IFSCA’s framework will facilitate Co-investment by existing schemes, paving the way for existing schemes to create special schemes with or without leverage, through a Special Purpose Vehicle.

The fund management ecosystem at the GIFT IFSC has become very vibrant since the notification of the Fund Management Regulations in April 2022 having more than 160 Fund Management Entities and 250 plus schemes registered at GIFT IFSC. The recently notified Fund Management Regulations, 2025 has added more vibrancy to it, while also promoting ease of doing business at the GIFT IFSC. 

The Fund Management Regulations, 2025 permits co-investment, with or without leverage, through a Special Purpose Vehicle (SPV) (also known in Industry parlance as a Co-Investment Vehicle), herein after referred to as the Special Scheme. To operationalise this, the IFSCA has brought about a framework that will facilitate Co-investment by venture capital schemes and restricted schemes, paving the way for them to create special schemes to undertake the investments much faster. 

The framework defines the structure, objective and nature of such special schemes. One salient feature of the framework is that these special schemes can make investments even before intimating the Authority. Moreover, the term sheet of the special scheme can be filed with authority within 45 days from the date of investments, thus making the process of investment easier and faster. 

The framework is expected to strengthen the GIFT IFSC as global hub of innovation in fund management and IFSCA’s commitment to promote ease of doing business at IFSCs.