The India International Financial Services Centres Authority (IFSCA) published an update on the expansion of the fund management ecosystem in GIFT-IFSC, linking accelerated growth in registrations, fundraising and investment activity to its recent regulatory reforms and supervisory framework. The release highlights the IFSCA (Fund Management) Regulations, 2025, which retained the core Fund Management Entity (FME) registration model while introducing enhancements intended to ease doing business, clarify regulatory intent and strengthen investor protection. Recent regulatory measures cited include frameworks for Angel Schemes (2022) and Accredited Investors (2024), targeted exemptions to facilitate Sovereign Wealth Fund participation, a mechanism developed with the Securities and Exchange Board of India to enable IFSC-based funds with 100% NRI/OCI contributions via foreign portfolio investor routes subject to safeguards, a framework permitting co-investment through special purpose vehicles, and reforms enabling FMEs to provide third-party fund management services for Restricted Schemes with safeguards. As of June 30, 2025, 177 FMEs had launched 272 schemes, with cumulative commitments of USD 22.11 billion (up 40.5% quarter-on-quarter), cumulative funds raised of USD 10.5 billion (up 31.9% QoQ) and cumulative investments of USD 11.27 billion (up 39.6% QoQ), including over INR 95,000 crore in rupee terms and more than INR 26,000 crore invested in the previous quarter; around 85% of investments were directed towards India. The number of investors in Restricted Schemes exceeded 3,500 (up 19.35% QoQ) across 60+ jurisdictions, and two Retail Schemes received authorisation in the quarter. The supervisory approach combines quarterly off-site information collection with on-site reviews of operations and governance, alongside regulatory action where deemed necessary. IFSCA also noted that it has proposed draft amendments to the Ministry of Finance on the law relating to Variable Capital Companies in the IFSC, and that its industry engagement programme includes an ongoing second edition of its Chintan Shivir series.
India International Financial Services Centres Authority 2025-08-07
India International Financial Services Centres Authority reports USD 22.11 billion fund commitments and highlights 2025 reforms for GIFT-IFSC fund managers
The India International Financial Services Centres Authority (IFSCA) reported significant growth in the fund management ecosystem at GIFT-IFSC, attributing it to recent regulatory reforms and the IFSCA (Fund Management) Regulations, 2025. Key developments include frameworks for Angel Schemes, Accredited Investors, and mechanisms for Sovereign Wealth Fund participation, with notable increases in fund commitments and investments. IFSCA also proposed amendments to the Ministry of Finance regarding Variable Capital Companies and continues its industry engagement through the Chintan Shivir series.