IFSCA Issues Master Circular for Stock Exchanges and Clearing Corporations

Master Circular no. IFSCA/CMD/MIIT/MCSECC/2026-27; Dated: 05.06.2026

The International Financial Services Centres Authority (IFSCA) has issued a Master Circular for recognised Stock Exchanges and recognised Clearing Corporations operating in International Financial Services Centres (IFSCs).

The Master Circular consolidates various regulatory instructions, guidelines and operational requirements applicable to Market Infrastructure Institutions (MIIs) functioning within IFSCs.

1. Consolidated Regulatory Framework for MIIs

The Master Circular brings together multiple circulars and guidelines into a single comprehensive document to facilitate ease of reference and compliance for recognised Stock Exchanges and Clearing Corporations.

The consolidation is intended to provide a unified regulatory framework governing the functioning of MIIs in IFSCs.

2. Key Areas Covered by the Master Circular

The Master Circular covers a wide range of regulatory and operational aspects, including:

2.1 Trading and Settlement

• Trading infrastructure and operations
• Settlement mechanisms
• Clearing and settlement procedures

2.2 Technology and Cyber Framework

• Technology governance
• System architecture and controls
• Cybersecurity and operational resilience requirements

2.3 Governance Standards

• Corporate governance norms
• Oversight mechanisms
• Responsibilities of management and governing bodies

2.4 Risk Management

• Risk management frameworks
• Margining and collateral requirements
• Market, operational and settlement risk controls

2.5 Business Continuity Planning

• Disaster recovery mechanisms
• Business continuity arrangements
• System availability and resilience standards

2.6 Reporting and Compliance

• Regulatory reporting obligations
• Disclosure requirements
• Compliance monitoring and supervisory expectations

2.7 Other Operational Requirements

• Operational procedures applicable to Stock Exchanges and Clearing Corporations
• Administrative and regulatory obligations applicable to MIIs in IFSCs

3. Applicability

The Master Circular applies to:

• Recognised Stock Exchanges in IFSCs; and
• Recognised Clearing Corporations in IFSCs

collectively referred to as Market Infrastructure Institutions (MIIs) under the IFSCA regulatory framework.

4. Earlier SEBI Circulars Superseded

The Master Circular expressly provides that it supersedes all circulars and guidelines issued by SEBI prior to 01 October 2020 relating to the subject matter covered therein.

This is in line with the transition of regulatory oversight of IFSC market intermediaries and infrastructure institutions from SEBI to IFSCA.

5. Objective of the Master Circular

The issuance of the Master Circular aims to streamline regulatory compliance and provide a single-point reference for all key operational, governance and risk management requirements applicable to Stock Exchanges and Clearing Corporations in IFSCs.

By consolidating dispersed regulatory instructions into one comprehensive framework, IFSCA seeks to enhance regulatory clarity, improve compliance efficiency and strengthen the operational resilience of Market Infrastructure Institutions operating in India’s international financial services ecosystem.

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