IFSCA has issued a Consultation Paper on Review of IFSCA (Fund Management) Regulations, 2022 to invite comments of following proposals:
- Proposals aimed at enhancing Ease of Doing Business (EoDB): In IFSCA’s interactions with the industry participants as well as the comments received as a response to the Press Release dated October 10, 2023, some of the areas have been identified where the FMEs in IFSC are likely to experience operational hassles or where there is a potential to reduce the regulatory thresholds in line with the practices prevalent in other jurisdictions. Such proposals have been categorized as ‘EoDB’. Substantial proposals in the consultation paper are EoDB oriented and aimed towards bringing in efficiency by streamlining processes/timelines, reducing operational issues and the compliance burden.
- Proposals aimed at introducing additional Safeguards: Given the notable pace of growth of fund management activities in IFSC, it is imperative that a healthy culture of compliance is nurtured amongst the FMEs by, inter alia, ensuring adequate regulatory safeguards. These proposals are expected to lead to better protection of the investors in IFSC funds and orderly growth of business activities in IFSC. Such proposals have been categorized as ‘Safeguard’. A few EoDB proposal may have certain conditions attached towards Safeguards so as to minimize or avoid the potential misuse.
c. Proposals aimed to provide Clarifications: The last set of the proposals are aimed to address drafting related issues, enhance readability of the FM Regulations or provide clarity of the regulatory intent. Such proposals have been categorized as ‘Clarification’.
Comments may be sent by email to Mr. Aditya Sarda, Deputy General Manager, IFSCA at aditya.sarda@ifsca.gov.in with a copy to Mr. Pavan Shah, General Manager, IFSCA at pavan.shah@ifsca.gov.in latest by August 26, 2024.
