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Date: 2025-12-30 Category: Not Applicable State: Union Government Country: India

Computation of liquid net worth under IFSCA (Capital Market Intermediaries) Regulations, 2025 - Clarifications

Issued by International Financial Services Centres Authority · Not Applicable

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Executive Summary & Key Takeaways

This IFSCA circular, dated December 30, 2025, with reference number F. No. IFSCA-PLNP/80/2024-Capital Markets, addresses clarifications regarding the computation of liquid net worth under the IFSCA (Capital Market Intermediaries) Regulations, 2025 for all Capital Market Intermediaries in the IFSC. It clarifies that base minimum capital and interest-free deposits maintained by registered broker dealers and clearing members, as well as margins maintained by them, shall be considered part of liquid net worth. When computing "net worth," liabilities are excluded as per the CMI Regulations. The circular comes into effect immediately and is issued under Sections 12 and 13 of the International Financial Services Centres Authority Act, 2019, read with regulation 45 of the CMI Regulations. The circular is available on the IFSCA website at www.ifsca.gov.in. For further information, contact Arjun Prasad, General Manager, Division of CMI - Policy & Registration at arjun.pd@ifsca.gov.in or +91-079-61809815.

Key Entities Referenced

IFSCA (Capital Market Intermediaries) Regulations, 2025: Regulations governing Capital Market Intermediaries under IFSCA, the subject of clarifications in the circular. International Financial Services Centres Authority Act, 2019: The Act that confers powers to IFSCA, which the circular cites as its legal basis. International Financial Services Centres Authority: The regulator issuing the circular, responsible for capital market intermediaries in IFSC. IFSCA: Location where the regulations are applicable and where intermediaries operate.
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Circular F. No. IFSCA-PLNP/80/2024-Capital Markets December 30, 2025 To All Capital Market Intermediaries in the IFSC Dear Sir/ Madam, Sub: Computation of liquid net worth under IFSCA (Capital Market Intermediaries) Regulations, 2025 - Clarifications 1. Reference may be drawn to the IFSCA (Capital Market Intermediaries) Regulations, 2025 (“CMI Regulations”) and the IFSCA circular titled “IFSCA (CMI) Regulations, 2025 - Extension of deadline for compliance with revised net worth requirements” issued on September 12, 2025. 2. In this regard, the following is hereby clarified: a) Base minimum capital and interest free deposits maintained by the registered broker dealers and the registered clearing members with the recognised stock exchanges and clearing corporations respectively shall be considered as part of liquid net worth; b) Margins maintained by the registered broker dealers / clearing members in relation to their trading activities in the IFSC or Global Access, as the case may be, shall be considered as part of liquid net worth; and c) While computing “net worth” of an entity, liabilities are not considered as per definition of “net worth” provided in the CMI Regulations and accordingly any liability shall be excluded for the purpose of computation of “liquid” net worth. 3. The circular shall come into force with immediate effect. 4. This circular is issued in exercise of powers conferred by Sections 12 and 13 of the International Financial Services Centres Authority Act, 2019 read with regulation 45 of the CMI Regulations. 5. A copy of this circular is available on the website of the International Financial Services Centres Authority at www.ifsca.gov.in. Yours faithfully, Arjun Prasad General Manager Division of CMI - Policy & Registration arjun.pd@ifsca.gov.in +91-079-61809815

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