Blurb: IFSCA has consolidated market-abuse rules at GIFT City, targeting insider trading, manipulation and misleading information under one framework.
New Delhi
The International Financial Services Centres Authority (IFSCA) has notified a new regulatory framework to curb market abuse in the securities markets at GIFT City, bringing insider trading, fraudulent and manipulative practices and unfair trading under a single set of regulations.
The IFSCA (Prohibition of Market Abuse in Securities Markets) Regulations, 2026, seek to strengthen investor protection and establish a comprehensive framework for preventing market-abuse activities in the International Financial Services Centre (IFSC).
The new regulations effectively replace the Securities and Exchange Board of India’s existing rules on insider trading and fraudulent and unfair trade practices for the IFSC. Once they come into force, Sebi’s Prohibition of Insider Trading Regulations, 2015, and Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market Regulations, 2003, will no longer apply in the IFSC.
Under the framework, IFSCA can take action against violations under the governing Act. Penalties may include warnings or censure, along with suspension or cancellation of registrations of regulated entities or persons.
The regulations prohibit fraudulent transactions, securities-price and benchmark manipulation, artificial demand, circular trading and the dissemination of false or misleading information.
They also specifically target repeated placement and cancellation of orders without an intention to execute them when such activity is designed to influence securities’ supply, demand or prices.
The framework further prohibits unauthorised transactions on behalf of clients, artificial trading activity and planting false or misleading news through physical or digital media when it could induce investors to trade.