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Informist, Tuesday, Jun. 24, 2025

 

 

MUMBAI – The International Financial Services Centre Authority has approved a proposal to allow setting up of third-party fund management services in GIFT City, the authority said in a release on Tuesday. This will allow registered fund management entities in IFSC to launch and manage restricted schemes on behalf of overseas or domestic third-party fund managers who are not required to establish physical presence in IFSC, the release said.

 

The 24th meeting of the IFSCA was held on Tuesday. 

 

"The third-party fund management services model is aimed at enhancing the competitiveness of IFSC by providing a cost-efficient, operationally scalable and globally aligned platform for international asset managers," the release said. The framework also incorporates a few safeguards to ensure regulatory oversight. 

 

The fund mangers would need to have an additional net worth of $500,000 to be able to provide third party services. A dedicated principal officer for each scheme set up at the third-party fund management services is also needed to ensure adequate governance and accountability, the release said. Among other safeguards, there is also a restriction of $50 million of corpus per scheme. "Aligned with global best practices, this model is expected to attract international fund managers and further deepen the fund management ecosystem within GIFT IFSC," the release said. 

 

The authority also approved the issuance of circular towards the framework for listing of transition bonds. Transition bonds are a type of debt instrument, similar to green bonds, but specifically designed to finance the transition of high-emission industries like mining, heavy industry, and transportation, to more sustainable, low-carbon operations. 

 

The regulations for IFSCA techfin and ancillary services were also approved by the authority on Tuesday. "The new regulations aim to promote innovation, operational efficiency, and regulatory clarity for entities that support the delivery of financial services in GIFT-IFSC and beyond," the release said.  End

 

US$1 = INR 85.98

 

Reported by Kabir Sharma

Edited by Akul Nishant Akhoury

 

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