Nature and Structure of Scheme
Regulation 33
Nature and Structure of Scheme
IFSCA (Fund Management) Regulations, 2025No change in 2026Chapter III · Schemes for Fund Management
Chapter III · Schemes for Fund Management
Regulation 33 – Nature and Structure of Scheme
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 may be open- or close-ended; close-ended schemes need a minimum 1-year tenure disclosed in the PM, extendable by up to 2 years with two-thirds (by value) investor approval.
In plain English
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The rule, in its own words
Read the exact text of Regulation 33
33. (1) Restricted schemes may be launched as open ended or close ended schemes.
(2) In case of a close ended restricted scheme, the amount to be raised and the tenure of the scheme, which shall not be less than one (1) year, shall be disclosed in the placement memorandum.
(3) The tenure of the close ended restricted schemes may be extended up to two (2) years subject to approval of two-thirds (2/3rd) of the investors by value of their investment in the restricted scheme.
(4) Further extension to the tenure of a close ended restricted scheme beyond the two (2) year period shall be subject to express consent of the willing investors and exit opportunity being made available to the dissenting investors.
(5) Restricted schemes shall be constituted in IFSC as Company or LLP or Trust under the applicable laws of India.
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.
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Exceptions and conditions
Taken from the wording of this provision — the carve-outs and conditions worth reading closely.
(3) The tenure of the close ended restricted schemes may be extended up to two (2) years subject to approval of two-thirds (2/3rd) of the investors by value of their investment in the restricted scheme
(4) Further extension to the tenure of a close ended restricted scheme beyond the two (2) year period shall be subject to express consent of the willing investors and exit opportunity being made available to the dissenting investors
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What this means in practice
Compliance actions
- Applies to
- Restricted scheme
- Frequency
- At launch; event-driven for extension
- Evidence
- PM tenure disclosure; Investor approval for extension
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Where it connects
Read alongside
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Check yourself
Quiz Centre
Test yourself on Regulation 33
5 questions in the unified bank test this regulation. Each explains every option and cites the provision.
A close-ended Restricted scheme needs a minimum tenure of how long, disclosed in the PM?
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Your notes
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Restricted (non-retail) schemes