Eligibility Conditions
Regulation 104
Eligibility Conditions
IFSCA (Fund Management) Regulations, 2025Amended in 2026Chapter VI · Other Fund Management Activities
Chapter VI · Other Fund Management Activities
Regulation 104 – Eligibility Conditions
Amended 2026 High importance about 4 min
Family Investment Funds & third-party management: Single-family funds and the third-party fund management framework.
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In plain English
Family Investment Funds are exempt from the standard FME legal-form (Reg 5) and net-worth (Reg 8) requirements, must reach USD 10 million minimum investment within 3 years, and may add investment vehicles that are aggregated for that USD 10 million test; as amended, the Authority formally records actions taken on the Reg 30 AIF-category classification.
In plain English
USD 10 million within 3 years of registration
FIF — minimum investment
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The rule, in its own words
Read the exact text of Regulation 104
104. (1) A Family Investment Fund may be set up in the IFSC as a Company, Trust (only in the form of Contributory Trust) or Limited Liability Partnership or any other form as may be permitted by the Authority from time to time. Provided where the contributory vehicle is in the form of a Trust, it shall ensure that, - (a) the beneficiaries are identifiable based on the provisions of the Trust deed, though not specifically named in the Trust deed; (b) the share of each beneficiary should be capable of being determined based on the provisions mentioned in the trust deed and shall not be at the discretion of the trustee; and (c) further contributors to the Trust, in addition to the initial contr…
Show the full text
104. (1) A Family Investment Fund may be set up in the IFSC as a Company, Trust (only in the form of Contributory Trust) or Limited Liability Partnership or any other form as may be permitted by the Authority from time to time. Provided where the contributory vehicle is in the form of a Trust, it shall ensure that, - (a) the beneficiaries are identifiable based on the provisions of the Trust deed, though not specifically named in the Trust deed; (b) the share of each beneficiary should be capable of being determined based on the provisions mentioned in the trust deed and shall not be at the discretion of the trustee; and (c) further contributors to the Trust, in addition to the initial contributors, shall not make the existing beneficiaries unknown or their shares indeterminate. (2) The requirements under regulations 5 and 8 pertaining to Legal form and Net-worth of a FME respectively, shall not be applicable to a Family Investment Fund. (3) A Family Investment Fund should have and maintain a minimum investment of USD 10 million within a period of three (3) years from the date of obtaining certificate of registration. (4) The Family Investment Fund may either be open-ended or close-ended, depending upon the requirements of the family. (5) A Family Investment Fund may set up additional investment vehicles after filing documents for such vehicles with the Authority and payment of applicable fee as specified by the Authority. Explanation I.- Such additional investment vehicles in the form of companies, limited liability partnerships, trusts or any other form as may be specified by the Authority, shall be considered in conjunction for the purpose of meeting the condition specified under sub-regulation (3). Explanation II. - The Family Investment Fund or the investment vehicle may be construed as Category I Alternative Investment Fund, Category II Alternative Investment Fund or Category III Alternative Investment Fund depending on the investment strategy adopted in accordance with regulation 30 45[, and shall accordingly be taken on record by the Authority.]
Statutory text — Principal Regulations, 2025, consolidated as amended up to 10 September 2026 (including the Second Amendment, 2026). The notified Gazette text prevails. Tap a highlighted word for how it functions.
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Exceptions and conditions
Taken from the wording of this provision — the carve-outs and conditions worth reading closely.
(2) The requirements under regulations 5 and 8 pertaining to Legal form and Net-worth of a FME respectively, shall not be applicable to a Family Investment Fund
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What this means in practice
Compliance actions
- Applies to
- Family Investment Fund
- Frequency
- Ongoing (3-year milestone); per new vehicle
- Evidence
- Investment tracking across all FIF vehicles; Additional-vehicle filing records
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What changed in 2026
Explanation II to Reg 104(5) now adds that action taken in pursuance of Reg 30 shall accordingly be taken on record by the Authority.
Practical effect
Clarifies that the Authority formally records actions taken under Reg 30 in this context.What to do
No new FME obligation — awareness item for record-keeping expectations.6
The numbers that matter
| Requirement | Threshold | On crossing |
|---|---|---|
| FIF — minimum investment | USD 10 million within 3 years of registration | Aggregate across all vehicles |
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Where it connects
Read alongside
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Check yourself
Quiz Centre
Test yourself on Regulation 104
13 questions in the unified bank test this regulation. Each explains every option and cites the provision.
A Family Investment Fund must reach what minimum investment, and by when?
Which two FME requirements are switched off for a Family Investment Fund?
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Your notes
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Family Investment Funds & third-party management