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

Orchid Fund plans a scheme in GIFT IFSC that will pool money from sophisticated investors and invest mainly in unlisted equity of early-stage start-ups with high growth potential. Under the IFSCA fund management framework, how is this scheme best classified?

It is a venture capital scheme. Such a scheme pools funds from sophisticated investors and invests mainly in unlisted equity of early-stage, high-growth start-ups. A retail scheme serves the general public with diversified liquid holdings, and money market or listed debt strategies do not match unlisted start-up equity.

  1. ARetail scheme
  2. BVenture capital schemeCorrect
  3. CExchange traded money market scheme
  4. DListed debt scheme

Explanation

A venture capital scheme pools capital for investment mainly in unlisted securities of early-stage, high-growth businesses. A retail scheme is aimed at the general public and typically holds liquid, diversified assets. Money market and listed debt options do not fit an unlisted-equity start-up strategy.

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