IFSCA proposes rules for model portfolios by research entities in GIFT IFSC; comments by 30 November
TaxByKK · Compliance News · taxbykk.com9 Nov 2026
In short
IFSCA has proposed to clarify that a research recommendation by a research entity in the International Financial Services Centre includes offering a model portfolio, which is a basket of securities with recommended weightages. The draft circular sets operating rules: a formal research report, stated methodology and geographical universe, risk disclosure, benchmarking, an investment horizon and transparent rebalancing. Any entity, including a broker dealer, that wants to offer model portfolios would have to register as a research entity. Comments are open till 30 November 2026.
- Authority
- International Financial Services Centres Authority
- Type
- Consultation paper with draft circular (Annexure I)
- Date
- 9 November 2026
- Comments by
- 30 November 2026
- Send comments to
- akash.boddeda@ifsca.gov.in and rishikesh.wandhekar@ifsca.gov.in, with copies to pawan.kc@ifsca.gov.in and arjun.pd@ifsca.gov.in
- Regulations
- IFSCA (Capital Market Intermediaries) Regulations, 2025
- Format
- Comments in MS Word or MS Excel only
What changed
| Item | Before | Now |
|---|---|---|
| Model portfolios by research entities | CMI Regulations do not expressly provide for them | Draft clarifies that research recommendation includes offering a model portfolio |
| Who may offer | - | Any entity, including a broker dealer, must register as a research entity |
| Definition | - | A basket of securities for which a research report recommends weightages; a summary of recommendations without weightages is not a model portfolio |
| Rebalancing | - | Generally at predefined intervals; if done at other times, the reason must be communicated to clients |
This is a draft. The circular is undated (December XX, 2026) and may change after comments. The paper does not set a performance reporting format beyond requiring a clearly defined benchmark index used consistently.
Who it applies to
- Research entities and broker dealers in GIFT IFSC
- Investors who receive research from IFSC entities
- Compliance officers, company secretaries and lawyers advising IFSC capital market intermediaries
What to do
- Send comments by 30 November 2026.
- If you plan to offer model portfolios, check whether you are registered as a research entity.
- Map your research reports against the factsheet, methodology, risk and horizon requirements in the draft.
Reference
IFSCA Consultation Paper dated 9 November 2026, Offering 'Model Portfolio' by Research Entities in the International Financial Services Centre, with draft circular at Annexure I.
Read the official PDF: IFSCA consultation paperWritten by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
What counts as a model portfolio?
A basket of securities for which a research report recommends weightages; a mere summary without weightages does not.
Who must register as a research entity?
Any entity, including a broker dealer, that offers a model portfolio.
When do comments close?
30 November 2026.