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GANDHINAGAR, India, November 11, 2026, The International Financial Services Centres Authority (IFSCA) has proposed allowing registered research entities operating in GIFT City to offer model portfolios, potentially expanding the range of investment related services available through India’s international financial services centre.
The proposal was outlined in a consultation paper issued on November 9, inviting comments from stakeholders until November 30. It seeks to clarify the regulatory treatment of model portfolios under the IFSCA framework governing capital market intermediaries.
Model portfolios are collections of securities assigned specific weightings according to an investment theme, strategy or research approach. The proposed change could allow eligible research entities to provide structured portfolio recommendations rather than limiting their services to research on individual securities.
Proposed change to research entity rules
Under the IFSCA Capital Market Intermediaries Regulations, 2025, registered research entities can publish research reports and recommendations concerning individual securities. These may include views such as buy, sell or hold recommendations and price targets.
However, the existing framework does not explicitly address the offering of model portfolios. The consultation paper proposes clarifying that research recommendations can also include model portfolios containing multiple securities with defined weightings.
If adopted, the proposal would require firms seeking to offer these portfolios to register as research entities under the applicable regulatory framework. This would provide a clearer basis for supervision and establish the responsibilities of firms providing such services.
Potential impact on GIFT City’s financial ecosystem
GIFT City has been developed as an international financial services centre intended to attract financial institutions, investment businesses and other cross border financial services providers. Its regulatory framework is designed to support a range of activities involving international markets.
Allowing registered research entities to offer model portfolios could expand the services available to investors and institutional clients operating through the centre. It may also create opportunities for research providers and broker dealers seeking to develop structured investment research products.
However, the proposal is still at the consultation stage. It should not be interpreted as an already implemented regulatory permission.
Stakeholder feedback and regulatory safeguards
The consultation period provides an opportunity for market participants to comment on the proposed framework. Their feedback may help the regulator assess disclosure requirements, conflicts of interest, portfolio methodology and the responsibilities of research entities.
Clear rules will be important because model portfolios can influence how investors allocate capital across different securities. Regulators will need to ensure that firms provide transparent information about portfolio construction, risks, assumptions and performance reporting.
The proposal reflects IFSCA’s continuing efforts to develop the regulatory framework for financial services in GIFT City. Its final form will depend on the outcome of the consultation and any subsequent regulatory action.
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