Maintenance of Net Worth by Capital Market Intermediaries

CIRCULAR F. No.: IFSCA-DSI/4/2024-Capital Markets

          September 05, 2024 

To, All Capital Market Intermediaries in the International Financial Services Centre (IFSC) (including Registered Distributors)

Dear Sir/Madam, Sub: Maintenance of Net Worth by Capital Market Intermediaries

1. Reference is drawn to Chapter II Regulation 6 of IFSCA (Capital Market Intermediaries) Regulation, 2021, which mandates Capital Market Intermediaries (CMIs) to maintain Net Worth at all times.

2. In this regard, it is clarified that CMIs failing to maintain Net Worth at any time shall not undertake any existing or new business activity in IFSC till the time the net worth is restored.

3. This issues without prejudice to IFSCA’s power to take action for non-compliance with the aforesaid regulation.

4. This circular is issued in exercise of the powers conferred under sections 12 and 13 of the International Financial Services Centres Authority Act, 2019, read with regulation 72 of IFSCA (Capital Market Intermediaries) Regulation, 2021, and shall come into force with immediate effect.

A copy of this circular is available on the website of International Financial Services Centres Authority at www.ifsca.gov.in Yours faithfully,

Sd/-

Amit Prajapati Deputy General Manager Division of Supervision of Intermediaries Email: prajapati.amit@ifsca.gov.in Tel: +91-079-6180988