India@2047

Opportunities for financial institutions

and professionals @
GIFT IFSC -
India’s International Financial Centre

International Financial Services Centre Authority

Ministry of Finance, Government of India
GIFT City, Gujarat, India
www.ifsca.gov.in 1
India: Driver of Global Growth
5th Largest Economy
• Robust growth rate: 7.2% (FY 22-23)
• India’s GDP reached $ 3.75 Tn mark (2023)
• Adding $ 0.75 trillion every 2 years
• Record exports of $ 750 Bn (FY 22-23)
Structural Reforms in India
• Goods and Services Tax (GST)
• Insolvency and Bankruptcy Code (IBC)
• Direct Tax reforms – Rate cut, EODB
• Production Linked Incentives Scheme
Skilled and Young population
• 65% of population under 35 years
• Enrolment in Higher Education: 43 Mn.
• 1 Lac registered Indian Start-ups
• Cost effective work-force
Financial Sector Reforms
• Financial Inclusion – 514 Mn Bank
Accounts, 1.3 Bn Aadhaar, 1.2 Bn Mobile
phones
• Reduction in Corporate Tax Rates
• United Payment Interface (UPI)
2
India’s Financial Services demand met by
Global Financial Centres

Ireland
UK
USA Luxembourg

Cayman Dubai Hong Kong

Islands

GIFT IFSC
Singapore

Mauritius

Key financial services being availed from overseas jurisdictions

Banking Investments Capital Markets Reinsurance

3
India@100: Vision 2047

Economy Per Capita Income Industrial Sector

GDP Size: $ ~30 Tn To grow 9x to ~ $ 26,000 Share to rise from 26% to 35%
(% of GDP)

1. India will need a cumulative net capital inflow of $11-18 Tn. to fund its
GFCF requirement for 2047 ~ $ 750 Bn /year

2. India will require ~ USD 4 Tn. 3. India will require ~ USD 10 Tn. to
to meet Infrastructure Targets by meet its net-zero emission
2030 (NIP) commitment by 2070
4
Hon’ble PM’s Vision for GIFT IFSC

“We want to make GIFT City the Global

Nerve Centre of New Age Global Financial
and Technology Services”

“Bharat would require at least USD 10 trillion

by 2070 to achieve the Net Zero Target.
Financing from global sources is essential for
this investment. Hence, we aim to make IFSC a
global hub for sustainable finance.”

“GIFT City is an important gateway to

connect India with global
opportunities….When you integrate with
Hon’ble Prime Minister of India GIFT City, you will integrate with the
Sh. Narendra Modi
whole world”

5
GIFT International Financial Services Centre
The answer to India’s 2047 Financial Capital Needs

Gateway of India for Financial Services

6
 CONFLUENCE OF TRI-CITIES

Gandhinagar

GIFT City

Ahmedabad

• 20 Mins from Ahmedabad International Airport.
• 15 Mins from Nearest Railway Station.
• Walk to Work – 2 Residential apartments ready
and 22 under construction in GIFT City
• Metro Railway Connectivity to Ahmedabad (2024)
• Mumbai Ahmedabad High Speed Bullet Train (2026)
• Spread across 886 Acres (being expanded to 3300 acres)
• Built up Area - 0.4 mn sqft operational, 1 mn sqft under construction
7
INTEGRATED DEVELOPMENT
COMMERCIAL
BUSINESS DISTRICT TECHNOLOGY

• Smart & Intelligent offices • Broadband FTTP

• High-rise business district • Shared IT services

• Landmark building • Global connectivity

DEDICATED RETAIL CUM

RESIDENTIAL ZONE ENTERTAINMENT
HUBS
• Well planned residential areas
• High quality entertainment and
• Walk-to-work
recreational areas
• Affordable housing
• Smart retail spaces, Restaurants and
Sports areas

