SEBI or IFSC? Decision Tool
Answer a few simple questions about your investment plans and see whether a SEBI Alternative Investment Fund (AIF) in India or an IFSC Fund Management Entity (FME) in GIFT IFSC may suit you better.
What is your main objective?
Select the option that best describes your goal. You can refine this later.
Who are your investors, and where will you invest?
Answer both questions. Each one moves the result towards SEBI or IFSC.
Where are most of your investors?
Why we ask
Investors resident in India suit an onshore SEBI AIF raising money in rupees. Investors outside India suit an IFSC scheme, which is set up for cross-border money.
Where will the fund invest?
Why we ask
Investing in India is the core use of a SEBI AIF. A SEBI AIF's overseas investments are subject to RBI and SEBI conditions (Reg 15(1)(a)) and SEBI's overseas limit allocation (Master Circular, Chapter 5).
How will the fund raise money?
The currency you work in and whether retail investors can come in.
In which currency do you want to raise money and report?
Why we ask
Working in rupees fits an onshore SEBI AIF. Raising and reporting in a foreign currency fits a GIFT IFSC structure.
Do you want to offer the fund to retail investors?
Why we ask
SEBI AIFs can raise money only by private placement (Reg 10(g)). In IFSC, a Registered FME (Retail) can run retail schemes open to all investors.
What will a typical investor put in?
Select the range closest to your expected cheque size per investor.
Why we ask
The usual minimums are ₹1 crore for a SEBI AIF (Reg 10(c)) and USD 150,000–250,000 for IFSC restricted and VC schemes. Both allow lower tickets for insiders and no minimum for accredited investors.
Can you set up an office in GIFT IFSC and base your key people there?
An IFSC FME has to run from GIFT IFSC.
Why we ask
An IFSC FME needs a dedicated office in IFSC, with its KMPs based there and investment decisions taken from there (Regs 7, 10).
Your answers lean towards… answer every question to see your result (0 of 7 answered).
Please answer to continue.
This tool gives an indicative lean based on your answers. It is not legal, tax or regulatory advice and does not replace the notified text of the SEBI (Alternative Investment Funds) Regulations, 2012, the IFSCA (Fund Management) Regulations, 2025, or a professional review of your facts.
Meet the expert
CS Prashant Kumar
Company Secretary & Compliance Officer
Global Horizons Capital Advisors (IFSC) Private Limited — an IFSCA-licensed investment banker
Published in The Chartered Accountant (Jun 2025, Jan 2025, Mar 2024) and Chartered Secretary (Aug 2023)
Prashant Kumar is a seasoned Company Secretary and corporate governance strategist with more than 13 years of experience advising large corporates, promoter-led groups and global businesses on compliance, regulatory risk and board governance. In GIFT IFSC, the IFSCA regime is his day job rather than a research topic.