Filing of Placement Memorandum
Regulation 19
Filing of Placement Memorandum
IFSCA (Fund Management) Regulations, 2025Amended in 2026Chapter III · Schemes for Fund Management
Chapter III · Schemes for Fund Management
Regulation 19 – Filing of Placement Memorandum
Amended 2026 High importance about 3 min
Venture Capital schemes: Structure, eligible investors, permissible investments and the FME's own contribution for VC schemes.
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In plain English
VC schemes are launched via private placement by filing a (with fee) under a 'green channel' — the opens for subscription immediately on 's communication, without waiting for full review completion.
In plain English
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The rule, in its own words
Read the exact text of Regulation 19
19. (1) A FME may launch Venture Capital schemes through private placement by filing a placement memorandum with the Authority along with the applicable fee, in the manner as may be specified by the Authority. (2) The filing of scheme documents for such Venture Capital schemes shall be under green channel whereby the schemes filed shall be open for subscription by investors immediately upon communication from the Authority that the placement memorandum has been taken on record: Provided that Authority may, at any stage, offer its comments which shall suitably be incorporated by the FME in the placement memorandum. Explanation.- For the purpose of the Income Tax Act, 1961, the communication r…
Show the full text
19. (1) A FME may launch Venture Capital schemes through private placement by filing a placement memorandum with the Authority along with the applicable fee, in the manner as may be specified by the Authority. (2) The filing of scheme documents for such Venture Capital schemes shall be under green channel whereby the schemes filed shall be open for subscription by investors immediately upon communication from the Authority that the placement memorandum has been taken on record: Provided that Authority may, at any stage, offer its comments which shall suitably be incorporated by the FME in the placement memorandum. Explanation.- For the purpose of the Income Tax Act, 1961, the communication received by the FME from the Authority that the placement memorandum has been taken on record, shall be construed as Certificate of Registration. (3) The placement memorandum for launch of the Venture Capital scheme shall be valid for twelve (12) months from the date of communication from the Authority to the FME that the placement memorandum has been taken on record, during which period the FME shall declare the first close of the scheme by achieving at least the minimum size of corpus as specified under sub-regulation (1) of regulation 23: 4 [Provided that if a FME fails to achieve the minimum size of corpus, as specified under sub regulation (1) of regulation 23, within the specified time period, it shall have the option to extend the validity of the placement memorandum, wherein each such extension shall be for a period of six (6) months starting from the day after the expiry of the existing validity of the placement memorandum, by filing an application at such time when the placement memorandum is still valid, accompanied by a fee equal to – i) for the first extension, twenty-five per cent. (25%) of the applicable fee for filing of a fresh scheme, as may be prevalent at the time of such extension; and ii) for each subsequent extension, fifty per cent. (50%) of the applicable fee for filing of a fresh scheme, as may be prevalent at the time of such extension] (4) The FME shall ensure that any material changes from the information provided in the placement memorandum are immediately informed to 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.
Amendment history (1 note)
Footnotes from the consolidated text. They record earlier wording and are not operative law.
- 4 Substituted by the International Financial Services Centres Authority (Fund Management) (Amendment) Regulations, 2026, w.e.f. January 30, 2026. Prior to the substitution, it read as- “Provided that if a FME fails to achieve the minimum size of corpus, as specified under sub-regulation (1) of regulation 23, within the specified time period, it shall have the one-time option to extend the validity of the placement memorandum for a further period of six (6) months by paying fifty per cent. (50%) of the fee as applicable for filing of a fresh scheme.”
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Exceptions and conditions
Taken from the wording of this provision — the carve-outs and conditions worth reading closely.
(2) The filing of scheme documents for such Venture Capital schemes shall be under green channel whereby the schemes filed shall be open for subscription by investors immediately upon communication from the Authority that the placement memorandum has been taken on record: Provided that Authority may, at any stage, offer its comments which shall suitably be incorporated by the FME in the placement memorandum
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What this means in practice
Compliance actions
- Applies to
- Venture Capital scheme
- Frequency
- Per scheme launch
- Trigger
- Scheme launch
- Evidence
- Filed placement memorandum; Authority communication opening the scheme for subscription
Common mistake
Assuming the green channel means no scrutiny — the Authority can still require changes after the scheme opens.5
Where it connects
Refers to / depends on
Read alongside
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Check yourself
Quiz Centre
Test yourself on Regulation 19
15 questions in the unified bank test this regulation. Each explains every option and cites the provision.
How is a Venture Capital scheme launched?
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