity has multiple registrations under these regulations, the principal officer shall be appointed/ designated for each such registration separately: Provided that an entity with registration as broker dealer, clearing member and depository participant may have the same person as principal officer for these activities: Provided further that an entity with registration as credit rating agency and ERDPP may have the same person as principal officer for these activities. (9) Where an entity has multiple registrations under these regulations, the entity may have the same person as compliance officer for ensuring compliances with all the applicable regulatory and legal requirements for its activities as capital market intermediary in the IFSC. Provided further that the Authority may review sub-regulations (8) and (9) based on the size, scale and complexity of business activities of the intermediaries and may specify revised norms in this regard.