Archive · 8 Sep 2026
IFSCA Notifies New Market-Abuse Rules for GIFT City Securities
The IFSCA has created new rules for financial markets in GIFT City.
These rules are designed to protect investors and prevent dishonest trading.
They cover insider trading, market manipulation and unfair trading practices in one framework.
The rules prohibit activities such as circular trading and creating fake demand.
They also ban repeatedly placing and cancelling orders to influence prices without intending to trade.
False or misleading information about securities cannot be spread to influence investors.
Insiders may not share important secret information except for legitimate work or legal reasons.
Once the rules begin, they will replace SEBI’s older market-abuse rules in the IFSC.
IFSCA notified new regulations covering market abuse in GIFT City’s securities markets.
The framework combines rules on insider trading, fraudulent practices and unfair trading.
It will replace SEBI’s existing insider-trading and fraudulent-trading rules in the IFSC once effective.
Prohibited conduct includes price manipulation, circular trading, artificial demand and false information.
IFSCA may issue warnings, censure, or suspend or cancel registrations for violations.
- Who
- The International Financial Services Centres Authority (IFSCA) issued the regulations.
- What
- IFSCA notified the IFSCA (Prohibition of Market Abuse in Securities Markets) Regulations, 2026.
- When
- The regulations were notified in 2026; the article does not specify a notification date.
- Where
- They apply to securities markets in the International Financial Services Centre at GIFT City.
- Why
- The framework is intended to strengthen investor protection and prohibit market-abuse activities.
- Regulator
- International Financial Services Centres Authority (IFSCA)
- Regulations
- IFSCA (Prohibition of Market Abuse in Securities Markets) Regulations, 2026
- Market covered
- Securities markets in the International Financial Services Centre at GIFT City
- Rules replaced
- SEBI’s Prohibition of Insider Trading Regulations, 2015, and Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market Regulations, 2003
- Prohibited conduct
- Fraudulent transactions, price and benchmark manipulation, circular trading, artificial demand, and false or misleading information
- Enforcement powers
- Warnings, censure, and suspension or cancellation of registrations of regulated entities or persons
- Insider trading
- Communication of material non-public information is prohibited except for legitimate purposes, official duties or legal obligations