Circular No. IFSCA/13/2026-Capital Markets/1, Dated 01.04.2026
The International Financial Services Centres Authority (IFSCA) has amended its circular on Key Managerial Personnel (KMP) applicable to Fund Management Entities (FMEs), streamlining the approval framework for KMP appointments and changes.
1. Removal of Prior Review Timeline
The amendment omits the provision requiring the Authority to provide comments within 7 working days on:
- Appointment of KMPs
- Changes in KMP positions
This effectively removes the earlier time-bound review mechanism.
2. Withdrawal of Consideration Requirement
Earlier, FMEs were required to consider the comments provided by the Authority on such appointments or changes.
With this amendment:
- The requirement to consider such comments has been withdrawn
- FMEs now have greater operational autonomy in KMP-related decisions
3. Impact of the Amendment
As a result:
- The prior approval/review-based approach is relaxed
- The framework shifts towards a more self-regulated and disclosure-driven regime
- Administrative timelines and dependencies are reduced
4. Continuity of Existing Provisions
All other provisions of the circular dated 20th February 2025:
- Remain unchanged
- Continue to be fully applicable and in force
5. Conclusion
The amendment simplifies the KMP governance framework for FMEs by removing procedural constraints, enhancing ease of doing business, and allowing entities to manage leadership changes with greater flexibility, while retaining the core regulatory structure.
Click Here To Read The Full Circular
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