IFSCA Clarifies Liquid Net Worth Computation

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  • Last Updated on 2 January, 2026

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IFSCA Liquid Net Worth Computation

Circular F. No. IFSCA-PLNP/80/2024-Capital Markets, Dated 30.12.2025

1. Introduction

The International Financial Services Centres Authority (IFSCA) has issued clarifications on the computation of liquid net worth under the IFSCA (Capital Market Intermediaries) Regulations, 2025. The clarification aims to remove ambiguity and ensure uniform application of net worth norms by regulated entities operating in IFSCs.

2. Scope Of The Clarification

The circular specifically addresses the components that may be considered while calculating liquid net worth. These clarifications apply to entities registered as capital market intermediaries under the IFSCA regulatory framework and are intended to streamline compliance and reporting practices.

3. Inclusion Of Capital And Deposits

IFSCA has clarified that base minimum capital, interest-free deposits, and margins maintained by registered broker dealers and clearing members shall be included as part of liquid net worth. This inclusion provides clarity on the treatment of such funds for regulatory capital adequacy purposes.

4. Treatment Of Liabilities

The circular further clarifies that liabilities are to be excluded while computing liquid net worth. This ensures that only eligible liquid assets and qualifying capital components are considered for determining regulatory compliance under the Regulations.

5. Conclusion

The clarifications issued by IFSCA come into force with immediate effect. Capital market intermediaries operating in IFSCs should review their net worth computation methodologies and align them with the clarified provisions to ensure ongoing regulatory compliance.

Click Here To Read The Full Circular 

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied