In a significant escalation of its enforcement drive, the International Financial Services Centres Authority (IFSCA) has cancelled the broker-dealer registration of String AI IFSC Private Limited, marking the first such licence revocation in GIFT City. The cancellation order, passed on April 6, 2026, follows a multi-year trail of non-compliance that began with surprise inspections in 2024 and culminated in a formal show-cause notice issued in December 2025.
Key violations cited include offices found closed during business hours, absence of Principal Officers or Compliance Officers, and insufficient infrastructure. IFSCA had already signalled “appropriate regulatory action” against non-compliant capital market intermediaries (CMIs). The String AI cancellation demonstrates that the regulator is prepared to move beyond warnings to actual licence cancellations.
Industry sources say the revocation is being closely watched as it addresses compliance gaps highlighted in previous inspections. “IFSCA has made it clear that letter-and-spirit compliance is non-negotiable,” noted a senior GIFT City executive.