MOBILITY SOCIAL
• External Connectivity includes MRTS
INFRASTRUCTURE
/ Roads • Educational Institutes
• Efficient Public - Private • International & Domestic
Transportation Schools
• Dedicated Pedestrian Walkways • State-of-the-art healthcare 8
• Dedicated Multilevel Parking • Universities / Training schools
 International Finanical Services Centres Authority

IFSCA established as a
11 Unified financial regulator under the IFSCA Act, 2019

22 IFSCA is mandated to develop and regulate financial institutions, financial services and
financial products within the International Financial Services Centre’s in India

IFSCA is vested with combined powers of four domestic financial regulators namely RBI*,
33 SEBI*, IRDAI* & PFRDA* under 15 Central Statutes

*RBI- Reserve Bank of India, *SEBI- Securities and Exchange Board of India, *IRDAI- Insurance Regulatory and Development Authority & *PFRDA-
Pension Fund Regulatory and Development Authority 9
Jurisdictional Comparison

FEMA Currency Tax Law

Rest of the world Offshore Respective Resident’s

Offshore
(Foreign Jurisdiction) Non-Resident Int’l Currency Jurisdiction

IFSC Offshore 11 Currencies Tax Holiday Indian Jurisdiction

(SEZ) Non-Resident (₹ Not Permitted) (Tax Resident)
INDIA

India Onshore Primary ₹ Taxes as

applicable Indian Jurisdiction
(DTA) Resident denominated
(Tax Resident)

10
GIFT IFSC: Unique and Distinct Features

Dedicated & Unified Full-fledged financial

Financial Regulator ecosystem with global
(IFSCA) connects

Full Convertibility with

GIFT Best-in-class regulations
11 foreign currencies–
International (Internationally Aligned)
INR not permitted
Financial
Services Centre
(IFSC)
Sovereign support, including
Attractive Tax Regime special carve outs from
domestic laws

• Access to large hinterland Indian economy (Hinterland advantage)

Competitive Edge • Beneficial cost of operations (Cost advantage)
• Availability of skilled talent pool (Talent advantage) 11
Overview – IFSC - Business Activities
BANKING
● Indian Banks (16)
● Foreign Banks (10)
● Global Administrative
Office (1)
● Rep. Offices
INSURANCE
● Indian & Foreign Insurer (7)
● Indian & Foreign Reinsurer (1)
● Insurance Intermediaries (21)
● Insurance Web-Aggregators
CAPITAL MARKET ASSET MANAGEMENT
● Stock Exchanges (2) ● Fund Management Entities (87)
● Clearing Corporation (2) ● Alternate Investment Funds (105)
● International Depository (1) ● Investment Advisers (6)
● Broker Dealers (72) ● Portfolio Managers (10)
● Investment Bankers (2) ● Distribution Services (6)
● Custodians (5)
● Depository Participants (9)
EMERGING BUSINSESS
● Global Fintech Hub (47)
NICHE INSTITUTIONS
● Global in-House Centres (3)
● International Bullion Exchange (1)
● Sustainable Finance
● Finance Companies (6)
● Foreign Universities & Insitutions (2)
● Global Treasury Centre (3)
● Professional Service Providers (62)
● ITFS Platform (3)
● Aircraft Leasing & Financing (28)
● Ship Leasing & Financing (10)
12
Regulatory Architecture

IFSCA’s Regulations Benchmarked with Global Best Practices

Issuance and
Banking Bullion Exchange Global In-House FinTech Entity Listing of Finance Company
Regulations 2020 Regulations 2020 Regulations 2020 Framework 2022 Securities Regulations, 2021
Regulations, 2021

Market Framework for

Framework for Framework for Fund Capital Market
Infrastructure Global Corporate
Aircraft Lease Ancillary Services Management Intermediaries
Institutions Treasury Centres
2022 2021 (Regulations) 2022 Regulations 2021
Regulations 2021 2021

Registration of
Insurance Framework for Foreign AML, CFT and
Insurance Framework for
Intermediary setting up ITFS University KYC Guidelines
Business Ship Lease 2022
Regulations 2021 2021 Regulations 2022 2022
Regulations 2021

