Borrowing
Regulation 49
Borrowing
IFSCA (Fund Management) Regulations, 2025No change in 2026Chapter III · Schemes for Fund Management
Chapter III · Schemes for Fund Management
Regulation 49 – Borrowing
Medium importance about 3 min
Retail schemes: Launch process, investor protection, concentration limits and disclosure for retail schemes.
1
In plain English
Retail schemes generally cannot borrow, except to meet temporary redemption liquidity needs, capped at 20% of AUM and 6 months' duration.
In plain English
2
The rule, in its own words
Read the exact text of Regulation 49
49. A retail scheme shall not borrow except to meet temporary liquidity needs for the purpose of redemption:
Provided that the retail scheme shall not borrow more than twenty per cent. (20%) of the AUM of the scheme and the duration of such a borrowing shall not exceed six (6) months.
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.
3
Exceptions and conditions
Taken from the wording of this provision — the carve-outs and conditions worth reading closely.
A retail scheme shall not borrow except to meet temporary liquidity needs for the purpose of redemption:
Provided that the retail scheme shall not borrow more than twenty per cent
4
What this means in practice
Compliance actions
- Applies to
- Retail scheme
- Frequency
- Event-driven
- Evidence
- Borrowing records with purpose and duration tracked against limits
5
Where it connects
Read alongside
6
Check yourself
Quiz Centre
Test yourself on Regulation 49
6 questions in the unified bank test this regulation. Each explains every option and cites the provision.
Retail scheme borrowing for temporary redemption liquidity is capped at what?
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Your notes
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