IFSCA (Fund Management) Regulations, 2022
FME categories, scheme types, minimum corpus/net-worth thresholds, sponsor commitment and custodian/valuation requirements for funds set up in GIFT City.
FME category thresholds
Authorised FME: no minimum net-worth mandated but restricted to advisory/non-discretionary activity only. Registered FME (Non-Retail): minimum net-worth of USD 75,000, principal officer with relevant experience, at least two key managerial persons. Registered FME (Retail): minimum net-worth of USD 500,000 and materially higher governance, custodian-independence and disclosure standards, since it is the only tier permitted to launch a Retail Scheme.
Scheme-level minimum corpus
A Venture Capital Scheme requires a minimum corpus of USD 3 million; a Restricted Scheme (other than VCS) requires USD 5 million; sponsor/manager commitment (skin-in-the-game) is typically the lower of 2.5% of the corpus or USD 750,000, aligning economic incentives between the manager and investors.
Green Channel and expedited launch
A Restricted Scheme sold exclusively to accredited investors can use the Green Channel route — launch on filing, without waiting for prior IFSCA observations — provided the private placement memorandum carries specified risk disclosures; this materially shortens time-to-market versus a domestic AIF launch.
Custodian and valuation
A Registered FME must appoint an independent custodian and valuer once the scheme corpus crosses the specified threshold — self-custody/self-valuation by the manager is not permitted beyond the small-scheme carve-out, closing the conflict-of-interest gap that affects some offshore fund structures.
Co-investment and PMS overlay
FMEs may also offer discretionary Portfolio Management Services (PMS) to non-retail investors alongside pooled schemes, and schemes may permit co-investment by scheme investors directly into a portfolio company alongside the fund — both subject to conflict-of-interest and side-letter disclosure conditions in the regulations.
Source and review trail
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.
- Official starting point
- ifsca.gov.in