Insurance Manner of
Payment & Investment by Framework for
Products and Insurance Web IFSC Insurance Global Re-Insurance
Pricing Receipt of
Aggregator, 2022 Office Administrative Regulations 2023
Regulations 2022 Premium
Regulations 2022 Regulations 2022 Office 2022 13
Business Highlights: GIFT IFSC
620 +
Number of IFSCA Registered*
Entities till January 2024
6000+
Employment in GIFT SEZ in
January 2024
140 +
Total Number of Aviation
Assets leased from IFSC till
January 2024
$ 75 Bn $ 52 Bn
Monthly turnover on IFSC Total Banking Asset Size in
International Stock January 2024
Exchanges in January 2024
$ 54 Bn $ 714 Bn
Cumulative Banking transactions
Cumulative Debt Listing on till January 2024
IFSC Exchanges till January
2024
$ 31 Bn + $ 755 Bn
Total targeted corpus of Cumulative Derivative transactions
Alternative Investment booked by Banks till January 2024
Funds till January 2024 14
*Registered, Licensed, Authorized, Notified, etc.
 Key Entities in: GIFT IFSC and GIFT City
Banking Alternative Ancillary Companies in
Other Entities
Investment Funds Services DTA

15
 COMPETITIVE TAX REGIME

● Tax Holiday on Business Income for 10 out of 15

years

● Minimum Alternate Tax* @ 9%

● No CTT**/STT**/GST**/Stamp Duty

● Reduced Withholding Tax of 9% on interest paid

on Debt Instruments

● Competitive Tax Regime for Funds

●Incentives under Gujarat IT/ITes Policy

(2022-27)

* MAT provisions not applicable for companies opting for concessional

tax rate under Sec. 115 BAA of Income Tax Act, 1961
**CTT- Commodity Transaction Tax, STT- Securities Transaction Tax,
GST- Goods and Service Tax 16
Banking Ecosystem

17
1. Banking Sector
• Banks in GIFT IFSC are provide following services: 11 Foreign Banks & 1MDB

Wholesale Corporate Retail

Banking Banking Banking
Trade ECB* ODI**
Finance
Acquisition Loan Investment
Finance Syndication Banking
16 Indian Banks
• IFSCA Banking Handbook: Single source for all
banking related regulatory matters
• Wide array of activities permitted for Banks
• Substantial growth in Non-Deliverable Forwards
(USD-INR) with $ 2 Bn. of avg. daily turnover
• SMBC given in-principle approval in Feb 2024
* External Commercial Borrowing ** Offshore Derivative Instrument 1818
Capital Market Ecosystem

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2. Capital Market Highlights

Key Developments Two Operational International Exchanges

NSE IFSC-SGX Connect Live: Full Liquidity Switch

1 took place on 3rd July 2023

Two Clearing Corporations

Retail Indian Investors provided with opportunity to

2 trade in select US Stocks on NSE IFSC platform via
Unsponsored Depository Receipts

One International Depository

India INX Global Access subsidiary of India INX has

3 been granted approval to provide access to global
markets through international brokers
• Index Futures NIFTY 50 – Avg. Daily turnover – USD 2 bn
• Direct Listing of Indian Stocks starting Q2 2024
20
20
Funds Ecosystem

21
 3. Funds Industry:
• Emerging as a preferred jurisdiction for global
funds industry incl., Venture Capital Funds, Funds Ecosystem in GIFT IFSC 1
Private Equity, Hedge Funds, Climate Funds, Total Commitment to Funds: $ 31 Bn
102
etc. 105

