Framework for SPV for Co-investment and Leverage Transactions under IFSCA (Fund Management) Regulations, 2022

Act Name/Rule Name: IFSCA (Fund Management) Regulations, 2022

Type of Document: Consultation Paper

Date: 09th January 2025

This consultation paper introduces the framework for the creation of Special Purpose Vehicles (SPVs) under the IFSCA (Fund Management) Regulations, 2022. The primary objective is to promote ease of doing business and facilitate the growth of the alternative investment industry in the International Financial Services Centre (IFSC).

  • SPVs can be formed by FMEs registered with IFSCA with a controlling scheme, allowing co-investment and leverage transactions.
  • The structure of the SPV includes specific requirements regarding ownership, eligible investors, and permissible investments.
  • Leverage at the SPV level is permissible within the limits defined by the controlling scheme’s Private Placement Memorandum (PPM).
  • The paper also provides details on filing requirements, governance, reporting, and KYC procedures for SPVs under this framework.

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