IFSCA unveils comprehensive market abuse rulebook for Gift City securities

The International Financial Services Centres Authority (IFSCA) has introduced a comprehensive market abuse regulation framework designed to strengthen investor protections and market integrity in Gift City's securities operations. The new rules establish clear prohibitions and enforcement mechanisms across multiple categories of misconduct affecting the IFSC's financial markets.

The framework addresses four principal areas of market abuse: insider trading, fraudulent and manipulative trading practices, dissemination of false information, and artificial trading activities. By consolidating these provisions under a unified regulatory regime, IFSCA aims to create a more robust oversight structure than the previously fragmented approach that relied on Securities and Exchange Board of India (SEBI) protocols adapted for the international financial centre.

The notification represents a significant step in establishing Gift City as a globally competitive financial hub with regulatory standards aligned with international best practices. The framework provides clear definitions of prohibited conduct and establishes enforcement procedures, enabling market participants to understand compliance obligations while giving regulators effective tools to detect and penalise violations.

The new rules supersede SEBI's existing market-abuse regimes as applied within the IFSC, creating a streamlined regulatory environment specific to Gift City's unique status as an international financial centre. Stakeholders including securities firms, exchanges, and investors will need to adjust operations to comply with the revised requirements.