FME Regulatory Intelligence, Learning & Practice · IFSCA (Fund Management) Regulations, 2025
Valuation

Regulation 38

Valuation

IFSCA (Fund Management) Regulations, 2025Amended in 2026Chapter III · Schemes for Fund Management

Chapter III · Schemes for Fund Management

Regulation 38 – Valuation
Amended 2026 High importance about 3 min

Restricted (non-retail) schemes: The core non-retail scheme regime — corpus, investors, disclosure, valuation and contribution.

1

In plain English

FME/fiduciaries must value ">Restricted scheme investments per Sixth Schedule norms, now explicitly tied to NAV purposes, with the same broadened exemption for regulated, independently-valued underlying schemes as Reg 26.

In plain English
2

The rule, in its own words

Read the exact text of Regulation 38
38. (1) The FME and fiduciaries shall ensure compliance of investment valuation norms specified in the Sixth Schedule. (2) 23[For the purpose of computation and disclosure of NAV to the investors and in line with] the investment valuation norms, the assets of the scheme shall be valued by an independent service provider, such as a fund administrator, a custodian, a credit rating agency registered with the Authority or a valuer registered with Insolvency and Bankruptcy Board of India or such other person as may be specified by the Authority: 24[Provided that this requirement shall not apply to the investments made by a scheme in other scheme(s), that are regulated by a financial sector regulator, directly or through a manager, in IFSC, India or foreign jurisdiction(s), and valued by any independent entity.]
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.
3

What this means in practice

Compliance actions
Applies to
Restricted scheme
Frequency
Per valuation cycle
Evidence
Valuation reports; Exemption-basis documentation
4

What changed in 2026

Same wording clarification as item 8, applied to Restricted scheme valuation norms.

Practical effect
Textual only.
What to do
Update SOP references.

Same broadened valuation-exemption proviso as item 9, applied to Restricted schemes.

Practical effect
Same as item 9 for Restricted schemes.
What to do
Re-assess underlying-scheme investments for the valuation exemption.
5

Where it connects

Refers to / depends on

Referred to by

Read alongside

6

Check yourself

Quiz Centre

Test yourself on Regulation 38

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

Restricted-scheme investments must be valued according to which schedule?
7

Your notes

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Restricted (non-retail) schemes
Regulation 38 Chapter III · Part B Amended 2026 High · about 3 min