Eligible FME and Clients
Regulation 73
Eligible FME and Clients
IFSCA (Fund Management) Regulations, 2025No change in 2026Chapter VI · Other Fund Management Activities
Chapter VI · Other Fund Management Activities
Regulation 73 – Eligible FME and Clients
High importance about 3 min
Portfolio Management Services: Running PMS — agreements, reporting, investment restrictions and advisory services.
1
In plain English
Only Registered FMEs may offer Management Services, and only to specified client categories (persons resident outside India, NRIs, and eligible non-individual residents under FEMA outward-investment permissions).
In plain English
2
The rule, in its own words
Read the exact text of Regulation 73
73. (1) A Registered FME may offer Portfolio Management Services to its clients in accordance with these regulations.
(2) A FME in its capacity as a portfolio manager may have the following categories as clients:
(a) a person resident outside India;
(b) a non-resident Indian;
(c) a non-individual resident in India who is eligible under FEMA to invest funds offshore, to the extent of outward investment permitted; and
(d) an individual resident in India who is eligible under FEMA to invest funds offshore, to the extent allowed under the liberalised remittance scheme (LRS) of Reserve Bank of India.
(3) A FME operating as a portfolio manager in an IFSC shall be permitted to invest in securities …
Show the full text
73. (1) A Registered FME may offer Portfolio Management Services to its clients in accordance with these regulations.
(2) A FME in its capacity as a portfolio manager may have the following categories as clients:
(a) a person resident outside India;
(b) a non-resident Indian;
(c) a non-individual resident in India who is eligible under FEMA to invest funds offshore, to the extent of outward investment permitted; and
(d) an individual resident in India who is eligible under FEMA to invest funds offshore, to the extent allowed under the liberalised remittance scheme (LRS) of Reserve Bank of India.
(3) A FME operating as a portfolio manager in an IFSC shall be permitted to invest in securities and financial products in an IFSC, India or Foreign Jurisdiction:
Provided that in case of a discretionary portfolio management service, it shall invest in the securities listed or to be listed or traded on the stock exchanges, money market instruments, units of investment schemes and other financial products as specified by the Authority from time to time.
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.
Provided that in case of a discretionary portfolio management service, it shall invest in the securities listed or to be listed or traded on the stock exchanges, money market instruments, units of investment schemes and other financial products as specified by the Authority from time to time
4
What this means in practice
Compliance actions
- Applies to
- Registered FME
- Frequency
- Per client onboarding
- Evidence
- Client eligibility screening records
5
Where it connects
Read alongside
6
Check yourself
Quiz Centre
Test yourself on Regulation 73
7 questions in the unified bank test this regulation. Each explains every option and cites the provision.
PMS may be offered by Registered FMEs to which clients?
7
Your notes
→ Next
Work with Prashant Kumar
A question on Regulation 73 for your FME?
Eligible FME and Clients: get advice on how it applies to your structure, scheme or filing.
›
Portfolio Management Services