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

Kaveri Partners holds an Authorised FME (Non-Retail) authorisation from IFSCA. Its board now wants to float a retail scheme for public subscription. What is the correct position?

Kaveri Partners cannot launch the retail scheme on its present authorisation. An Authorised FME (Non-Retail) can manage only restricted schemes, so it must first obtain authorisation as an Authorised FME (Retail) from IFSCA. Raising the minimum investment or informing IFSCA afterwards does not cure the gap.

  1. AIt may do so, since all authorised FMEs can manage retail schemes
  2. BIt may do so after informing IFSCA within 30 days of the launch
  3. CIt may not, unless it obtains authorisation as an Authorised FME (Retail)Correct
  4. DIt may do so if it restricts the minimum investment to a high amount

Explanation

The scope of activity is fixed by the category held. A Non-Retail authorisation covers only restricted schemes, so managing a retail scheme requires the Retail authorisation. A high minimum ticket size does not turn a retail scheme into a restricted one, and post-launch intimation is not a substitute for authorisation.

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