IFSCA Proposes a Framework to Boost Blended Finance in GIFT City

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  • Last Updated on 27 October, 2025

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IFSCA blended finance GIFT City

PR Dated: 23.10.2025

The International Financial Services Centres Authority (IFSCA) has released a consultation paper proposing new rules to allow differential distribution in Restricted and Venture Capital Schemes operating at GIFT City.

1. Objective of the Proposal

The proposed framework is aimed at enabling blended finance models, combining public, philanthropic, and private capital to fund sustainable and climate-related projects.

This approach seeks to attract diverse sources of capital while ensuring that projects meet their intended environmental and social impact goals.

2. Key Features

  • Flexibility for Fund Managers – Fund managers will have the ability to design diverse investor structures and allocate returns differentially among investors.
  • Transparency and Investor Protection – The rules will include safeguards to ensure transparency, fairness, and protection of investor interests, while supporting innovative financing models.

3. Stakeholder Feedback

IFSCA has invited comments and feedback from stakeholders on the proposed rules.

  • Deadline for submissions – 11th November 2025
  • Submission portal – www.ifsca.gov.in

4. Expected Impact

The proposal is expected to:

  • Facilitate blended finance for sustainable development,
  • Promote innovation in venture capital and restricted schemes, and
  • Enhance GIFT City’s position as a global hub for impact-oriented investments.
Click Here To Read The Full Press Release

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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