GIFT IFSC (Gujarat International Financial Tech-City) is India’s initiative to promote offshore financial services. Headquartered in GIFT City, Gandhinagar, Gujarat, India, the IFSC aims to provide onshore talent with an offshore regulatory and technological framework, enabling Indian firms to compete with global financial centers.
IFSC’s Key Features and Offerings:
- Cross-border financial services in a competitive tax environment
- A wide range of permissible businesses including:
- Alternative investment funds
- Fund management
- Insurance, banking, and capital markets
- Fintech
- Aircraft leasing and financing
- Ship leasing and bullion exchange
- Foreign universities and global in-house centres
Types of Fund Management Entities (FMEs)
Under IFSCA regulations, FMEs are categorised into three types:
- Authorized FME
- For venture capital and family investment funds
- Minimum net worth: USD 75,000
- Immediate launch upon filing
- Registered FME (Non-Retail)
- For private placement investments
- Minimum net worth: USD 500,000
- 21-day prior filing with IFSCA
- Registered FME (Retail)
- For retail and public investment schemes
- Minimum net worth: USD 1,000,000
- 21-day prior filing with IFSCA
Each FME type has specific rules around investor eligibility, scheme types, NAV frequency, and governance.
Schemes Permitted Under IFSCA
FMEs can launch and manage a wide range of schemes including:
- Venture Capital Schemes
- Restricted Schemes (Non-Retail)
- Retail Schemes
- Special Situation Funds
- Exchange Traded Funds (ETFs)
- ESG Schemes
Each scheme type comes with its own eligibility criteria, investment limits, and compliance obligations.
The TPFMS Model: Platform-Play Fund Management
To lower entry barriers for foreign and domestic managers, IFSCA introduced the Third-Party Fund Management Services (TPFMS) model in June 2025. This allows registered FMEs to host and manage schemes on behalf of external managers – without requiring them to establish substance in GIFT City.
Key Benefits:
- No need for physical presence in GIFT City
- FMEs retain full regulatory responsibility
- External managers can focus on strategy while FMEs handle governance, compliance, and reporting
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Galaxy Modules for GIFT City FMEs
1. Investment Compliance
Galaxy automates post-trade monitoring, breach alerts, and audit-ready governance reports – aligned with IFSCA’s multi-layered investment restrictions.
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2. Shareholder Disclosures
Galaxy supports SEBI’s SAST rules for inbound investments and jurisdiction-specific rules for outbound investments (e.g., SEC 13F, EU 3%/5% thresholds).
Explore Galaxy Shareholder Disclosure Monitoring
3. Global Exchange Due Diligence
Galaxy enables FMEs to assess market eligibility, settlement systems, and regulatory risks – critical for both inbound and outbound investment strategies.
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4. Investor Communications
Galaxy streamlines the production and delivery of investor disclosures, including scheme documents, ESG reports, and fund factsheets.
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Why Galaxy by Funds-Axis?
Whether you’re launching a fund in GIFT City or expanding globally, Galaxy delivers:
- Plug-and-play deployment
- Pre-built rule libraries
- Regulator-aligned reporting formats
- Managed service or tech-only options
- Scalable compliance infrastructure
Access the Full Briefing Document
For a detailed overview of GIFT City IFSC regulations, FMEs, schemes, and operational models, download the full Funds-Axis briefing.
Ready to Launch in GIFT City? Let Galaxy Power Your Fund Management
Funds-Axis is your trusted RegTech partner for GIFT City IFSC. From onboarding to reporting, Galaxy simplifies compliance and empowers FMEs to focus on growth.