• Three categories of FMEs: 87

I. Registered FME (Retail)

70
II. Registered FME (Non-Retail) 63
56
III. Authorized FME 55
51

39
• Sovereign Wealth funds/pension funds : ADIA, 30 32
GIC, Temasek, CPPIB investing in IFSC Funds 22 24
13 13
• Entire ecosystem present including Trusteeship 1 1 3 3
firms, Custodians, Fund Administrators, Law Mar-21 Jul-21 Dec-21 Mar-22 Jul-22 Dec-22 Mar-23 Apr-23 30- Nov -23
Jan-24

firms, Auditors etc. Fund Management Entities 1 3 13 22 30 55 63 70 87

AIFs 1 3 13 24 32 39 51 56 105

• Dedicated ESG Funds set up Fund Management Entities AIFs

22
Fund Ecosystem
AIFs ( Venture Capital Funds, Private Equity Funds & Hedge Funds)

Portfolio Managers/Investment Advisors

23
23
Insurance Ecosystem

24
4. Permissible Business for IFSC Insurance Offices(IIO)

Direct Insurance (Life) Direct Insurance (NL) Direct Insurance (Health) Re-insurance

➢ Indian Diaspora (such ➢ Units in IFSC, ➢ Indian Diaspora (such ➢ RI Support to cedants
NRIs and PIOs etc). ➢ Other SEZs in India, NRIs and PIOs etc). (IIOs) in the IFSC
➢ Life Insurance policies ➢ From outside India ➢ Health Insurance ➢ Retro support to IIOs
for Non-resident (subject to local laws), policies for Non- in the IFSC,
employees of Indian ➢ Coverage for Indian resident employees of ➢ RI support to Indian
companies interest/risk abroad Indian companies Direct insurers
➢ Properties in India ➢ Group Health (cedant)
➢ Group Life Insurance
business for SEZ and (subject to Sec. 2CB of Insurance for SEZ and ➢ Retro support to
the Insurance Act, IFSC employers for Indian Re-insurers /
IFSC employers for
1938), their employees FRBs
their employees
➢ Insurance in relation to ➢ Foreign nationals ➢ RI and Retro support
➢ Foreign nationals offshore risks of (medical tourism) to cedants/re-insurers
exporters & importers based outside India.

IIO registered as place of business / branch, shall be permitted to transact such class of business which is
permitted to the Applicant by its home country regulatory or supervisory authority 25
Details of Registered IIOs /
IFSC Insurance Intermediary Offices (IIIOs) - 22
IIIOs
IFSC Insurance Offices (IIOs) - 8

26
Aircraft Leasing Ecosystem

27
5. Aircraft & Ship Leasing

Fastest Growing Market Majority of fleet is on Lease

India is 3rd largest domestic aviation market and 75% - 80% of Indian fleet (~700 Aircrafts) are
amongst the fastest growing markets globally on operating lease from Ireland (leasing hub)

One of Largest Orderbook Forex Outflow as Lease Rentals

2000 aircrafts to be purchased Airlines in India are projected to pay USD 5 Bn per
in next 10 years by year for the next ten years towards lease rentals
Air India, Vistara, Indigo & Akasa
Aircrafts leased from GIFT IFSC
GIFT IFSC ecosystem
• Policy, regulatory and tax enablers in place

• 28 aircraft lessors registered in GIFT IFSC

• 148 Aircrafts/Helicopters/ Engines, etc. leased so far

• 10 Ship lessors registered also enabled

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FinTech Hub

29
6. Creating a world-class FinTech hub

Fintechs & TechFins Regulatory Cooperation

✓ Direct Authorization ✓ Inter-Operable Regulatory Sandbox
✓ Limited-Use Authorization FinTech with Domestic India Regulators
FinTech Entity
Framework Bridges (IoRS)
2022 ✓ IFSCA-MAS (FinTech Bridge with
Singapore)

Categories of Grants
✓ FinTech Startup Grant FinTech Hub
✓ Proof of Concept Grant FinTech Physical
✓ Green FinTech Grant Incentive Infrastructure ✓ Co-working spaces created
✓ Listing Support Grants Scheme 2022 (FinX Labs operational with
✓ Other Grants 48 seats)
✓ Tie-ups with Incubators

