IFSCA Proposes a Framework to Boost Blended Finance in 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.

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