IFSCA Proposes Secondary Listing Framework for ETFs in GIFT-IFSC: Key Highlights of the Consultation Paper

The International Financial Services Centres Authority (IFSCA) released a Consultation Paper dated August 27, 2026, inviting public feedback on a proposed regulatory framework that would allow Exchange Traded Funds (ETFs) — already listed on exchanges in India (outside IFSC) or in foreign jurisdictions — to obtain a secondary listing on a recognised stock exchange within the IFSC. The deadline for submitting comments is September 17, 2026.

This initiative marks a significant step in broadening the investment product landscape at GIFT-IFSC and aligns the Centre's regulatory architecture with globally recognised practices followed in jurisdictions such as Hong Kong, Singapore, and Mexico.

Background: Growth of Fund Management Ecosystem at GIFT-IFSC

IFSCA's fund management regulatory journey began with the IFSCA (Fund Management) Regulations, 2022, which came into force in May 2022. These regulations were subsequently reviewed and replaced by the IFSCA (Fund Management) Regulations, 2025 ("FM Regulations"), notified in February 2025.

As of July 31, 2026, the GIFT-IFSC fund management ecosystem hosts 235 Fund Management Entities (FMEs) and 416 schemes, reflecting sustained growth. A notable development has been the expansion of retail participation following taxation clarity extended to Retail Schemes and ETFs during the Union Budget for FY 2024-25. The number of investors in Retail Schemes surged more than thirteen-fold — from 255 as on September 30, 2025, to 3,438 as on March 31, 2026 — signalling a meaningful broadening of the IFSC's investor base beyond institutional players.

Against this backdrop, the ETF emerges as a globally prominent instrument through which retail investors access capital markets. According to industry estimates (ETFGI Press Release dated August 19, 2026), the global ETF market had grown to approximately USD 23.11 trillion in assets under management by July 2026, with the number of ETF offerings rising from 14,640 in July 2025 to 17,654 in July 2026. Critically, these 17,654 ETFs carried 34,072 listings across 85 stock exchanges in 66 countries, underscoring the sheer scale and significance of secondary listing as a mechanism in the global ETF ecosystem.

What Is Secondary Listing of an ETF?

A secondary listing of an ETF refers to the admission of an existing ETF — already listed and trading on an exchange in its home jurisdiction (the primary listing) — onto a stock exchange in another jurisdiction (the host jurisdiction). Importantly:

  • The ETF retains its primary listing in the home jurisdiction.
  • The fund manager, portfolio, and ISIN (International Securities Identification Number) remain anchored to the home jurisdiction.
  • No new fund product is created; the secondary listing simply adds an additional trading venue.

This structure means the ETF continues to be primarily regulated and managed in its home market while becoming accessible to investors on the IFSC exchange.

Existing Regulatory Position and the Gap Being Addressed

Regulation 114 of the FM Regulations already contemplates secondary listings at IFSC. It permits an ETF listed in India (outside IFSC) or in a foreign jurisdiction, and compliant with its home jurisdiction's laws, to list and trade on a recognised IFSC stock exchange. However, the current framework presupposes that the ETF is brought to the IFSC by a Fund Management Entity (FME) registered with IFSCA.