IFSCA Approves “Platform Play” for Fund Management Entities at GIFT IFSC

In a significant stride towards enhancing the appeal and accessibility of India’s International Financial Services Centre (IFSC) at GIFT City, the International Financial Services Centres Authority (IFSCA) has approved a groundbreaking “Platform Play” model for Fund Management Entities (FMEs). This pivotal decision was made during the 24th IFSCA Authority Meeting held on June 24, 2025.

The newly approved framework for Third-Party Fund Management Services is designed to facilitate greater participation and flexibility within the IFSC’s fund management ecosystem. Under this innovative model, registered FMEs at GIFT IFSC will now be able to manage restricted schemes on behalf of third-party fund managers. Crucially, this eliminates the prior requirement for these third-party fund managers to establish a physical presence within the IFSC, thereby reducing operational overheads and streamlining market entry.

Key Conditions Under the New Framework:

While offering unprecedented flexibility, the “Platform Play” model is subject to specific conditions to ensure robust governance and financial stability:

• Additional Net Worth Requirement: FMEs opting for the “Platform Play” model must maintain an additional net worth of USD 500,000 over and above their existing net worth thresholds as stipulated under the prevailing FME regulations. This ensures that participating entities possess sufficient financial capacity to manage the increased responsibilities.
• Mandatory Principal Officer: For each scheme managed under the “Platform Play” framework, the FME is required to appoint a dedicated Principal Officer (PO). This ensures direct accountability and dedicated oversight for every scheme.
• Transition to Dedicated FME Model: To ensure scalability and appropriate regulatory oversight, if the fund corpus of a scheme managed under this model exceeds USD 50 million, it will be mandatory for the scheme to transition to a dedicated FME model. This provision is designed to encourage the establishment of a full-fledged presence as the fund grows, further solidifying the IFSC’s ecosystem.

This progressive move by the IFSCA is anticipated to significantly strengthen GIFT IFSC’s position as a globally competitive and innovation-driven fund management hub. By lowering barriers to entry and offering flexible operational models, the “Platform Play” framework is expected to attract a wider array of fund managers and schemes, fostering growth and diversification within the IFSC.

Interested in exploring or planning to set up a scheme under the Platform Play model? For further discussion, please reach out to gift@treelife.in.

About the Author

Share

• Link copied to clipboard!
  https://treelife.in/news/ifsca-approves-platform-play-for-fund-management-entities-at-gift-ifsc/
  
• 
• 
• 
• 

Dhairya Chaniyara

Senior Associate | Tax & Regulatory | dhairya.c@treelife.in

Focuses on direct tax and regulatory services with a specialization in GIFT IFSC. Brings experience from various industries, including manufacturing, FMCG, IT-ITES, and healthcare, to deliver impactful tax solutions.