IFSCA vide its circular no. IFSCA-AIF/32/2024-Capital Markets dated April 5, 2024 amended regulation 31(2) of the International Financial Services Centers Authority (Fund Management) Regulations, 2022 (“FM Regulations”). The FM Regulations is brought in with an intention of facilitating ease of doing business in fund management ecosystem at the IFSC for all the schemes and funds to be launched under chapter III (except Part C: retail schemes).
Accordingly, as per new FM Regulations, fund management entity (“FME”) shall submit the private placement memorandum (“PPM”) along with other documents ensuring minimum disclosures and other requirements to the authority. After filing these documents along with the disclosures and complying with other requirements stipulated in this circular FMEs may launch the respective schemes. Further, it is stated that IFSCA will also, in due course establish a web-portal for filing of scheme documents before an offer is made.
The Scheme or Fund documents are required to be submitted with the Authority in the Application Form specified in Annex- A hereto.
For submitting the application, FME shall ensure that PPM of each scheme or fund shall contains all the details that are prescribed in the circular to be filed in. Further, the FME shall ensure that the Cover Page of the PPM, for each Scheme or Fund, prominently displays that “This PPM has been prepared in accordance with the IFSCA (Fund Management) Regulations, 2022, and subsidiary directions issued thereunder. The PPM has been submitted to the Authority only for the purpose of record.”
It has been prescribed that in order to extend the validity of the placement memorandum beyond 6 months, refilling of documents with the authority may be preferred by filling the applicable fees. The scheme filing fees can be remitted in US Dollars at the time of filing the scheme documents with the Authority.
The FMEs shall also submit all the necessary documents as specified in Annex-B hereto along with the scheme application. On receipt of the application, the Authority will issue a Letter of Acknowledgment that the same has been taken on record.
For detailed discussion on above circular, please feel free to contact devadhhantu@devadhaantu.in
