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Corporate Laws Central Ministry of Finance International Financial Services Centres Authority Act, 2019

Transition to IFSCA (Fund Management) Regulations, 2025

08-Apr-2025 | F. No. IFSCA-IF-10PR/1/2023-Capital Markets/7

IFSCA has issued a circular regarding Transition to IFSCA (Fund Management) Regulations, 2025 effective from 08th April, 2025. According to regulation 19 and regulation 32 of the IFSCA (Fund Management) Regulation 2025, the validity period of the private placement memorandum (PPM) for Venture Capital Schemes and Restricted Schemes is 12 (twelve) months which was earlier 6 months in IFSCA (Fund Management) Regulations, 2022 and minimum corpus requirement for various scheme was reduced to USD 3 million against USD 5 Million in IFSCA (Fund Management) Regulations, 2022. By virtue of this circular, it is notified that the Venture Capital Schemes and Restricted Schemes filed under the FM Regulations, 2022 will be able to launch under the new regulatory regime, if i) The scheme was taken on record as specified during the 6 (six) months period ending on February 19, 2025. or ii) The scheme had taken approval regarding extension from the authority of the validity of their PPM and such extended tenure ends on or after February 19, 2025 Further, a one-time opportunity is being offered to the Fund Management Entities ("FMEs") to seek an extension of the PPM of Venture Capital Schemes and Restricted Schemes whose validity has expired before February 19, 2025, subject to terms and conditions specified. Kindly refer to the attached document for more information.

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