Co-investment and Leverage
Regulation 29
Co-investment and Leverage
IFSCA (Fund Management) Regulations, 2025Amended in 2026Chapter III · Schemes for Fund Management
Chapter III · Schemes for Fund Management
Regulation 29 – Co-investment and Leverage
Amended 2026 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 may co-invest via an SPV (per an Authority framework) or a segregated /separate unit class, provided segregated-portfolio investments are on terms no more favourable than the main 's.
In plain English
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The rule, in its own words
Read the exact text of Regulation 29
29. (1) A Venture Capital scheme may co-invest in permissible investments under sub-regulation (1) of regulation 22 either through a special purpose vehicle (SPV) in accordance with the framework specified by the Authority or through a segregated portfolio by issuing a separate class of units. (2) The FME shall ensure that:- (a) The investments by such segregated portfolios shall, in no circumstances, be on terms more favourable than those offered to the common portfolio of the Venture Capital scheme; and (b) Appropriate disclosures have been made in the placement memorandum regarding creation of segregated portfolio. (3) A SPV mentioned in sub-regulation (1) may undertake leverage as disclosed in the placement memorandum. PART B: RESTRICTED SCHEMES (NON-RETAIL SCHEMES)
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.
- 15 Substituted by the International Financial Services Centres Authority (Fund Management) (Second Amendment) Regulations, 2026, w.e.f. September 10, 2026. Prior to the substitution, it read as- “the scheme is a fund of funds scheme investing in scheme(s) with similar requirements.”
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What this means in practice
Compliance actions
- Applies to
- Venture Capital scheme
- Frequency
- Per co-investment
- Evidence
- Co-investment structuring documentation; Terms comparison versus main scheme
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Where it connects
Read alongside
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Check yourself
Quiz Centre
Test yourself on Regulation 29
13 questions in the unified bank test this regulation. Each explains every option and cites the provision.
A VC scheme co-investing via a segregated portfolio must ensure the segregated-portfolio investors get terms that are:
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Your notes
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Venture Capital schemes