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

Meridian Asset Managers IFSC Pvt Ltd holds authorisation as an Authorised FME (Retail). It now wishes to also manage a restricted scheme for accredited investors alongside its retail scheme. Which statement is correct?

Meridian may manage the restricted scheme under its existing Authorised FME (Retail) category, subject to the Regulations' conditions. The Retail authorisation is the broader one and covers both retail and restricted schemes. The narrower Non-Retail category cannot manage retail schemes, but this entity holds the wider one.

  1. AIt must surrender its Retail authorisation and apply as a Non-Retail FME
  2. BIt may manage restricted schemes under its existing category, subject to the applicable conditionsCorrect
  3. CIt can manage restricted schemes only through a separate group company
  4. DIt needs a fresh registration as a Registered FME (Venture Capital Scheme)

Explanation

The Retail authorisation is the wider category and covers both retail and restricted schemes, subject to the conditions in the Regulations. No surrender, group company or separate registration is required. The reverse is not true: a Non-Retail FME cannot manage retail schemes.

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