IFSCA Approves Third-Party Fund Management Services Framework

BACKGROUND

• The International Financial Services Centres Authority (‘IFSCA'), in its meeting held on June 24, 2025 has, inter alia, approved pivotal amendments to the IFSCA (Fund Management) Regulations, 2025, facilitating the introduction of Third-Party Fund Management Services, commonly referred to as the “Platform Play” model, within IFSC

OVERVIEW AND KEY FEATURES OF THE APPROVED FRAMEWORK

• Registered Fund Management Entities (‘FMEs') in IFSC can now launch and manage Restricted Schemes on behalf of third-party fund managers (overseas or domestic), without requiring the latter to establish a physical presence in the IFSC.
• In order to ensure adequate governance and investor protection, the framework mandates the following:
  • Cap of USD 50 million corpus per scheme under such arrangement