Circular F. No. IFSCA-PLNP/80/2024-Capital Markets, Dated 30.12.2025
1. Introduction
The International Financial Services Centres Authority (IFSCA) has issued clarifications on the computation of liquid net worth under the IFSCA (Capital Market Intermediaries) Regulations, 2025. The clarification aims to remove ambiguity and ensure uniform application of net worth norms by regulated entities operating in IFSCs.
2. Scope Of The Clarification
The circular specifically addresses the components that may be considered while calculating liquid net worth. These clarifications apply to entities registered as capital market intermediaries under the IFSCA regulatory framework and are intended to streamline compliance and reporting practices.
3. Inclusion Of Capital And Deposits
IFSCA has clarified that base minimum capital, interest-free deposits, and margins maintained by registered broker dealers and clearing members shall be included as part of liquid net worth. This inclusion provides clarity on the treatment of such funds for regulatory capital adequacy purposes.
4. Treatment Of Liabilities
The circular further clarifies that liabilities are to be excluded while computing liquid net worth. This ensures that only eligible liquid assets and qualifying capital components are considered for determining regulatory compliance under the Regulations.
5. Conclusion
The clarifications issued by IFSCA come into force with immediate effect. Capital market intermediaries operating in IFSCs should review their net worth computation methodologies and align them with the clarified provisions to ensure ongoing regulatory compliance.
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