Markets regulator Sebi today allowed banking entity operating in international financial services centres (IFSC) to act as stock broker or a clearing member, without forming a separate company.
The decision is taken after taking into consideration the suggestions of market participants and Reserve Bank of India.
Earlier, any recognised entity desirous of operating in IFSC as an intermediary is required to form a company to provide such financial services relating to securities market.
"An IFSC Banking Unit (IBU) set up in IFSC shall be permitted to act as a trading member of an exchange or a professional clearing member of a clearing corporation in IFSC, without forming a separate company," Securities and Exchange Board of India (Sebi) said in a circular.
The markets watchdog, in March 2015, had issued a detailed set of guidelines for establishing IFSCs as part of its efforts for setting-up financial hubs in the country. The first such centre has been set up in Gujarat's Gift City.
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