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The International Financial Services Centres Authority restricts Fund Management Entities from launching new schemes and onboarding new clients when their net worth falls below the specified level. The entity stops these actions until the entity restores the net worth. This circular applies to all Fund Management Entities in International Financial Services Centres and takes effect immediately.
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[Image omitted. See the official document.]
CIRCULAR
F. No. IFSCA-IF-10PR/1/2023-Capital Markets/2
February 16, 2024
To,
All Fund Management Entities in International Financial Services Centres (IFSCs)
Dear Sir / Madam,
Sub: Maintenance of net worth by Fund Management Entity
Reference is drawn to regulation 8 of the IFSCA (Fund Management) Regulations, 2022 ('Fund Management Regulations'), which mandates the Fund Management Entity (FME) to maintain the specified net worth at all times.
Without prejudice to IFSCA's power to take action for non-compliance with the aforesaid regulation, in case the net worth of any FME falls below the specified net worth, such FME shall not–
till the time the net-worth is restored.
A copy of this circular is available on the website of International Financial Services Centres Authority at www.ifsca.gov.in.
Yours faithfully
Sd/-
Pavan Shah General Manager Division of Investment Funds – I and New Products & Services Capital Markets Department Email: pavan.shah@ifsca.gov.in Tel: +91-79-61809844
