Business · India Bureau
IFSCA Sets Framework for Model Portfolios in GIFT City
India's financial regulator has proposed new guidelines requiring research entities operating in Gujarat's GIFT City to establish model portfolios with enhanced transparency standards. The framework aims to standardize disclosure practices and performance benchmarking across the financial services hub.
LSN India ·
The International Financial Services Centres Authority (IFSCA) has unveiled a comprehensive framework governing model portfolios that research entities can offer within GIFT City, India's international financial services centre located in Gujarat. The regulatory move seeks to bring greater transparency and consistency to portfolio management practices in the financial hub.
Under the proposed guidelines, research entities operating in GIFT City will be required to fully disclose portfolio risks associated with their model offerings, detailing the investment strategies employed and the rebalancing schedules they intend to follow. This disclosure requirement is designed to provide investors with clear visibility into how their capital will be managed and deployed.
The framework also mandates that research entities benchmark their portfolio performance against relevant market indices, enabling investors to assess returns in relation to established standards. This performance measurement approach is intended to foster accountability and allow for meaningful comparison across different research entities and their offerings.
The initiative reflects IFSCA's broader regulatory strategy to enhance investor protection and maintain international standards within GIFT City, positioning the financial hub as a transparent and well-regulated destination for international financial services. The framework is expected to strengthen confidence among both domestic and foreign investors participating in the centre's activities.