The India International Financial Services Centres Authority (IFSCA) has published a framework to facilitate co-investment by existing schemes at GIFT IFSC, operationalising the co-investment provisions in the Fund Management Regulations, 2025. The framework is aimed at enabling venture capital schemes and restricted schemes to set up Special Purpose Vehicle-based “special schemes” (also referred to as Co-Investment Vehicles) to execute investments faster, with or without leverage. Under the framework, the special schemes’ structure, objective and nature are defined, and the process is designed to reduce upfront regulatory friction. Special schemes may make investments before intimating IFSCA, and the term sheet can be filed with the Authority within 45 days from the date of the investments.
India International Financial Services Centres Authority 2025-05-21
India International Financial Services Centres Authority issues GIFT IFSC framework enabling venture capital and restricted schemes to co-invest via special schemes
The India International Financial Services Centres Authority (IFSCA) has issued a framework to enable co-investment by existing schemes at GIFT IFSC, aligning with the Fund Management Regulations, 2025. This framework allows venture capital and restricted schemes to establish Special Purpose Vehicle-based "special schemes" for expedited investments. These schemes can invest before notifying IFSCA, with a term sheet submission required within 45 days post-investment.