Pursuant to Regulation 7 of the newly notified IFSCA (Fund Management) Regulations, 2025, International Financial Services Centres Authority (IFSCA) has, vide circular dated February 20, 2025 (Circular) specified the manner for the appointment of and change of key managerial personnel (KMPs) by fund management entities (FMEs) operating out of International Financial Services Centres (IFSC), after registration has been granted by IFSCA.
According to the Circular, an appointment of or change of KMPs by FMEs would require the FME to file an intimation with IFSCA, in the format prescribed in the Circular. In cases where approval for appointment of or change of KMP was pending prior to the issuance of this Circular, FMEs may refile their applications under the updated framework.
IFSCA is required to review and provide its comments in respect of the appointment or change in KMPs within seven working days. FMEs are expected to consider these comments. The responsibility for ensuring compliance with the eligibility criteria for KMPs lies with both the FME and person(s) in control of FME. Accordingly, recruitment and succession of the KMPs must be planned by FMEs.
In cases where a KMP position becomes vacant, the position must be refilled with a suitable candidate and necessary intimation must be filed by the FME at the earliest and no later than 3 months from the vacancy. However, no KMP position should remain vacant for more than six months from the date of vacancy i.e. FME must ensure that the next candidate for the vacant position joins within six months.
Conclusion:
IFSCA’s framework governing appointment and change of KMPs, along with enacting strict compliance requirements to be followed by FMEs, reflects its commitment to maintain high regulatory standards.