The India International Financial Services Centres Authority (IFSCA) published a press release on enforcement action against certain Fund Management Entities (FMEs) operating in GIFT IFSC after supervisory measures, including multiple rounds of surprise visits, identified repeated breaches of the IFSCA (Fund Management) Regulations, 2025. Recent visits found some FMEs’ premises closed or unattended during operational hours and/or designated Key Management Personnel (KMPs) consistently absent. IFSCA linked the issues to core requirements under Regulation 7(5) (principal officer and other KMPs to be based out of IFSC) and Regulation 10(1) (adequate infrastructure, including office space and manpower, commensurate with IFSC operations). On this basis, IFSCA is initiating appropriate regulatory action against nine FMEs and reminded all FMEs to maintain functional IFSC offices and ensure KMP presence in line with the regulations.
India International Financial Services Centres Authority 2025-07-18
India International Financial Services Centres Authority initiates regulatory action against nine fund management entities for persistent non-compliance in GIFT IFSC
The India International Financial Services Centres Authority (IFSCA) announced action against nine Fund Management Entities (FMEs) in GIFT IFSC for repeated breaches of the IFSCA (Fund Management) Regulations, 2025. Violations included premises being closed during operational hours and absence of Key Management Personnel (KMPs), contravening Regulation 7(5) and Regulation 10(1). IFSCA emphasized the need for FMEs to maintain functional offices and ensure KMP presence as per regulatory requirements.