Co-investment and Leverage
Regulation 41
Co-investment and Leverage
IFSCA (Fund Management) Regulations, 2025Amended in 2026Chapter III · Schemes for Fund Management
Chapter III · Schemes for Fund Management
Regulation 41 – Co-investment and Leverage
Amended 2026 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 co-invest via SPV (per Authority framework) or segregated , with the same no-more-favourable-terms condition as VC schemes.
In plain English
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The rule, in its own words
Read the exact text of Regulation 41
41. (1) A restricted scheme may co-invest in permissible investments under sub-regulation (1) of regulation 34 through a 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 restricted 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 C: 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 (4 notes)
Footnotes from the consolidated text. They record earlier wording and are not operative law.
- 27 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 “detailed under the Chapter II”
- 28 The word “or” omitted by the International Financial Services Centres Authority (Fund Management) (Second Amendment) Regulations, 2026, w.e.f. September 10, 2026.
- 29 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.”
- 30 Inserted by International Financial Services Centres Authority (Fund Management) (Second Amendment) Regulations, 2026 w.e.f. September 10, 2026.
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What this means in practice
Compliance actions
- Applies to
- Restricted scheme
- Frequency
- Per co-investment
- Evidence
- Co-investment structuring documentation
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Where it connects
Read alongside
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Check yourself
Quiz Centre
Test yourself on Regulation 41
3 questions in the unified bank test this regulation. Each explains every option and cites the provision.
A Restricted scheme co-investing via a segregated portfolio must offer terms no more favourable than the main scheme's investors.
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Your notes
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Restricted (non-retail) schemes