IFSCA Proposes Secondary Listing Route for Global ETFs in GIFT IFSC; Comments Due September 17

The International Financial Services Centres Authority has proposed a new route for exchange-traded funds already listed in India or overseas to obtain a secondary listing on a recognised stock exchange in the IFSC without necessarily requiring the ETF's fund manager to establish a Fund Management Entity in GIFT IFSC solely for that purpose. The proposal is contained in a consultation paper published on August 27, 2026, with public comments invited up to September 17, 2026.

The proposal is significant because it targets a gap between the existing IFSCA Fund Management Regulations and the way secondary ETF listings are commonly handled in international markets. If adopted, it could widen the menu of global ETFs available through IFSC exchanges while imposing eligibility, local-representation, disclosure and investor-protection conditions.

Why IFSCA is reviewing the existing framework

IFSCA says the GIFT IFSC fund-management ecosystem has expanded rapidly. As of July 31, 2026, the IFSC had 235 Fund Management Entities and 416 schemes. Retail participation has also broadened: the consultation paper says investors in Retail Schemes increased from 255 as of September 30, 2025 to 3,438 as of March 31, 2026, an increase of more than thirteen-fold.

The paper places that domestic development alongside the scale of the global ETF market. Citing industry estimates, IFSCA notes that global ETF assets had reached about USD 23.11 trillion by July 2026. The number of ETF offerings rose from 14,640 in July 2025 to 17,654 in July 2026; those 17,654 ETFs had 34,072 listings across 85 exchanges in 66 countries. IFSCA uses those figures to show that the same ETF being admitted to more than one trading venue is an established international model rather than the creation of an entirely new fund product.

What a secondary listing means

Under the consultation paper, a secondary-listed ETF would continue to retain its primary listing, fund manager, portfolio and International Securities Identification Number in its home jurisdiction. The additional IFSC listing would create another trading venue for the same ETF.

Chapter VII of the IFSCA (Fund Management) Regulations, 2025 already provides for an ETF listed in India outside the IFSC or in a foreign jurisdiction, and compliant with its home-jurisdiction law, to list and trade on a recognised IFSC exchange. IFSCA says the present framework proceeds on the basis that the fund is brought to the IFSC by an FME registered with the Authority.

According to the paper, global fund managers have expressed interest in secondary-listing overseas ETFs in the IFSC even when those managers are not registered as IFSCA FMEs. Because the ETF would continue to be managed and primarily regulated in its home jurisdiction, IFSCA is examining whether requiring the manager to establish an IFSC FME solely for the secondary listing is proportionate.

Key elements of the proposed framework

The consultation paper proposes amendments to Chapter VII of the Fund Management Regulations. The framework presented by IFSCA includes several safeguards:

- The ETF manager could be a Registered FME (Retail) in the IFSC or a retail-regulated manager from India or a foreign jurisdiction that meets the proposed regulatory and fit-and-proper conditions.

- The ETF proposed for secondary listing would generally be an index-replicating ETF that has been listed and traded for at least 12 months. The paper indicates that the seasoning requirement may be relaxed for managers with a sound track record.

- If the ETF manager is not an IFSCA-registered FME, a local representative would have to be appointed to act as a bridge between the ETF manager and investors or the Authority.

- Investors in the IFSC would need to receive at least the same level of investor protection as investors in the ETF's home jurisdiction.

- Disclosures on IFSC exchanges would be made in English and concurrently with disclosures made on the home exchange.

- The recognised IFSC exchange would frame the listing and trading conduct requirements, verify the ETF's eligibility and intimate the Authority.

The consultation draws on international practices in markets such as Hong Kong, Singapore and Mexico. IFSCA observes that these regimes generally do not require the overseas fund manager to establish itself in the host jurisdiction, but they place weight on home-jurisdiction regulation, a product track record, local representation, timely disclosures and market-making arrangements.

What IFSCA expects the proposal to achieve

For investors, IFSCA says secondary listing could bring established global ETFs covering equities, bonds and other assets onto a recognised IFSC exchange. For exchanges, a broader ETF shelf could add trading participants and volumes and diversify an IFSC product mix that the paper describes as presently more derivative- and debt-oriented.

For global managers, the proposed route is intended to offer access to the IFSC ecosystem without requiring a full local fund-management establishment purely for an existing ETF. IFSCA also expects secondary listings and market-making activity to improve familiarity with ETFs in the IFSC and, over time, support the market for ETFs domiciled there.

Consultation closes September 17

IFSCA has invited comments on the proposed amendments by September 17, 2026. The consultation paper specifies that comments should be submitted in MS Word or MS Excel format to the Fund Regulation officials identified in the paper.

For fund managers, exchanges, market makers, distributors, compliance teams and advisers, the immediate issue is to assess the proposed eligibility and local-representation model, disclosure synchronisation, investor-protection equivalence and the practical responsibilities that would sit with the IFSC exchange. The proposal is not yet a final regulatory amendment; the final framework may change after consultation.

Key takeaway

The proposal combines a live public-comment deadline with a potentially material expansion of GIFT IFSC's fund and exchange product framework.