The India International Financial Services Centres Authority (IFSCA) has issued a consultation paper proposing a regulatory framework to allow differential distribution within Restricted Schemes and Venture Capital Schemes in GIFT IFSC, under the existing IFSCA (Fund Management) Regulations, 2025. The proposals are positioned as enabling blended finance and other innovative fund structures by giving fund managers greater flexibility in how distributions are structured. The framework would permit differentiated distribution mechanisms intended to support participation by a wider set of investor classes, including institutional, philanthropic and impact investors, while introducing safeguards aimed at transparency and investor protection. The paper links the initiative to efforts to mobilise private capital for climate and sustainable development goals, citing an estimate that India may require USD 10–20 trillion in investment to meet net-zero and related climate objectives; it also notes that as of June 30, 2025, 177 Fund Management Entities were registered in GIFT IFSC, having launched 272 schemes with aggregate commitments of USD 22.11 billion and cumulative investments exceeding USD 11 billion. IFSCA is seeking stakeholder feedback on the proposed framework by November 11, 2025.

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