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.