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CS Professional · IFSCA - Regulations, Listing and Compliances · Fund Management Services

Ananya Capital Advisors plans to set up a GIFT IFSC entity that will launch a scheme open to the general public, including individual investors who are not accredited. Under the IFSCA (Fund Management) Regulations, 2022, which category of Fund Management Entity (FME) must it seek?

The entity must be an Authorised FME (Retail). Under the IFSCA Fund Management Regulations, only this category may launch retail schemes for the general public. Non-retail authorised or registered FMEs are confined to restricted schemes meant for accredited or eligible investors.

  1. ARegistered FME (Non-Retail)
  2. BAuthorised FME (Non-Retail)
  3. CAuthorised FME (Retail)Correct
  4. DAny FME category, as the scheme type does not depend on the category

Explanation

Retail schemes, which are open to the general public, can be launched only by an Authorised FME (Retail). Non-Retail categories, whether authorised or registered, are limited to restricted schemes aimed at accredited or eligible investors. Option D is wrong because the permitted activity is tied to the category.

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