GIFT City implements new maritime and securities regulations

GIFT City is undergoing regulatory shifts to bolster its position as a global maritime and financial services hub. New maritime frameworks, including the Merchant Shipping (Registration of Vessels) Rules 2026, aim to provide a clearer pathway for the registration of foreign vessels under bareboat charter-cum-demise (BBCD) arrangements.

To support this, the Ministry of Ports, Shipping and Waterways has exempted eligible International Financial Services Centre (IFSC) units from certain licensing requirements under the Coastal Shipping Act, 2025. This move is intended to facilitate ship-owning, leasing, and financing by leveraging the zone’s tax holidays and lack of FEMA restrictions.

Simultaneously, the International Financial Services Centres Authority (IFSCA) has introduced the IFSCA (Prohibition of Market Abuse in Securities Markets) Regulations, 2026. This new framework consolidates rules against insider trading, fraudulent practices, and market manipulation into a single set of regulations for the IFSC. These new rules will replace existing SEBI regulations within the zone, granting the IFSCA authority to issue warnings, censures, or cancel registrations to protect investors and ensure market integrity.