The International Financial Services Centres Authority (IFSCA), on April 10, 2026, issued a circular mandating stricter governance and oversight for schemes in IFSCs by ensuring clear segregation of fiduciary roles under the Fund Management Regulations, 2025.
The circular clarifies that Fund Management Entities (FMEs) must not appoint fiduciaries (such as trustees, directors, or designated partners) to simultaneously provide fund administration, valuation, audit, or lending/financing services to the same scheme—whether directly or through associates. This is aimed at avoiding conflict of interest and ensuring independent decision-making by fiduciaries, who are already bound by a prescribed code of conduct requiring due diligence and professional judgment.
For existing schemes already filed or approved, FMEs are required to ensure compliance by September 30, 2026. The circular has been issued under the powers of the IFSCA Act, 2019 and comes into immediate effect, reinforcing transparency and strengthening governance standards in IFSC fund structures.
[Notification No. IFSCA-IF-10PR/7/2024-Capital Markets/10042026]
