The Varied Categories for Fund Management Entity (FME) Registration

Regulation 3(4) lays out the categories under which an applicant can seek registration to be a Fund Management Entity (FME). These categories broadened the range of players that can participate actively in the Fund Management arena.

Authorised Fund Management Entity (FME)

The first category pertains to the Authorised FME, a category explicitly given permission to launch Venture Capital Schemes. This includes Angel Schemes focused on investing in unlisted securities of fresh and emerging start-ups, or even companies at an early growth stage. The role of the Authorised FME, thus, becomes of prime importance in the thriving startup ecosystem.

Registered Fund Management Entity (FME) Non-Retail

The Registered FME category further branches out into two sub-categories. The first sub-category is the Non-Retail Registered FME. A Non-Retail Registered FME has the permit to launch a Restricted Scheme and offer varied Portfolio Management Services. Interestingly, their realm of operation also includes the schemes permitted to the Authorised FME. This versatility broadens their operational spectrum significantly.

Registered Fund Management Entity (FME) Retail

Situated at the intersection of retail and fund management, the next subcategory is the Retail Registered FME. The Retail Registered FME category gets the green light to launch Mutual Funds and Exchange Traded Funds (ETFs). Furthermore, their spectrum of operation is inclusive of the schemes and corresponds with activities for which the Non-Retail Registered FME and the Authroised FME have the permit.

In-Depth Exploration in Subsequent Sections

As we dive deeper into the Fund Management Entities, you’ll gain further insight into other varied aspects related to these 3 categories of FMEs. Subsequent sections will throw light on critical aspects like eligibility conditions and other requirements K-need to know while seeking registration.

Our focus on breaking down and categorizing the Fund Management Entities aims to provide clarity on how different FME types have tailored responsibilities and opportunities within the financial sector, thereby giving a detailed understanding of their trajectories. It’s essential we grasp this complex yet vital element of the fund management ecosystem to better understand the dynamics of financial services.