Net worth requirements
Regulation 8
Net worth requirements
IFSCA (Fund Management) Regulations, 2025No change in 2026Chapter II · Registration of Fund Management Entity (FME)
Chapter II · Registration of Fund Management Entity (FME)
Regulation 8 – Net worth requirements
Critical importance about 3 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
An FME must meet and continuously maintain the minimum prescribed in the Second Schedule (or as otherwise specified by ) for as long as it holds registration — not just at the time of applying.
In plain English
USD 75,000
Net worth — Authorised FME
USD 500,000
Net worth — Registered FME (Non-Retail)
USD 1,000,000
Net worth — Registered FME (Retail)
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The rule, in its own words
Read the exact text of Regulation 8
8. (1) An entity seeking registration as a FME shall at all times comply with the net worth requirements as specified in Second Schedule of these regulations or such other amount as may be specified by the Authority.
(2) An entity operating as a branch shall at all times comply with the minimum net worth requirements specified in these regulations for its activities in IFSC which may be maintained at the level of the parent entity, and the parent entity shall ensure that adequate funds are available for the day-to-day operations of the branch.
(3) The minimum net worth requirements as stated above shall be separate and in addition to the minimum net worth requirements applicable for other activities within or outside IFSC.
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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What this means in practice
Practical effect
Net worth is a continuing condition, not a one-time entry test. Slipping below the floor at any point is a breach.Compliance actions
- Applies to
- All FME categories
- Frequency
- Continuous / ongoing
- Trigger
- From registration onward, at all times
- Evidence
- Audited financials evidencing net worth; Parent-entity fund adequacy confirmation (for branches)
Common mistake
Measuring net worth only at registration and not monitoring it as the business runs.4
The numbers that matter
| Requirement | Threshold | On crossing |
|---|---|---|
| Net worth — Authorised FME | USD 75,000 | Continuous minimum net worth |
| Net worth — Registered FME (Non-Retail) | USD 500,000 | Continuous minimum net worth |
| Net worth — Registered FME (Retail) | USD 1,000,000 | Continuous minimum net worth |
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Where it connects
Refers to / depends on
Read alongside
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Check yourself
Quiz Centre
Test yourself on Regulation 8
12 questions in the unified bank test this regulation. Each explains every option and cites the provision.
What is the minimum net worth for a Registered FME (Non-Retail)?
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Your notes
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Becoming an FME