NEW DELHI: With the growing need to facilitate investors at large to invest in private markets, the International Financial Services Authority (IFSC) has proposed to facilitate retail close-ended schemes to invest in unlisted securities, subject to conditions. The IFSC on Thursday notified a comprehensive regulatory framework for Investment Funds in the official gazette on April 19, 2022.
A fund management entity (FME) will be registered with IFSCA and manage different types of schemes if it meets the eligibility criteria, as per the regulations. FME have to be permitted to create special purpose vehicles under the main scheme to enable undertaking co-investment or leverage along with the fund, subject to certain conditions.
“Globally, there is an increasing need for having a formal structure for managing and preserving the wealth of the High Networth Individuals (HNIs) and Ultra HNIs and their families. A framework has been provided in the regulations,” the release said.