Comparison tool
Compare the frameworks
FME categories side by side, AIF categories side by side, and the GIFT IFSC and SEBI regimes against each other. Every row cites its source.
GIFT IFSC FME and SEBI AIF
| Aspect | SEBI — AIFRegulated by SEBI (Alternative Investment Funds) Regulations, 2012 and SEBI Master Circular | GIFT IFSC — FMERegulated by IFSCA (Fund Management) Regulations, 2025 and IFSCA circulars |
|---|---|---|
| Rulebook | SEBI (Alternative Investment Funds) Regulations, 2012 | IFSCA (Fund Management) Regulations, 2025 |
| What is registered | The fund registers as an AIF in a category, then launches schemes by filing a placement memorandum | The manager registers as an FME, then files schemes under it |
| Retail investors | Not possible: funds are raised only by private placement (Reg 10(g)) | Possible: a Registered FME (Retail) can run retail schemes open to all investors (at least 20 investors, none above 25%) |
| Minimum scheme size | ₹20 crore (₹5 crore for a social impact fund) | USD 3 million for VC and restricted schemes (VC corpus capped at USD 200 million) |
| Minimum investment | ₹1 crore; ₹25 lakh for insiders; none for accredited investors | VC USD 250,000; restricted USD 150,000; lower for insiders; none for accredited investors |
| Maximum investors | 1,000, with accredited investors not counted | VC 50; restricted 1,000 |
| Manager's own contribution | Category I and II: lower of 2.5% or ₹5 crore; Category III: lower of 5% or ₹10 crore | VC and close-ended restricted: lower of 2.5% or USD 750,000; open-ended restricted: lower of 5% or USD 1.5 million |
| Launch filing | Through a merchant banker at least 10 working days before launch; SEBI's comments must be complied with; Accredited Investors only funds are outside this route | VC and restricted: green channel — launch once IFSCA takes the PPM on record |
| Minimum tenure (close-ended) | Category I and II at least 3 years | VC at least 3 years; restricted at least 1 year |
| Tenure extension | Up to 2 years with two-thirds of unit holders by value (5 years for an Accredited Investors only fund) | Up to 2 years with two-thirds of investors by value |
| Investing outside India | Overseas investment is subject to RBI and SEBI conditions (Reg 15(1)(a)) and SEBI's overseas limit allocation (Master Circular, Chapter 5) | Schemes are set up in IFSC for cross-border investment |
| Where the team sits | No IFSC requirement | KMPs based in IFSC; investment decisions taken from the IFSC office |
Sources — IFSC: Regs 3, 8, 19–23, 28, 31–35, 40, 44, 7 of the IFSCA (FM) Regulations, 2025. SEBI: Regs 10, 12, 13, 15 of the SEBI (AIF) Regulations, 2012 and the Master Circular for AIFs. IFSC figures are for VC and restricted schemes; retail and other schemes have their own rules.
This is a learning and compliance-preparation tool. Plain-English readings, practical notes, 'what changed' summaries, the timeline and calculators are the portal's interpretation and do not replace professional advice or the notified Gazette text of the IFSCA (Fund Management) Regulations, 2025 and its amendments.