Track Record and Reputation of Fairness
Regulation 6
Track Record and Reputation of Fairness
IFSCA (Fund Management) Regulations, 2025No change in 2026Chapter II · Registration of Fund Management Entity (FME)
Chapter II · Registration of Fund Management Entity (FME)
Regulation 6 – Track Record and Reputation of Fairness
High importance about 4 min
Becoming an FME: Registration categories, legal form, track record, key personnel, net worth and fit-and-proper.
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In plain English
Requires a sound track record and reputation for fairness. For a Retail FME this is quantified: either the FME group has five years managing at least USD 200 million for more than 25,000 investors, or persons controlling at least 25% of the FME have five years in fund-management-related activity for at least 1,000 investors on at least USD 50 million, with the FME holding of at least USD 2 million. For Non-Retail and Authorised FMEs, it is relevant employee experience.
In plain English
5 yrs managing ≥ USD 200m AUM for > 25,000 investors
Retail FME track record (route 1)
Control person(s) ≥25%: 5 yrs, ≥1,000 investors, ≥ USD 50m; FME net worth ≥ USD 2m
Retail FME track record (route 2)
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The rule, in its own words
Read the exact text of Regulation 6
6. (1) The applicant shall have a sound track record and general reputation of fairness and integrity in all its business transactions.
(2) For the purposes of sub-regulation (1) "sound track record" shall mean:
(a) In case of Registered FME (Retail):
(i) The FME, its holding company, or their subsidiaries, shall have at least five (5) years of experience in collectively managing Assets under Management (AUM) of at least USD 200 million with more than twenty-five thousand (25,000) investors; or
(ii) Person(s) in control of the FME holding at least twenty-five per cent. (25%) shareholding in the FME be carrying on activities related to fund management, including portfolio management, wealth m…
Show the full text
6. (1) The applicant shall have a sound track record and general reputation of fairness and integrity in all its business transactions.
(2) For the purposes of sub-regulation (1) "sound track record" shall mean:
(a) In case of Registered FME (Retail):
(i) The FME, its holding company, or their subsidiaries, shall have at least five (5) years of experience in collectively managing Assets under Management (AUM) of at least USD 200 million with more than twenty-five thousand (25,000) investors; or
(ii) Person(s) in control of the FME holding at least twenty-five per cent. (25%) shareholding in the FME be carrying on activities related to fund management, including portfolio management, wealth management, distribution of financial products, and investment advisory, for a period not less than five (5) years, collectively for at least one thousand (1,000) investors on assets of at least USD 50 million, and such FME has a net worth of at least USD 2 Million or such other amount as may be specified:
Provided that the Authority may specify any other criteria for determining sound track record to facilitate new generation fintech companies with innovative ideas that may lead to further market development;
(b) In case of Registered FME (non-retail) and Authorised FME, that their employees have relevant experience as specified in these regulations.
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.
Provided that the Authority may specify any other criteria for determining sound track record to facilitate new generation fintech companies with innovative ideas that may lead to further market development
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What this means in practice
Compliance actions
- Applies to
- Registered FME (Retail) (quantified track record), Registered FME (Non-Retail) / Authorised FME (employee experience)
- Frequency
- At registration
- Evidence
- AUM / investor-count / tenure evidence; Control-person shareholding and experience records; Net worth statement (alternate Retail route)
Example
A firm applying as Retail with only USD 60 million AUM and 900 investors cannot use the first route; it must qualify through the control-person route and hold USD 2 million net worth.5
The numbers that matter
| Requirement | Threshold | On crossing |
|---|---|---|
| Retail FME track record (route 1) | 5 yrs managing ≥ USD 200m AUM for > 25,000 investors | Qualifies for Retail registration on this route |
| Retail FME track record (route 2) | Control person(s) ≥25%: 5 yrs, ≥1,000 investors, ≥ USD 50m; FME net worth ≥ USD 2m | Alternate route to Retail registration |
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Where it connects
Read alongside
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Check yourself
Quiz Centre
Test yourself on Regulation 6
11 questions in the unified bank test this regulation. Each explains every option and cites the provision.
Under the first Retail track-record route, the FME group must have five years managing at least how much, for how many investors?
For Non-Retail and Authorised FMEs, the track-record test is met through relevant employee experience.
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Your notes
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