INDIA: IFSCA Announces Amendments to the Fund Management Regulations

Friday October 17 2025

The International Financial Services Centres Authority (IFSCA) published the Consultation Paper (CP) summarizes a series of proposals for amendments to the Fund Management Regulations.

These proposals have been broadly categorised under the following 3 categories (or a combination of these):

• Proposals aimed at enhancing Ease of Doing Business (EoDB): In IFSCA’s interactions with the industry participants, some of the areas have been identified where the FMEs in IFSC are likely to experience operational hassles. Such proposals have been categorized as ‘EoDB’. These proposals are aimed towards bringing in efficiency by streamlining processes/timelines, reducing operational issues and the compliance burden.
• Proposals aimed at introducing additional Safeguards: Given the notable pace of growth of fund management activities in IFSC, it is imperative that a strong culture of compliance is nurtured amongst the FMEs by, inter alia, ensuring adequate regulatory safeguards. These proposals are expected to lead to better protection of the investors in IFSC funds and orderly growth of business activities in IFSC. Such proposals have been categorized as ‘Safeguard’.
• Proposals aimed to provide Clarifications: The proposals are aimed to address drafting related issues, enhance readability of the FM Regulations or provide clarity of the regulatory intent. Such proposals have been categorized as ‘Clarification’.

In addition to the above, IFSCA, in order to facilitate innovation and support investments in sectors which are socially desirable, is planning to separately issue a Consultation Paper with the proposal to institute a regulatory framework for differential distribution in Restricted Schemes and Venture Capital Schemes with a view to facilitate blended finance and other fund structures.

Click on the above link for further information.