Chapter III — Fund Management Framework Overview

How Section 12 jurisdiction is operationalised for fund managers and investment schemes set up in GIFT City, ahead of the detailed Fund Management Regulations decode.

Why fund management is the largest IFSC activity vertical

Fund management is the single largest category of entities registered with IFSCA — attracting both India-focused funds relocating from Mauritius/Singapore and new global funds using GIFT City as an Asia gateway, drawing on the tax concessions under Income-tax Act sections 10(4D) and 80LA (see the Tax Interface Master).

Three-tier Fund Management Entity structure

The framework recognises an Authorised FME (lowest activity tier — advisory and non-discretionary portfolio management only), a Registered FME (Non-Retail) (discretionary management of non-retail schemes — Venture Capital Schemes and Restricted Schemes sold only to accredited/institutional investors), and a Registered FME (Retail) (the only tier permitted to launch Retail Schemes sold to the general investing public, subject to the highest net-worth and governance bar).

Scheme categories

Venture Capital Scheme (VCS) — an unlisted, close-ended scheme investing predominantly in unlisted securities of start-ups/early-stage ventures, with lighter-touch disclosure. Restricted Scheme — open to accredited/institutional investors, broader mandate than a VCS. Retail Scheme — the closest IFSC equivalent to a domestic mutual fund, requiring a Registered FME (Retail) sponsor and SEBI-mutual-fund-equivalent disclosure discipline.

Where the detailed decode lives

Full FME-category eligibility criteria, minimum corpus, sponsor commitment, custodian/valuation requirements and scheme-level compliance are in the dedicated Fund Management Regulations page under Regulations below — this chapter is the structural map into that detail.

← Chapter II — Powers, Functions and Regulation-Making · Chapter IV — Banking, Insurance and Capital Markets Framework Overview →