Notification No. IFSCA/GN/2026/006, Dated: 27.01.2026
The International Financial Services Centres Authority (IFSCA) has notified the IFSCA (Fund Management) (Amendment) Regulations, 2026, introducing amendments to the IFSCA (Fund Management) Regulations, 2025. The changes are aimed at rationalising regulatory requirements, enhancing operational flexibility, and strengthening safeguards for fund operations in the IFSC.
1. Rationalisation of Eligibility and Experience Requirements
The amendments streamline the eligibility and experience criteria for key managerial personnel (KMPs) of fund management entities. By recalibrating these requirements, the Authority seeks to balance regulatory oversight with practical industry considerations, facilitating easier onboarding of experienced professionals without compromising governance standards.
2. Flexibility in Validity of Placement Memoranda
The amended regulations provide greater flexibility to extend the validity of placement memoranda, subject to payment of prescribed regulatory fees. This change allows fund managers additional time to complete fundraising or restructuring activities without the need for repeated re-issuance, thereby reducing procedural burden.
3. Minimum Corpus Requirement for Investment in Unlisted Securities
A key safeguard introduced through the amendments is the requirement that open-ended schemes must achieve a minimum corpus before investing in unlisted securities. This measure is intended to ensure adequate fund stability and liquidity prior to exposure to relatively illiquid assets.
4. Regulatory Objective and Impact
The amendments reflect IFSCA’s approach of rationalising compliance while strengthening prudential norms. By easing personnel-related requirements, introducing flexibility in fundraising documentation, and imposing corpus thresholds for unlisted investments, the Authority aims to promote orderly growth of fund management activities in the IFSC.
5. Key Takeaway for Fund Managers
Fund managers operating in the IFSC should review their KMP eligibility, placement memorandum timelines, and investment strategies for open-ended schemes to ensure alignment with the amended regulatory framework under the IFSCA (Fund Management) (Amendment) Regulations, 2026.
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