Investor Ecosystem
Regulatory Cooperation Investor Eco-
✓ Flagship Event to establish Infinity Forum system ✓ Tieups with VCs
‘Thought Leadership’ ✓ Tieups with Angels, Private
✓ Hackathon Series I-Sprint-21 Equity players.
and I-Sprint-22 30
Sustainable Finance

31
 7. Sustainable Finance

Bond and Credit Markets

• Globally aligned Regulatory Framework for Estimates suggest that India will require
ESG Debt Securities over USD 10 Tn. to meet its net-zero
• Pre & Post Issuance Disclosures emission commitment by 2070
• Mandatory External Review
• 1st of its kind International Sustainability ESG Listing (USD Bn)
Platform launched by NSE-IFSC
11.6
10.2

Banking 9.2
• Mandatory board approved policy for 8.1
7.2
Sustainable Lending
• 5 % loans to be directed towards Sustainable
Lending
• Banks commenced lending from FY 23-24
2 2
Funds Industry
• Sustainability related disclosures for large
Fund Entities (AUM >$ 3 Bn) ESG Listing

• Dedicated ESG Funds/Schemes enabled Oct-20 Mar-21 Mar-22 Dec-22 Mar-23 Jan-24
May-23
• 1st ESG Fund launched from IFSC 32
International Bullion Exchange

33
8. India International Bullion Exchange (IIBX)

Key Enablers & Outcomes

• Bullion Regulations 2020
• Enabled Qualified Jewellers to import gold though
IIBX
• RBI enabled IBUs to participate as Professional
Clearing Members
• Refiners/Foreign Banks permitted to participate as
Qualified Suppliers
• Cumulative Vaulting capacity: 446 Tonnes (Gold)
Opportunity: India is 2nd largest importer of Bullion
Business Updates with yearly import of 800 + Tonnes
• Number of Qualified Suppliers: 24 IIBX will transform bullion ecosystem:
• Number of Qualified Jewellers onboarded: 112 • Disintermediation
• Quality assurance & Standardization
• Quantity of Bullion Traded on IIBX:
• Sourcing integrity
6598 Kg Gold
• Gradually emerge as Price Influencer
348920 Kg Silver
• Develop entire value chain for Bullion
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Professional Services Ecosystem

35
9. Professional Services Ecosystem

▪ Ancillary Service Framework 2021

enables:
i. Legal, Compliance and Secretarial;
ii. Auditing, Accounting, Bookkeeping
and Taxation Services;
iii. Professional & Management
Consulting Services
iv. Assets Management Support Services
and Trusteeship Services

▪ Ancillary services can provide services:

i. IFSC Entities
ii. Entities from foreign jurisdictions
iii. Indian entities who propose to open,
set up or carry out operations in
IFSCs

▪ 50 + Ancillary Services firms have been

authorized by IFSCA
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International Cooperation

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10. International Collaboration: MoU’s

1. IFSCA is an associate member of IOSCO and signatory to IOSCO’s MMoU

2. IFSCA is member of IAIS

Executed Inter-Regulatory MoU’s

ABU DHABI GLOBAL MARKET LUXEMBOURG: COMMISSION DE DUBAI FINANCIAL

FINANCIAL SERVICES SURVEILLANCE DU SECTEUR SERVICES AUTHORITY
REGULATORY AUTHORITY (ADGM- FINANCIER
FSRA)

QATAR FINANCIAL CENTRE AUTHORITY Singapore

FI SWEDEN

38
 SCAN to
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PRESENTATION

39
Annexure - IFSCA Funds Regulations explained
IFSCA (Fund Management) Regulations, 2022

1. Fund Management Entity FME

Authorised FME, Registered FME (Non-Retail) and Registered FME
(Retail).

2. Fund/ Scheme
Venture Capital Schemes (VC), Restricted schemes – Private
Equity/VC/Hedge Funds, Retail Scheme

IFSCA Fund 3. Specified Scheme

Management Exchange Traded Funds (ETFs), Environmental, Social and Governance
Regulations, (ESG), Investment Trusts, Special Situation Fund
2022
3. Management
4. Other Fund HYBRID (COLLABORATIONS
Activities WITH PARTNERS)
Portfolio Management Services, Family Investment Fund, and Fund lab
Leverage existing institutional structures or initiatives in the region. Funds
to be deployed as per need.

