Relaxations for AIFs relocating to IFSC

PUBLISHED ON: 1-7-2021

 

International Financial Services Centre Authority (“IFSCA”) has further revised the framework for Alternative Investment Funds (“AIFs”) operating in International Financial Services Centres (“IFSC”) in order to ease the relocation of AIFs established outside India to IFSC:

Requirement to maintain the continuing interest by Manager or Sponsor of AIF (as set out below) has been made voluntary for AIFs relocating to IFSC

• For Category I AIF and Category II AIF in IFSC: At least 2.5% of the corpus or USD 750,000, whichever is lower; and 
• For Category III AIFs in IFSC: At least 5% of the corpus or USD 1.5 million, whichever is lower.

Investment in Mutual Fund are permitted

• AIFs in IFSC are permitted to invest in units of schemes launched by Mutual Fund regulated in Financial Action Task Force compliant jurisdictions, including India.

The aforementioned were notified vide a circular dated June 25, 2021 (available here).