IFSCA Seeks Comments on Draft Financial Advisers Regulations 2026

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IFSCA Financial Advisers Regulations

Circular eF.No. IFSCA-TAS/3/2025-FSSRD, Dated: 24.02.2026

The International Financial Services Centres Authority (IFSCA) has released a consultation paper inviting comments from market participants, stakeholders and the public on the draft IFSCA (Financial Advisers) Regulations, 2026.

The draft regulations propose to establish a comprehensive regulatory framework for financial advisory services within the International Financial Services Centre (IFSC).

1. Objective of the Proposed Regulatory Framework

The proposed regulations aim to provide a structured framework for financial institutions operating in IFSC to engage IFSC Financial Advisers for rendering or soliciting financial services.

The framework seeks to:

  • Strengthen investor protection beginning from the advisory stage
  • Ensure greater transparency and accountability in advisory activities
  • Align the IFSC ecosystem with global regulatory and fiduciary standards
  • Facilitate responsible growth of advisory-led financial services

2. End-to-End Advisory Oversight

The draft regulations propose a structured advisory model that enables comprehensive regulatory oversight across the entire client journey, including:

  • Initial client engagement and onboarding
  • Risk profiling and suitability assessment
  • Product recommendation and advisory support
  • Execution through regulated intermediaries

This end-to-end oversight is intended to enhance investor protection, ensure suitability of financial products, and reinforce market integrity within IFSC.

3. Focus on Retail and Diaspora Investors

The consultation paper highlights the significant opportunity presented by the Indian diaspora and retail investor segment:

  • The global Indian diaspora comprises approximately 35.4 million overseas Indians
  • Overseas Indians remitted around USD 135.46 billion to India during 2024–25
  • Investments by diaspora investors into GIFT IFSC-based funds have exceeded ₹60,998 crore (approx. USD 7 billion)

Retail and Non-Resident Indian (NRI) investors typically require enhanced engagement, financial education, and personalised advisory support. Access to regulated IFSC advisers capable of delivering transparent, fiduciary-oriented, and multi-product advice can significantly improve investor confidence and participation.

4. Enabling Scalable and Accountable Advisory Networks

The proposed framework is intended to enable regulated IFSC institutions to expand retail and diaspora outreach through structured advisory networks while maintaining:

  • Institutional accountability
  • Clearly defined activity boundaries
  • Robust supervisory and compliance safeguards

This balanced approach aims to support growth in advisory-led financial services without compromising regulatory discipline or investor protection.

5. Invitation for Public Comments

IFSCA has invited comments and suggestions from stakeholders, market participants, and the public on the draft regulations. Feedback received during the consultation process will help refine the proposed framework and support the development of a globally aligned and investor-focused advisory ecosystem within IFSC.

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