The International Financial Services Centres Authority (IFSCA) has taken regulatory action against several Fund Management Entities (FMEs) operating in GIFT IFSC for non-compliance with the IFSCA (Fund Management) Regulations, 2025. Through supervisory measures, including unannounced office visits, the IFSCA found some FMEs had closed or unattended offices during operational hours, and their designated Key Management Personnel (KMPs) were consistently absent. This violates Regulations 7(5) and 10(1), which mandate KMP presence in the IFSC and adequate infrastructure. As a result of these persistent breaches, the IFSCA is initiating regulatory actions against nine FMEs. The Authority emphasizes its commitment to upholding regulatory standards and advises all FMEs to maintain functional offices and ensure KMP presence as required.
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
PRESS RELEASE
Regulatory action(s) against certain Fund Management Entities for non- compliance with IFSCA (Fund Management) Regulations, 2025
The International Financial Services Centres Authority (IFSCA) has undertaken a series of supervisory measures to assess compliance by the Fund Management Entities (FMEs) operating in GIFT IFSC.
As part of these measures, IFSCA has also conducted multiple rounds of surprise visits to the office premises of the FMEs. These visits are intended to, inter alia, verify the presence of Key Management Personnel (KMPs) at the designated offices of FMEs in terms of the IFSCA (Fund Management) Regulations, 2025. Based on these visits, IFSCA has been taking appropriate actions against the FMEs which were consistently found noncompliant with the applicable regulatory provisions.
In the latest round of such visits, it was again observed that certain FMEs had their office premises either closed or unattended during operational hours, and / or that the designated KMPs were consistently found absent. This pattern of persistent noncompliance contravenes certain core requirements for the FMEs specified under IFSCA (Fund Management) Regulations, 2025, specifically:
i. Regulation 7(5) which states that, “The applicant shall ensure that the aforementioned principal officer as specified under sub-regulation (1) and other KMPs as specified under sub-regulations (2), (3) and (4), shall be based out of IFSC…..”
ii. Regulation 10 (1) which states that, “The entity has the necessary infrastructure like adequate office space, equipment, communication facilities and manpower to effectively discharge its activities under these regulations and circulars issued thereunder. The infrastructure requirements should be commensurate to the size of its operations in IFSC.”
In view of the continued instances of non-compliance observed across multiple recent visits, IFSCA is initiating appropriate regulatory action(s) against 9 FMEs in IFSC.
IFSCA reiterates its commitment to maintaining high regulatory standards and ensuring a robust and transparent regulatory ecosystem in GIFT IFSC. Accordingly, all FMEs are advised to maintain functional offices in IFSC and ensure presence of the Key Managerial Personnel in accordance with the provisions of the IFSCA (Fund Management) Regulations, 2025.
July 18, 2025
GIFT City, Gandhinagar
