FME Regulatory Intelligence, Learning & Practice · IFSCA (Fund Management) Regulations, 2025
Permissible investments

Regulation 106

Permissible investments

IFSCA (Fund Management) Regulations, 2025No change in 2026Chapter VI · Other Fund Management Activities

Chapter VI · Other Fund Management Activities

Regulation 106 – Permissible investments
Medium importance about 3 min

Family Investment Funds & third-party management: Single-family funds and the third-party fund management framework.

1

In plain English

Sets the permissible investments for a (unlisted and listed securities, money-market instruments, debt, securitised debt, units of schemes, derivatives including commodity derivatives, LLPs, and physical assets such as real estate, bullion and art), in IFSC, India or foreign jurisdictions, to the extent the Authority specifies.

In plain English
2

The rule, in its own words

Read the exact text of Regulation 106
106. Subject to other provisions of these regulations, a Family Investment Fund may invest monies only in the following instruments or entities in IFSC, India or foreign jurisdictions in the manner and to the extent as specified by the Authority:- (a) Unlisted securities; (b) Securities listed or to be listed or traded on stock exchanges; (c) Money market instruments; (d) Debt securities; (e) Securitised debt instruments, which are either asset backed or mortgage-backed securities; (f) Units of investment schemes; (g) Derivatives including commodity derivatives; (h) Limited Liability Partnerships; (i) Physical assets such as real estate, bullion, art, etc.; or (j) Such other securities or financial product/assets or instruments as specified by the Authority.
Statutory text — Principal Regulations, 2025 (as amended to 30 January 2026), consolidated where amended. The notified Gazette text prevails. Tap a highlighted word for how it functions.
3

Exceptions and conditions

Taken from the wording of this provision — the carve-outs and conditions worth reading closely.

Subject to other provisions of these regulations, a Family Investment Fund may invest monies only in the following instruments or entities in IFSC, India or foreign jurisdictions in the manner and to the extent as specified by the Authority:-
4

What this means in practice

Compliance actions
Applies to
Family Investment Fund
Frequency
Per investment
Evidence
Investment records against the permitted list
5

Where it connects

Read alongside

6

Check yourself

Quiz Centre

Test yourself on Regulation 106

3 questions in the unified bank test this regulation. Each explains every option and cites the provision.

A Family Investment Fund may invest in which of these?
7

Your notes

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Family Investment Funds & third-party management
Regulation 106 Chapter VI · Part C Medium · about 3 min