Types of Schemes Available Under the Regulations and their Eligibility for Different Fund Management Entities (FMEs)

Diving into the regulations, we identify a variety of schemes available. Each scheme, carefully designed and regulated, facilitates specific types of investments. Furthermore, each category of FME is eligible to launch certain schemes after due filing with the Authority. Let’s delve into the details.

Array of Schemes Under the Regulations

Venture Capital Schemes

Falling into the ambit of these regulations are Venture Capital Schemes, which include Angel Schemes. The purpose of these schemes is to pave the way for Accredited Investors or High Net Worth Investors to invest hassle-free in start-ups, emerging or early-stage venture capital undertakings.

Restricted Schemes (Non-Retail Scheme)

On the other hand, Restricted Schemes work primarily for Accredited Investors or High Net Worth individuals. These Non-Retail Schemes facilitate investments in a wide range of strategies, and are broadly classified into several categories namely, Category I Alternative Investment Funds (AIFs), Category II AIFs, and Category III AIFs.

Retail Schemes

Lastly, we spot Retail Schemes within the purview of these regulations. As the name suggests, these schemes target retail investors, enabling them to invest in Mutual Funds.

Eligibility of Different Categories of Fund Management Entities (FMEs) to Launch Schemes

After unraveling the different types of schemes under the regulations, let’s explore which category of FME is eligible to launch each scheme. This information is crucial to understanding the different roles of each type of FME.

Venturing into Venture Capital Schemes with FMEs

Authorised FMEs and both types of Registered FMEs, Retail and Non-Retail, are equipped to launch Venture Capital Schemes, inclusive of Angel Schemes. Nonetheless, this is subject to prior filing with the Authority.

Restricted Schemes – A Playground for Some FMEs

While Registered FMEs (Non-Retail) and Registered FMEs (Retail) are allowed to launch Restricted Schemes, these are off-limits for Authorised FMEs, even after filing with the Authority prior to launching.

Retail Schemes – An Exclusive Realm

Retail Schemes stand as an exclusive territory for Registered FMEs (Retail). Neither the Non-Retail Registered FMEs nor the Authorised FMEs are eligible to launch Retail Schemes.

Deep-Diving in Subsequent Sections

The complexity and intricacies of these schemes and the eligibility of different types of FMEs to launch them require a more profound exploration, which we delve into in subsequent sections. Here, we aim to provide a thorough understanding of these integral aspects that define a large part of the role of Fund Management Entities in the financial ecosystem.