5. Innovations
Innovation Sandbox and Special Purpose Vehicles
Key Consideration for Choosing GIFT IFSC

Co-investment is
Single Registration and Simplified registration
Diversification and allowed in the fund
Unified Regulatory process for the FME
Leverage flexibility structure or through
Framework and funds
SPV

Regulatory framework
Availability of Green No PAN for Foreign that ensures investor Proximity to the place
Channel for Funds Investors protection and of investment
transparency

Cost-effective Comparable tax

jurisdiction of benefits as available in Availability of the
Taxation benefits
operations – Real other international Fund ecosystem
Estate, Manpower etc jurisdictions

42
Fund Management Entity Registration – Risk based approach

High Registered Retail

FME
Retail Fund/ETFs

Registered (Non-
Retail)
Entity Risk

VC/PE/REITs/InvITs
PMS

Authorised FME
VC Funds
Angle Funds
Family Office

Low/Light Compliance Requirement High

Eligibility Requirements from FME
Particulars Authorised FME Registered FME Registered FME (R)
(NR)
Reputation, Fit FME and its principal officers, directors/ partners/ designated partners, KMP and controlling
and Proper shareholders are fit and proper persons, at all times. Fit & Proper definition – CMI Regulations
The applicant should have a sound track record and general reputation of fairness and integrity in
all its business transactions.
Net-worth USD 75,000 USD 500,000 USD 1,000,000
(FME)

Legal Structure Company or LLP Company or LLP or Company or branch thereof (at least 4 directors, 2 or
or branch thereof branch thereof more Independent)
Experience FME or its holding company may or may >5 years of experience in managing AUM of at least
not have relevant experience but Key USD 200 million with more than 25,000 investors or At
personnel need to have relevant least one person in control having >25% holding shall
experience (detailed later) have at least 5 years of experience in financial services.
Other criteria for sound track record for new
generation Fin-tech companies – Market development.
Branch Mode Permitted subject to the entity being registered and / or regulated for a similar activity in any of
the FATF member country jurisdiction. 44
Substance Requirement

Particulars Authorised FME Registered FME (NR) Registered FME (R)

Office in IFSC Yes Yes Yes

Employees in At least 1 officer shall have more
IFSC than 5 years of experience in
dealing with securities market +
Professional Qualification
At least 2 officer shall have
more than 5 years of
experience in dealing with
securities market +
Professional Qualification
At least 3 officer shall have
more than 5 years of experience
in dealing with securities
market + Professional
Qualification

Designated 1 officer - overall responsibility of 1 officer - Overall 1 officer - Overall responsibility

Officials FME (including compliance and responsibility and 1 officer - Fund management
risk management) 1 officer - Compliance and and 1 officer - Compliance and
risk manager risk manager

Infrastructure FME should have necessary infrastructure, manpower, risk management policies (to identify,
and other address and monitor the risks associated with the funds’ assets that it manages), etc. to effectively
requirements discharge the activities of the FME. This should be commensurate to the size of its operations.
45
Sponsor Contribution (Skin in the game)
Particulars Venture Capital Restricted Schemes Retail / Non-Restricted Schemes
Schemes

