Eligible Investors
Regulation 32
Eligible Investors
IFSCA (Fund Management) Regulations, 2025Amended in 2026Chapter III · Schemes for Fund Management
Chapter III · Schemes for Fund Management
Regulation 32 – Eligible Investors
Amended 2026 High importance about 3 min
Restricted (non-retail) schemes: The core non-retail scheme regime — corpus, investors, disclosure, valuation and contribution.
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In plain English
Restricted schemes are capped at 1,000 investors (or as specified); minimum investment is USD 150,000 (Accredited Investors also eligible), reduced to USD 40,000 for FME employees/directors/designated partners.
In plain English
1,000 investors
Restricted scheme — max investors
USD 150,000 (USD 40,000 for FME insiders)
Restricted scheme — minimum investment
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The rule, in its own words
Read the exact text of Regulation 32
32. (1) Restricted schemes shall not have more than one thousand (1000) investors or such number as may be specified by the Authority. (2) Investors investing at least USD 150,000 and Accredited Investors may invest in such schemes: Provided that in case of investors who are employees or directors or designated partners of the FME, the minimum value of investment shall be USD 40,000: Provided further that a FME may accept investments in a Restricted scheme from multiple investors acting together as joint investors, wherein each such investor shall invest at least the minimum applicable investment amount: Provided also that the following individuals, not more than two, when act as joint inves…
Show the full text
32. (1) Restricted schemes shall not have more than one thousand (1000) investors or such number as may be specified by the Authority. (2) Investors investing at least USD 150,000 and Accredited Investors may invest in such schemes: Provided that in case of investors who are employees or directors or designated partners of the FME, the minimum value of investment shall be USD 40,000: Provided further that a FME may accept investments in a Restricted scheme from multiple investors acting together as joint investors, wherein each such investor shall invest at least the minimum applicable investment amount: Provided also that the following individuals, not more than two, when act as joint investors, the total investment by such individuals shall be at least USD 150,000: (i) An investor and his/her spouse; (ii) An investor and his/her parent; (iii) An investor and his/her daughter/son. Provided also that the minimum investment threshold shall not apply to an accredited investor.
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.
- 16 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- “Provided that if a FME fails to achieve the minimum size of corpus, as specified under sub-regulation (2) of regulation 35, 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 6 months by paying 50 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.
Provided also that the minimum investment threshold shall not apply to an accredited investor.
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What this means in practice
Compliance actions
- Applies to
- Restricted scheme
- Frequency
- Ongoing, per investor onboarding
- Evidence
- Investor register with commitment amounts and eligibility basis
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The numbers that matter
| Requirement | Threshold | On crossing |
|---|---|---|
| Restricted scheme — max investors | 1,000 investors | Cannot exceed (or as specified) |
| Restricted scheme — minimum investment | USD 150,000 (USD 40,000 for FME insiders) | Below threshold not permitted (except accredited investors) |
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Where it connects
Read alongside
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Check yourself
Quiz Centre
Test yourself on Regulation 32
7 questions in the unified bank test this regulation. Each explains every option and cites the provision.
What is the maximum number of investors in a restricted scheme?
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Your notes
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Restricted (non-retail) schemes