IFSCA Bulletin Q3 FY 2025–26: What It Means for AIFs and Fund Managers
The IFSCA Bulletin for Q3 FY 2025–26 (Oct–Dec 2025) highlights the rapid maturation of GIFT IFSC as a global fund management and financial services hub, with meaningful implications for AIFs, fund managers, and offshore investment structures
Strong Growth in Fund Management Ecosystem
The number of Fund Management Entities (FMEs) in IFSC rose to 202, managing 313 schemes, reflecting sustained interest from global and domestic managers.
Non-retail fund activity continued to scale, with cumulative commitments reaching USD 32.13 billion and funds raised at USD 17.34 billion, indicating deepening institutional participation across Category I, II, and III AIF structures.
Investor participation also expanded sharply:
Category I & II AIF investors: 1,503
Category III AIF investors: 3,257
VC & Angel schemes: 722 investors
This growth reinforces GIFT IFSC’s positioning as a preferred jurisdiction for global capital aggregation and India-focused strategies.
Key Regulatory Reliefs for AIF Managers
IFSCA approved and notified important amendments to the Fund Management Regulations, 2025, focused on ease of doing business:
Relaxed eligibility norms for Key Managerial Personnel (KMPs) via certification-based routes
Greater flexibility in Placement Memorandum (PPM) validity, including multiple extensions
One-time window to regularise expired PPMs
24-month transition period for appointment of IFSCA-registered custodians
These changes significantly reduce friction for fund launches, restructuring, and migration to IFSC.
Broader IFSC Momentum Supports Fund Strategies
Beyond fund management, IFSC recorded:
1,100 total registrations/authorisations, underscoring ecosystem scale
Strong growth in trade finance, capital markets, insurance, and aircraft leasing
Rising ESG-linked debt listings and sustainable finance activity
This diversified financial infrastructure strengthens IFSC’s appeal for multi-strategy AIFs, private credit funds, venture funds, and feeder-master structures.
Bottom Line for AIF Sponsors
The Q3 Bulletin confirms that GIFT IFSC is no longer a policy experiment but a mature, scalable jurisdiction for AIFs. With regulatory flexibility, growing investor depth, and strong cross-border connectivity, IFSC is increasingly central to India-linked global fund strategies.