FME Targeted corpus < USD 30 Close ended - Targeted corpus < Close ended - lower of 1 per cent of
Contribution mn: Minimum 2.5% but USD 30 mn: Minimum 2.5% but the corpus or USD 200,000
not exceeding 10% not exceeding 10% Targeted
Targeted corpus > USD 30 corpus > USD 30 mn: Minimum Open ended Fund - lower of 1 per
mn: Minimum USD USD 750,000 but not exceeding cent of the corpus or USD 2,00,000
750,000 but not exceeding 10%
10%
Open ended - Targeted corpus <
USD 30 mn: Minimum 5% but not
exceeding 10% Targeted corpus >
USD 30 mn: Minimum USD
1,500,000 but not exceeding 10%
1. Contribution requirements to be fulfilled by FME or its associates within 45 days (extension may be granted by Authority) and to be maintained on ongoing basis
2. Contribution to be included for the calculation of Net-worth
3. FME Contribution Exempted in the following cases:
a. Fund of Fund Schemes investing in schemes by FME or its related entity wherein FME or its related entity is required to make a sponsor contribution OR
b. More than 2/3 investors are accredited investors OR
c. Investors holding more than 2/3 AUM exempts the FME from the sponsor contribution requirements
4. In case of relocation of funds/ schemes established or incorporated or registered outside India to IFSC
46
Type of Schemes

Particulars Venture Capital Schemes Restricted Schemes ( Retail / Non-Restricted

Non- Retail) Schemes

Who? All 3 FMEs – Schemes investing Authorised and Registered FMEs

in companies incorporated for < Registered
10 yrs
Investor Category Accredited Investors or Investors Accredited Investors or Open: No restriction
Investing more than $250,000 Investors Investing more Close: $10,000 for Public in
than $150,000 Pvt. (50%), Nil otherwise (upto
10%)
Filing of Scheme Green Channel Schemes to be vetted by Schemes to be vetted by IFSCA
Document IFSCA.
Schemes to Accredited
Investors only -> Green
Channel
No. of Less than 50 Less than 1000, At least 2 At least 20
investors/schemes

Type of Scheme Close Ended Close or Open Ended Close or Open Ended
47
Fund Regime – Other Scheme Specific Requirements
Particulars Venture Capital Schemes Restricted Schemes (Non- Retail / Non-Restricted
Retail) Schemes

Scheme Company, LLP or Trust Company, LLP or Trust Company or Trust

Structure

Min Scheme USD 5 Million (Max USD 200 M) USD 5 Million USD 5 Million
size
Leverage Permissible subject to disclosure in offer document, Material Not permitted. Borrowing only
change with approval from 2/3 investors in value. Need to have for meeting temporary liquidity
comprehensive risk management framework appropriate to its requirement up to 20%
size, complexity and risk profile.
Investment Based on disclosure in document and governed by the internal Single Investee Company – 10%
Diversification investment policy of the fund Sector – 25% (except in case of
norms sectoral or thematic fund)

48
Other Aspects
Particulars Keys Points
Portfolio Registered FME may offer Portfolio Management Services (PMS) to its clients
Management Minimum ticket size: USD 150,000
Services (PMS) Funds to be kept in separate account, to be maintained in a bank account
Family Office A framework to facilitate a self-managed investment fund of a family office has been
provided in the regulations
Fund Lab The fund managers may try new strategies in a controlled manner and build a track
record for their fund
Special Purpose FME shall be permitted to create SPVs under the main scheme to enable undertaking
Vehicle (SPV) co-investment or leverage along with the Fund/ scheme subject to certain conditions
Environment Social The intent of making IFSC a hub for a host of activities related to sustainable finance,
Governance (ESG) disclosures have been proposed to be mandated at the entity level and scheme level
Exchange Traded IFSC shall be able to launch not just Index based ETFs but also Active ETFs and
Funds (ETFs) Commodity based ETFs
Stressed Assets Realizing the important role of IFSC in the Government initiative of addressing the
issue of NPAs faced by banks, a framework has been prescribed for special situation
funds to be launched by fund managers in IFSC
49
Process of setting up FME and Fund in IFSC

STEP ONE -- REGISTRATION OF FUND MANAGEMENT ENTITY

1) Identifying the Office Space
2) Registration with the Registrar of Companies
3) Application to IFSCA and SEZ Authority
4) Approval from IFSCA and SEZ Authority

STEP TWO -- REGISTRATION OF FUND

1) Registration of the Trust Deed or LLP Deed
2) Application to IFSCA and SEZ Authority
3) Approval from IFSCA and SEZ Authority

50