Regulation 131: Winding up of the Scheme

1

In plain English

A may be wound up on tenure expiry, on a 75%-by-value investor resolution, or (inserted by the January 2026 amendment) where the FME raised funds but failed to reach minimum within validity and did not extend, or where no investors were onboarded and no funds collected and the FME chooses to wind up. The Authority may also direct winding up, merger or transfer to another FME.

2

The rule, in its own words

Read the exact text of Regulation 131

131. (1) A scheme of the FME may be wound up:- (a) When the tenure of the scheme, as mentioned in the placement memorandum / offer document, is over; (b) If seventy-five per cent. (75%) of the investors, by value of their investment in the scheme, pass a resolution at a meeting of investors that the scheme be wound up. 6 [(c) If the FME has raised funds from the investors under the scheme but fails to achieve the minimum corpus during the validity or extended validity of the placement memorandum or offer 6 Inserted by the International Financial Services Centres Authority (Fund Management) (Amendment) Regulations, 2026 w.e.f. January 30, 2026 document, as applicable, and the FME has not exte…

Show the full text

131. (1) A scheme of the FME may be wound up:- (a) When the tenure of the scheme, as mentioned in the placement memorandum / offer document, is over; (b) If seventy-five per cent. (75%) of the investors, by value of their investment in the scheme, pass a resolution at a meeting of investors that the scheme be wound up. 6 [(c) If the FME has raised funds from the investors under the scheme but fails to achieve the minimum corpus during the validity or extended validity of the placement memorandum or offer 6 Inserted by the International Financial Services Centres Authority (Fund Management) (Amendment) Regulations, 2026 w.e.f. January 30, 2026 document, as applicable, and the FME has not extended the validity thereof by making the requisite filing and payment of fee to the Authority. (d) When no investors have been onboarded into the scheme and no funds have been collected and the FME voluntarily desires to wind up the same.] (2) The Authority, in the interest of investors and for orderly development of the financial market, may direct a FME to:- (a) wind up a scheme, subject to such conditions as deemed appropriate; (b) merge certain schemes; or (c) manage schemes of other FMEs.

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.

(a) wind up a scheme, subject to such conditions as deemed appropriate

4

What this means in practice

Compliance actions

Apply the correct winding-up ground and document the investor resolution or failure-to-reach-corpus position.

Applies to: All schemes
Frequency: Event-driven
Evidence: Winding-up resolution / corpus-milestone records

5

Where it connects

Refers to / depends on

Referred to by

Read alongside

6

Check yourself

Quiz Centre

Test yourself on Regulation 131

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

Which investor threshold allows winding up a scheme by resolution?

Winding up of the Scheme