In an attempt to enhance ease of doing business for the fund management ecosystem within the Gujarat International Fin-Tech City IFSC (GIFT City IFSC), the International Financial Services Centres Authority (IFSCA) simplified norms for launching restricted (non-retail) funds and schemes under the IFSCA (Fund Management) Regulations, 2022 (FME Regulations) on April 5, 2024.
Key amendments:
Minimum disclosure requirements in scheme PPMs:
FMEs hence forth are required to provide comprehensive disclosures under the PPMs of all restricted schemes (non-retail) or funds proposed to be launched by them, covering all aspects vital to enable investors to make informed investment decisions. Some illustrative examples of minimum disclosures required under the PPMs as per the aforesaid circular include detailed representation of fund/scheme structure, investment strategies and objectives, principal terms such as the fund offering, closing timelines and tenure of the fund/scheme and target investors besides comprehensive details of the governance structure, investment manager and other key managerial personnel of the applicant FME.
Non-retail schemes covered under the ‘green channel’ route:
In terms of the circular, green channel route has been extended to all restricted schemes (non-retail) proposed to be launched by registered FMEs (non-retail). This essentially enables immediate launch of non-retail schemes on the date of filing of PPM along with application form and requisite documents. The amendment has done away with the requirement to wait for IFSCA’s comments and approval on the scheme PPM for a period of 21 days under Regulation 31(2) of the FME Regulations greatly reducing the regulatory oversight and resulting procedural bottlenecks thereby ensuring efficient and quick scheme launches for FMEs in GIFT City IFSC.
Online filing of scheme documents with the IFSCA:
IFSCA also contemplates establishing a web-portal for filing of scheme documents before launch of schemes/funds is undertaken by FMEs. Such an interface will help expedite the process of intimation to the IFSCA and ensure easy access to all scheme related documents for all stakeholders including FMEs.
Conclusion
These amendments will go a long way in providing ease of doing business for funds based in the GIFT City IFSC.