The International Financial Services Centres Authority (IFSCA) has notified IFSCA (Fund Management) Regulations, 2025. The existing IFSCA (Fund Management) Regulations, 2022 stands repealed. The changes as introduced in the new Regulations are effective from February 10, 2025.
Key changes include the following:
- Specifies the definition of Venture Capital Schemes (VCS) under Regulation 2.
- Revision in the provision of Track Record and Reputation of Fairness in business transactions under Regulation 6.
- Fund Management Entity (FME) managing an Asset Under Management (AUM) of at least USD 1 billion (excluding the AUM of fund of funds schemes, as at the close of a financial year) shall, appoint an additional KMP in addition to the principal officer and compliance officer under Regulation 7.
- Revision in the criteria of ‘Fit and Proper’ person under Regulation 9.
- Placement Memorandum for launch of VCS shall be valid for a period of 12 months as introduced under Regulation 19.
- Minimum size of the corpus shall be USD 3 Million instead of USD 5 Million under Regulation 23.
- The VCS cannot buy or sell securities from associates, other schemes, or investors committing at least 50% of the corpus unless approved by 75% of the investors by value under Regulation 23.
- Separate yearly disclosure requirements for Portfolio and Net Asset Value (NAV) to the investors by the FME under Regulation 24.
- No requirement of appointment of custodians for fund of funds schemes where the underlying scheme(s) have appointed independent custodian(s) under Regulation 132.
- FME intending to open a branch or representative office in jurisdictions other than IFSC for the purpose of marketing their offerings and client service shall give prior intimation to the Authority with the details regarding such branch or representative office under Regulation 137.
Regulation is hyperlinked below for ease of reference.
Source: IFSCA
