The International Financial Services Centres Authority (IFSCA) on October 29, 2024, issued clarifications in relation to Investment Restrictions on Retail Schemes set up in IFSCs.
To develop the ecosystem for retail schemes in IFSC, and to remove difficulties in the application of regulation 47 of the Regulations in relation to fund of fund schemes, the Authority hereby clarifies that in case of investment by retail schemes in unlisted securities issued by an investment fund which is open-ended in nature and is regulated by the concerned regulatory authority in its home jurisdiction and is permitted for offering to retail investors in its home jurisdiction, the following ceilings/limits shall not apply -
• The ceiling of 15% investment of the total AUM of the scheme in unlisted securities in the case of an open-ended scheme, specified under sub-regulation (1) of regulation 47;
• The minimum investment amount of USD 10,000 for close-ended schemes investing more than 15% of AUM in unlisted securities, specified under sub regulation (2) of regulation 47;
• The ceiling of 50% investment of AUM in unlisted securities in case of a close ended scheme, specified under proviso to sub-regulation (2) of regulation 47; and
• The ceiling of 25% investments of AUM in the associates, specified under sub regulation (5) of regulation 47.
[Circular No. IFSCA-IF-10PR/1/2023-Capital Markets/5]
