India’s vision to establish a globally competitive financial hub is rapidly materializing through the tremendous growth of the fund management ecosystem at GIFT-IFSC. At the center of this transformation is the International Financial Services Centres Authority (IFSCA), which has taken consistent steps to build a world-class regulatory and business environment tailored for global capital, innovation, and investor trust.
Since the launch of the IFSCA (Fund Management) Regulations in 2022, the fund management ecosystem at GIFT-IFSC has seen a strong upward trajectory. These regulations laid a comprehensive foundation for fund managers, offering a unified, globally benchmarked framework. Taking feedback from industry participants, the IFSCA refined and updated these regulations in 2025, reflecting its commitment to a progressive and consultative regulatory approach.
Regulatory Milestones Driving Growth
IFSCA has rolled out a series of reforms to broaden access, simplify compliance, and enhance market depth:
- Angel Schemes framework (2022) encouraged early-stage capital investments.
- Sovereign Wealth Fund exemptions facilitated easier participation from major international capital pools.
- The Accredited Investors framework (2024) enabled seamless investments from sophisticated investors globally.
- A collaborative mechanism with SEBI now enables 100% NRI/OCI participation in IFSC-based funds via FPIs.
- The 2025 revision of Fund Management Regulations brought more clarity, enhanced investor protection, and greater ease of doing business.
- Recent frameworks now support co-investments through SPVs and third-party fund management services, expanding flexibility and operational depth.
- A proposed Variable Capital Companies (VCC) law amendment, currently with the Ministry of Finance, aims to enhance fund structuring efficiency further.
These reforms reflect IFSCA’s philosophy of aligning with global best practices, prioritizing investor protection, and facilitating business growth through continuous dialogue with the industry.
Impressive Growth Numbers
Backed by a stable regulatory regime and India’s strong economic fundamentals, the fund management sector at GIFT-IFSC is thriving:
- 177 Fund Management Entities (FMEs) registered as of June 30, 2025.
- 272 schemes launched, with cumulative commitments touching USD 22.11 billion – a 40.5% QoQ growth.
- Funds raised total USD 10.5 billion, with a 31.9% QoQ increase.
- Investments made stand at USD 11.27 billion (INR 95,000+ crore), with over 85% directed towards India, echoing the “onshore the offshore” philosophy.
- Over 3,500 investors from 60+ countries have invested in restricted schemes, highlighting rising global trust.
- The approval of two retail schemes marks a pivotal moment in expanding the retail fund landscape within IFSC.
Supervision with Growth in Mind
As growth accelerates, IFSCA has put in place strong supervisory mechanisms, including quarterly off-site reporting and on-site inspections, to ensure compliance and robust governance among FMEs. The authority has not hesitated to take regulatory action when needed, safeguarding investor interests while maintaining a conducive environment for business.