The International Financial Services Centres Authority (IFSCA) on September 27, 2024, notified regarding the incentive provided by IFSCA for filing of ESG Funds by Registered FMEs at GIFT IFSC.
The Authority is incentivising Fund Management Entities (FMEs) to establish Environmental, Social, and Governance (ESG) funds at the GIFT IFSC, in a significant step to promote sustainable finance. This move is another step in attaining the vision of GIFT IFSC becoming a global climate finance hub and is expected to encourage fund managers to focus on investments that align with responsible and sustainable business practices.
To encourage green private capital to be channelised via the fund route, IFSCA has waived the fund filing fees for the first 10 ESG funds filed by Registered FMEs at GIFT IFSC. So far, while one Registered FME, has already availed the said incentive provided by IFSCA by launching an ESG Fund it is observed that awareness regarding ESG Funds and the incentives provided by IFSCA is limited only to the Fund managers.
