Market Makers
Regulation 68
Market Makers
IFSCA (Fund Management) Regulations, 2025No change in 2026Chapter IV · Exchange Traded Funds (ETFs)
Chapter IV · Exchange Traded Funds (ETFs)
Regulation 68 – Market Makers
Medium importance about 3 min
Exchange Traded Funds: Index, debt, commodity and actively-managed ETFs, and how ETF units trade and redeem.
1
In plain English
The FME must appoint a market maker to provide two-way quotes and ensure ETF trading liquidity; market makers can create/redeem units directly with the FME.
In plain English
2
The rule, in its own words
Read the exact text of Regulation 68
68. (1) A FME shall appoint a market maker who shall be responsible for ensuring liquidity in the trading of ETF by way of providing two-way quotes.
(2) Market Makers shall be permitted to create units and seek redemptions directly from the FME.
(3) Recognised Stock Exchange(s) may provide a simplified framework for authorisation of intermediaries registered with the Authority as market makers.
(4) Recognised Stock Exchange(s) shall also provide detailed rules for market makers viz. maximum spread, minimum quantity, if any, incentives, margining, net-settlement etc.
Statutory text — Principal Regulations, 2025 (as amended to 30 January 2026), consolidated where amended. The notified Gazette text prevails. Tap a highlighted word for how it functions.
3
What this means in practice
Compliance actions
- Applies to
- ETF
- Frequency
- Per ETF, ongoing
- Evidence
- Market maker appointment agreement
4
Where it connects
Read alongside
5
Check yourself
Quiz Centre
Test yourself on Regulation 68
5 questions in the unified bank test this regulation. Each explains every option and cites the provision.
An ETF FME must appoint a market maker to provide two-way quotes and support liquidity.
6
Your notes
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Exchange Traded Funds