Skip to content

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

Trident Funds' restricted scheme in GIFT IFSC has 998 investors. It now receives applications from three more investors, each investing well above the minimum. Assume the cap on investors in a restricted scheme is 1,000. What should Trident do?

Trident can admit at most two of the three applicants. The restricted scheme investor cap of 1,000 counts every investor regardless of ticket size or accredited status. With 998 investors, adding three would reach 1,001 and breach the cap, whereas adding two reaches exactly 1,000.

  1. AAdmit all three, because the cap applies only to non-accredited investors
  2. BAdmit all three and report the excess to IFSCA after one year
  3. CAdmit all three if the investors are accredited
  4. DAdmit at most two of the three, because admitting all three would take the count to 1,001Correct

Explanation

998 plus 3 gives 1,001, which exceeds the cap of 1,000. The cap counts every investor, and an investor's size or accredited status does not remove them from the count. Only two more investors can be admitted, taking the total to exactly 1,000.

Did you get it right without looking?

One question tells you little. A timed set on Fund Management Services shows your real accuracy, how long you take and where you lose marks.

Practise Fund Management ServicesFree diagnostic mock

More Fund Management Services questions