The International Financial Services Centres Authority (IFSCA) on November 09, 2026, issued a Consultation Paper on Offering ‘Model Portfolios’ by Research Entities in the International Financial Services Centre.
The following has been stated:
• The draft circular proposes to permit Research Entities operating in the International Financial Services Centre (IFSC) to offer Model Portfolios under the International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2025. The proposal clarifies that research recommendations may include curated baskets of multiple securities with specific weightages based on investment themes or strategies. Accordingly, any entity, including a Broker-Dealer, intending to offer Model Portfolios will be required to obtain registration as a Research Entity.
• The draft circular prescribes operational requirements, including issuance of Model Portfolios through formal research reports, disclosure of the geographical universe, asset classes, underlying investment themes, security selection methodology, investment horizon and associated risks. Research Entities will also be required to assign specific weightages to portfolio constituents, ensure consistency with their individual research opinions, clearly label portfolios according to their investment objectives, disclose predefined review and rebalancing intervals, communicate the rationale for any off-cycle rebalancing, and consistently use clearly identified benchmark indices, where applicable.
• Compliance with the proposed guidelines will be covered under the compliance audit prescribed by the CMI Regulations. Stakeholders have been invited to submit their comments and suggestions in the prescribed MS Word or MS Excel format to IFSCA by November 30, 2026.
