This initiative aims to enhance the global investment opportunities available through India’s international financial services centre
The International Financial Services Centres Authority (IFSCA) has proposed allowing registered distributors in GIFT City to offer capital market products, including investment funds, domiciled in the European Union (excluding Croatia), the UAE, Singapore and Australia to retail investors, significantly expanding the range of global investment products available through India’s international financial services centre.The proposal, issued through a consultation paper, seeks to expand the list of overseas jurisdictions from where capital market products and services can be distributed by IFSCA-registered distributors to all categories of investors. If implemented, the move would also open the door for distributors in GIFT City to offer products domiciled in major global fund hubs such as Luxembourg and Ireland, both of which fall within the European Union and are among the world’s largest fund jurisdictions.Currently, registered distributors are permitted to distribute capital market products offered by regulated financial entities based in India, GIFT IFSC, the US, the UK, France, Germany, Japan, South Korea and Canada to retail and other investors. Products originating from all other foreign jurisdictions can presently be distributed only to sophisticated or accredited investors.Retail distributionThe proposal follows representations from market participants, who pointed out that while UCITS (Undertakings for Collective Investment in Transferable Securities) funds domiciled in countries such as France and Germany are already eligible for retail distribution, similar UCITS funds established in Luxembourg and Ireland remain outside the existing framework despite the two jurisdictions being among the world’s largest fund domiciles.“It has been represented that allowing distribution of products domiciled in these jurisdictions will enhance the competitiveness of GIFT IFSC relative to other international financial centres and deepen the breadth of global investment opportunities accessible from India,” IFSCA stated in the consultation paper.The regulator also said it had received representations seeking the inclusion of other jurisdictions, including the Cayman Islands and Cyprus. However, it has, at this stage, proposed expanding the list only to the European Union (excluding Croatia), the UAE, Singapore and Australia. To support the proposal, IFSCA cited data from the International Organization of Securities Commissions’ (IOSCO) 2025 Investment Funds Statistics Report, which highlights the dominance of Luxembourg and Ireland in the global investment funds industry. According to the report, Luxembourg is the world’s second-largest jurisdiction for open-ended investment funds, with assets under management of about $5.17 trillion, and the largest jurisdiction for closed-ended funds. Ireland ranks fourth globally for open-ended funds, with assets of around $3.82 trillion, and also features among the top 10 jurisdictions for closed-ended funds.Fund jurisdictionsThe regulator noted that several globally-significant fund jurisdictions are currently not covered under the existing framework for distribution of capital market products to investors other than sophisticated investors.IFSCA said registered distributors act as a bridge connecting issuers and service providers — primarily investment funds — with investors across jurisdictions. It added that the distribution of capital market products would continue to remain subject to the applicable legal and regulatory framework of both the jurisdiction where the product originates and the jurisdiction where the investor is located.The proposed expansion also aligns the distribution framework with IFSCA’s existing Video Customer Identification Process (V-CIP) regime. Under the framework, non-resident Indians residing in the UAE, Singapore, Australia and the European Union (excluding Croatia) are already permitted to be onboarded through video-based customer identification.According to the regulator, the proposal is aimed at enhancing business opportunities for registered distributors operating from GIFT IFSC while encouraging cross-border investments in a regulated and transparent manner. It said expanding the list of eligible jurisdictions would deepen the range of global investment products that can be accessed through India’s international financial services centre while improving GIFT City’s competitiveness as an international investment hub.The consultation paper has invited public comments on the proposal until August 7.Published on July 19, 2026
