Relaxations from certain regulatory requirements in case of relocation of an offshore Fund to International Financial Services Centre (IFSC)

International Financial Services Centres Authority (IFSCA) upon receiving representations from various stakeholders has vide circular No. 81/IFSCA/AIFs/2020-21/03 dated June 25, 2021 amended the norms pertaining to relocation of funds outside India to IFSC. The amendments are summarised as follows:  

Continuing interest by the Manager or Sponsor in the AIF:

As per the existing framework for AIFs in IFSC, Manager or Sponsor of the AIFs has to have continuing interest in AIFs lower of 2.5% of the total corpus of Fund or USD 750,000 in case of Category I/II AIF and lower of the total corpus of Fund or USD 1,500,000 in case of Category III AIF.

Now vide this circular the above-mentioned provision has been made voluntary for AIFs relocating from outside India to IFSC.

Investment in Mutual Fund:

An AIF in IFSC is permitted to invest in units of schemes launched by mutual fund regulated in FATF compliant jurisdictions including India.

The Circular Can be accessed here.

Contact us for a Solution

Contact us for more information about our services and how we can help


As per the rules of the Bar Council of India, we are not permitted to advertise or solicit work. By accessing and browsing through this website, all users agree and acknowledge that the content of this website is for informational purposes only and that there has been no form of solicitation, advertisement or inducement by NovoJuris Legal or its members, in any form. No information provided on this website should be construed as legal advice and NovoJuris Legal shall not be liable for consequences of any action taken by relying on the information provided on this website.