Bourses eye overseas ticket with Ifsca’s new GAP framework

With Indian investors increasingly seeking diversification and offshore opportunities, the country’s stock exchanges are tapping the International Financial Services Centre (IFSC) in GIFT City’s Global Access Provider (GAP) framework to offer overseas products ranging from exchange-traded funds (ETFs) and mutual funds to select derivatives.

- KHUSHBOO TIWARI

The IFSC regulator, International Financial Services Centres Authority (Ifsca), introduced the GAP framework in August to channel cross-border capital flows, and connect Indian markets with global financial centres.

Under this regime, global access providers can facilitate trading in financial products listed on overseas exchanges, enter referral agreements for foreign mutual funds and alternative investment funds that are not directly traded abroad, and also offer additional products permitted under the Foreign Exchange Management Act (Fema).

Permissible offerings may also cover certain global derivatives, excluding index derivatives, bond derivatives, or USD-INR contracts already available on recognised exchanges in the IFSC.