FME Regulatory Intelligence, Learning & Practice · IFSCA (Fund Management) Regulations, 2025
Restrictions on business activities of the FME

Regulation 137

Restrictions on business activities of the FME

IFSCA (Fund Management) Regulations, 2025No change in 2026Chapter VIII · General Obligations and Responsibilities

Chapter VIII · General Obligations and Responsibilities

Regulation 137 – Restrictions on business activities of the FME
High importance about 3 min

Ongoing obligations & governance: Conduct, reporting, risk, custody, change in control and the day-to-day compliance load.

1

In plain English

A FME cannot undertake business activities beyond those permitted without the Authority's prior approval. A branch must inform the Authority within 15 days of any home-regulator approval for out-of-IFSC activity, and prior intimation is required before opening a marketing/service branch or representative office in another jurisdiction.

In plain English
2

The rule, in its own words

Read the exact text of Regulation 137
137. The FME shall not undertake any business activities other than as specified under these regulations, without prior approval of the Authority: Provided that a FME operating in the form of branch in an IFSC shall inform the Authority within fifteen (15) days regarding any approval obtained from the sectoral regulator in its principal place of operations, if the activity it intends to conduct outside IFSC requires such specific approval. Provided further that FME intending to open a branch or representative office in other jurisdictions for the purpose of marketing their offerings and client service shall give prior intimation to the Authority with the details regarding such branch or representative office.
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.

Provided that a FME operating in the form of branch in an IFSC shall inform the Authority within fifteen (15) days regarding any approval obtained from the sectoral regulator in its principal place of operations, if the activity it intends to conduct outside IFSC requires such specific approval
Provided further that FME intending to open a branch or representative office in other jurisdictions for the purpose of marketing their offerings and client service shall give prior intimation to the Authority with the details regarding such branch or representative office.
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What this means in practice

Compliance actions
Applies to
All FME categories
Frequency
Event-driven
Timing
Branch intimation within 15 days
Evidence
Approval/intimation records
5

Where it connects

Read alongside

6

Check yourself

Quiz Centre

Test yourself on Regulation 137

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

A branch FME must inform the Authority of a home-regulator approval for out-of-IFSC activity within:
7

Your notes

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Ongoing obligations & governance
Regulation 137 Chapter VIII High · about 3 min