IFSCA Amends Fund Management Rules on KMP and Scheme Norms

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  • Last Updated on 4 February, 2026

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IFSCA Fund Management Regulations

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.

Click Here To Read The Full Notification

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied