Fund Management Entity (FME) Governance: Best Practices and Regulatory Requirements Fiduciaries: Definition and Appointment Fiduciaries hold a pivotal role in the governance of a Fund Management Entity (FME). In the case of a fund incorporated as a company, the Board of Directors comprises fiduciaries. For an LLP, it is the Designated Partners, and for a Trust, it includes Trustees and the board of a Trustee company. FMEs appoint these fiduciaries before filing a scheme document […]

Understanding Restricted Schemes: A Comprehensive Guide Utilized by Registered Financial Market Entities (FMEs) for various investment strategies, Restricted Schemes have garnered immense attention lately. Incorporating startup investment, social ventures, SMEs, and infrastructure, these schemes yield high business potential. This guide aims to shed light on the integral components of Restricted Schemes, offering profound insights for potential investors. What Exactly Are Restricted Schemes? Restricted Schemes bridge the gap between investors and potential early-stage ventures or industries […]

Other Fund Management Activities: Portfolio Management Services Identifying the Appropriate Fund Management Entity (FME) Any registered FME, whether servicing retail or non-retail sectors, has the capability to deliver Portfolio Management Services (PMS) to its clientele. Client Categories Eligible for Portfolio Management Services Several categories of clients qualify to benefit from the portfolio management services offered by an FME: Persons residing outside India Non-Resident Indians (NRIs) Non-individual residents in India capable under the Foreign Exchange Management […]

Understanding Environmental, Social and Governance (ESG) The Fundamentals of ESG The term ESG is engineered to motivate businesses and investors to critically evaluate the potential implications of their activities on the environment, society, and governance structures. This ESG evaluation aims at ensuring proactive identification and subsequent management of sustainability-related aspects on a continual basis. ESG Applicability Threshold for FMEs A Fund Management Entity (FME) managing assets valued above USD 3 billion at the end of […]

Gift City: A Promising Opportunity for Mutual Funds Introduction New Delhi: Mutual funds may soon have an opportunity to invest in companies traded in Gujarat’s Gift City exchanges beyond the usual cap implemented for their overseas investments. This development comes as the government opens up the special economic zone for direct listing of Indian firms.   IFSCA Expert Panel Recommendation A 16-member expert panel, appointed by the International Financial Services Centers Authority (IFSCA), recommended a […]