IFSCA has prescribed a standardized Net Worth Certificate format and an indicative annual audit checklist for Global Access Providers (GAPs) and broker dealers in IFSC. The circular dated February 12, 2026 is effective immediately.
The circular has been issued under the IFSCA Act, 2019 and relevant capital market regulations.
What the Circular Mandates
The February 12, 2026 circular introduces four compliance requirements:
- Prescribed Net Worth Certificate format
- Mandatory annual submission timeline
- Compulsory annual audit for GAPs
- Indicative structured audit checklist
The objective is to standardize capital adequacy verification and strengthen regulatory oversight within IFSC.
Regulatory Background
The circular refers to:
- The IFSCA (Capital Market Intermediaries) Regulations, 2025 (CMI Regulations)
- The circular dated August 12, 2025 on the Regulatory Framework for Global Access in IFSC
Under these provisions, Global Access Providers and broker dealers accessing global markets on a proprietary basis must:
- Maintain prescribed minimum net worth
- Submit annual certification of such net worth
The February 2026 circular operationalizes this requirement by prescribing format and audit guidance.
Net Worth Certificate – Compliance Framework
Annual Submission Requirement
GAPs and eligible broker dealers must submit a Net Worth Certificate for every preceding financial year.
The certificate confirms compliance with minimum capital requirements under the CMI Regulations, 2025.
Due Date
The Net Worth Certificate must be submitted on or before September 30 of the following financial year.
For example, for Financial Year 2025-26, the certificate is due by September 30, 2026.
Certification Authority
The Net Worth Certificate must be certified by an independent member of the Institute of Chartered Accountants of India (ICAI). This ensures:
- Independent verification
- Uniform reporting standards
- Reliable capital adequacy confirmation
Mandatory Annual Audit of GAPs
IFSCA has mandated that every Global Access Provider undergo an annual compliance audit. This audit strengthens supervisory oversight beyond financial statement review.
Eligible Professionals for Conducting the Audit
The annual audit must be conducted by a peer-reviewed member of:
- ICAI
- ICSI
- ICMAI
Peer review ensures adherence to professional standards and regulatory accountability.
Indicative Audit Checklist – Key Coverage Areas
IFSCA has issued an indicative checklist to guide the annual audit. The checklist broadly covers verification of:
- Net worth compliance
- Segregation of client and proprietary funds
- KYC and AML compliance mechanisms
- Agreements and contractual documentation
- Infrastructure and technology adequacy
- Regulatory disclosures
- Reporting obligations
- Payment of applicable regulatory fees
The checklist is indicative but serves as a structured compliance benchmark for GAPs.
Regulatory Impact
The circular strengthens the Global Access regulatory framework by:
- Standardizing net worth reporting
- Formalizing annual capital certification
- Introducing structured compliance audits
- Enhancing financial transparency within IFSC
Entities operating under the GAP framework must align internal compliance systems with the prescribed certificate format and audit requirements immediately.
Conclusion
IFSCA has formalized capital verification and compliance monitoring for Global Access Providers and broker dealers through a prescribed Net Worth Certificate format and mandatory annual audit framework.
Annual certification by an independent ICAI member and peer-reviewed audit now form core compliance obligations under the Global Access regime in IFSC.
Entities must ensure timely submission by September 30 each year to maintain regulatory compliance under the IFSCA Act, 2019 and the CMI Regulations, 2025.
Source: IFSCA Circular dated 12/02/2026 on Format of Net Worth Certificate and Checklist for conducting Audit of GAPs