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

Lakshya Capital is a Registered Fund Management Entity (Non-Retail) in GIFT IFSC. It proposes to launch a retail scheme open to ordinary individuals with small ticket sizes. Which statement is correct?

Lakshya Capital cannot launch it. Retail schemes can be offered to the general public, so only an Authorised FME (Retail) is permitted to manage them. A Registered FME (Non-Retail) lacks that authorisation, and appointing a custodian or collecting risk acknowledgements does not cure the gap.

  1. AIt may launch the scheme after informing IFSCA within 30 days
  2. BIt may launch the scheme if it appoints a custodian
  3. CIt may launch it if every investor signs a risk acknowledgement
  4. DIt cannot launch it, because a retail scheme must be managed by an Authorised FME (Retail)Correct

Explanation

Retail schemes are open to the public at large, so they carry the highest investor-protection standards. Only an Authorised FME (Retail) may manage them. A Registered FME (Non-Retail) is not eligible, and a custodian or investor acknowledgements do not change its category.

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