IFSCA Releases New Fee Structure for Entities Operating in GIFT IFSC (Effective FY 2026–27)
The International Financial Services Centres Authority (IFSCA) has issued a new circular dated 2 March 2026 introducing a comprehensive fee structure for entities operating in GIFT IFSC.
The circular consolidates multiple earlier notifications and defines application fees, registration fees, recurring fees, and activity-based charges for all regulated entities including Fund Management Entities (FMEs) and Alternative Investment Funds (AIFs).
For fund managers and AIF sponsors planning to establish funds in GIFT IFSC, this circular clarifies the cost structure for fund setup, scheme filings, and ongoing regulatory fees.
Fee Structure for Fund Management Entities (FMEs)
Fund Management Entities registered in IFSC are required to pay the following fees.
Application & Registration Fees
All FMEs are also required to pay an annual recurring fee of USD 3,000 after registration. This fee becomes payable every financial year and must be paid between 1 April and 30 April.
Processing Fees Applicable to Fund Managers
IFSCA has also specified processing fees for certain regulatory actions.
For Fund Management Entities modifying scheme documents, a processing fee of USD 500 will apply.
Penalties and Late Fees
The circular introduces clear penalties for delays.
Late Payment of Fees
If fees are not paid within the prescribed timeline, a simple interest of 0.75% per month will apply.
Delay in Regulatory Reporting
If a regulated entity fails to submit periodic reports or returns on time, a penalty of USD 100 per month per report may be imposed.
Informal Regulatory Guidance
Entities seeking informal regulatory clarification from IFSCA may apply under the Informal Guidance Scheme.
Fee for such requests:
USD 1,000 per application
If the request is not maintainable, 75% of the fee is refunded.
Payment of Fees
Fees must generally be paid in USD to the IFSCA designated bank account.
However, Indian applicants may pay application and registration fees in INR, converted using the FBIL reference USD-INR rate on the date of remittance.
Effective Date
The revised fee structure will apply from Financial Year 2026-27 onwards.
The circular also supersedes earlier fee circulars issued in 2025.
What This Means for AIF Managers
The new circular provides greater clarity on the cost of operating funds in IFSC.
For venture capital and private equity managers considering GIFT IFSC as a fund domicile, the framework now clearly defines:
Cost of establishing a Fund Management Entity
Scheme filing costs for AIFs
Ongoing annual regulatory fees
Penalties for delayed compliance
This allows fund managers to plan regulatory and operational costs more accurately when launching funds in the IFSC ecosystem.