Disclosures of dealing in securities by Directors and KMP of the all recognized MIIs in GIFT-IFSC

What is GIFT-IFSC?

GIFT IFSC (Gujarat International Finance Tec-city), India’s first IFSC is a Special economic zone established under IFSCA act, 2019, for seamless flow of Securities within and outside India by Foreign entities and certain domestic entities to encourage foreign Investments.

What is MIIs?

MIIs is a Market Infrastructure Institutes which include stock exchange or clearing corporation or depository.

• IFSCA had issued guideline vide circular 286/IFSCA/ CMD-DMIIT/PM/2021, Dated- September 13, 2021 “Code of Conduct and Code of Ethics for the Directors and Key Management Personnel (KMP) of recognized Market Infrastructure Institute (MIIs) in GIFT-IFSC”, with a view to improve the professional and ethical standards in the functioning of recognized MIIs thereby creating better investor confidence in the integrity of the securities/bullion market.
• Further, IFSCA issued clarification vide circular 286/IFSCA/ CMD-DMIIT/PM/2021/001, dated November 30, 2021, on the above mention circular (286/IFSCA/ CMD-DMIIT/PM/2021) regarding clause 5(c), clause 9 and clause 10, regarding disclosure of dealing in securities by Directors and Key Management Personnel will only be applicable with respect to dealings in securities in GIFT IFSC.

What is clause 5(c), clause 9 and clause 10?

Clause 5(c): Every Director of the recognized MII shall submit the necessary disclosures/statement of holdings/dealings in securities/bullion as required by the recognized MII from time to time as per their Rules or Articles of Association.

Clause 9: Disclosure of dealings in securities by Key Management Personnel of the stock exchange or clearing corporation or depository.

Clause 10: Disclosure of dealings in securities by Directors of the stock exchange or clearing corporation or depository.

Objective:

These circulars are issued by IFSCA

• To establish a minimum level of business/ professional ethics, towards establishing a fair and transparent marketplace.
• To enhance the level of market integrity and investor confidence, it is emphasized that a written code of ethics may not completely guarantee adherence to high ethical standards. This can be accomplished only if Directors and Key Management Personnel of the recognized MIIs commit themselves to the task of enhancing the fairness and integrity of the system in letter and spirit.

Varsha Laur, Audit Associate, SW India