GIFT IFSC Gets a New Market Abuse Rulebook: What Businesses Need to Know

Overview: The International Financial Services Centres Authority (IFSCA) has introduced a consolidated framework to prohibit market abuse in the securities markets of GIFT IFSC. The IFSCA (Prohibition of Market Abuse in Securities Markets) Regulations, 2026 bring insider trading, fraudulent and manipulative practices, unfair trading and misleading information within a single regulatory framework.

The new rules also strengthen requirements around material non-public information, internal controls, disclosures and market conduct, giving regulated entities a clearer compliance framework for maintaining fair and orderly securities markets.

The International Financial Services Centres Authority (IFSCA) has notified the IFSCA (Prohibition of Market Abuse in Securities Markets) Regulations, 2026, creating a unified regulatory framework for addressing market abuse in the securities market in the International Financial Services Centre (IFSC).

The new framework brings together provisions dealing with insider trading, fraudulent and manipulative practices, unfair trading and dissemination of false or misleading information. It is intended to protect investors and support the integrity and orderly functioning of the securities market in GIFT IFSC.

The regulations also replace the earlier SEBI market-abuse framework applicable to the IFSC, including the SEBI (Prohibition of Insider Trading) Regulations, 2015 and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003.

IFSCA has listed the regulations on its website on the 7th September, 2026, while the Authority issued its press release on the notification a day later.

New IFSCA Market Abuse Framework

The regulations address a broad range of conduct that can distort market prices, create artificial demand or supply, or give an unfair advantage to market participants.

The framework covers practices including:

• Insider trading and dealing while in possession of material non-public information;
• Fraudulent and manipulative transactions;
• Artificially influencing supply, demand or prices;
• Circular trading and other manipulative trading patterns;
• Spoofing and similar order-based practices;
• Dissemination of false or misleading information; and
• Unauthorised transactions carried out on behalf of clients.

The regulations also address repeated placement and cancellation of orders where the conduct is intended to artificially influence the supply, demand or price of securities. This is particularly relevant for electronic securities markets, where trading behaviour and order patterns can have a direct impact on market integrity.

The framework further recognises that misleading information can be disseminated through both physical and digital channels, bringing communication-related market abuse within its scope.

Stricter Controls Around Material Non-Public Information

A key component of the new framework is its treatment of material non-public information (MNPI).

Persons who possess such information are restricted from trading in the concerned securities while in possession of MNPI. The regulations also restrict the communication or procurement of material non-public information, except in circumstances permitted for legitimate purposes, performance of duties or discharge of legal obligations.

An insider cannot use MNPI to trade in the concerned securities or cause another person to trade on the basis of that information.

For businesses and regulated entities, this makes proper handling of unpublished price-sensitive or otherwise material information particularly important. Access controls, information-sharing protocols and employee trading policies should therefore be reviewed in light of the new framework.

Disclosure and Internal Compliance Requirements

The new framework also places importance on preventive compliance mechanisms.

Listed entities are required to maintain appropriate internal controls and a code of conduct to support compliance with the market-abuse regulations. These controls are particularly relevant to the identification and handling of material non-public information and the persons who have access to it.

The regulations also prescribe disclosure requirements for designated persons in specified circumstances, including where the value of securities transactions crosses the prescribed US$ 25,000 threshold in a calendar quarter. The relevant disclosure is required within the prescribed timeline, including a two-trading-day reporting requirement.

These provisions mean that compliance teams cannot look at market abuse solely as a trading-floor issue. Information management, employee dealing, reporting systems, surveillance and internal controls all form part of the compliance framework.

Why Is This Important for GIFT IFSC?

GIFT IFSC is being developed as India’s international financial services hub, with exchanges, financial institutions, fund managers and other regulated entities operating within its framework.

As the securities market in GIFT IFSC expands, a clear and consolidated market-abuse regime becomes increasingly important. The new regulations provide market participants with a single framework covering conduct that was previously addressed through separate SEBI regulations applicable to the IFSC.

The move should also provide greater clarity for regulated entities when designing their internal compliance, surveillance and information-management systems.

For businesses operating in or entering GIFT IFSC, understanding the regulatory environment is therefore becoming as important as understanding the commercial opportunities available within the international financial centre.

What Should Businesses and Market Participants Do?

Entities operating in GIFT IFSC should review their existing market surveillance, trading controls, information-sharing policies and compliance procedures against the new regulations.

Particular attention should be given to:

• Handling and restricting access to material non-public information;
• Employee and designated-person trading policies;
• Internal controls and codes of conduct;
• Reporting and disclosure procedures;
• Monitoring unusual trading and order activity;
• Controls against unauthorised client transactions; and
• Policies governing the dissemination of market-related information.

Businesses establishing operations in a regulated financial centre should also ensure that their corporate records, regulatory documentation and ongoing statutory compliances are properly maintained.

A well-organised compliance framework can help businesses identify regulatory obligations early, maintain the required documentation and reduce the risk of compliance gaps as their operations expand.

Conclusion

The IFSCA (Prohibition of Market Abuse in Securities Markets) Regulations, 2026 mark an important development in the regulatory framework governing securities markets in GIFT IFSC.

By bringing insider trading, fraudulent and manipulative practices, unfair trading and misleading information under a unified framework, IFSCA has created a more consolidated approach to preventing market abuse and protecting the integrity of the securities market.

For regulated entities and other market participants, the change is not limited to trading activity. It also has implications for information handling, employee trading, disclosures, internal controls, surveillance and day-to-day compliance processes.

Businesses operating in GIFT IFSC should therefore review their existing policies and compliance systems and align them with the requirements of the new framework.

SetIndiaBiz Support

SetIndiaBiz supports businesses with GIFT IFSC incorporation, corporate documentation and ongoing compliance, helping them identify applicable requirements, maintain statutory records and manage recurring obligations.

As the IFSCA regulatory framework evolves, our support helps businesses maintain a structured compliance process and stay organised with their corporate and regulatory requirements—so they can focus on operating and growing in GIFT IFSC.