Search: Venture Capital Scheme
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September 2026
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FEMA & RBIIFSCA issues differential distribution framework for Venture Capital and Restricted Schemes: one senior class, junior units from USD 2 million, grants up to 49% for ESG schemes
Junior units: min USD 2 millionNew facilityIFSCA has issued the framework under which Venture Capital Schemes and Restricted Schemes in the IFSC can issue senior and junior or subordinate units with different distribution rights, to facilitate blended finance. Minimum investment in junior units is USD 2 million (USD 1 million for accredited investors). ESG schemes may accept grants up to 49% of corpus.
August 2026
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FEMA & RBIIFSCA Fund Management Regulations amended again: “associate” set at a 20% test, pre-first-close money ring-fenced, differential distribution enabled
Associate = 20% holding testRule changeThe IFSCA (Fund Management) (Second Amendment) Regulations, 2026 redefine “associate” on a 20 per cent holding test, require money received before first close to be parked only in liquid, capital-preserving investments, let Venture Capital schemes make follow-on investments in companies older than ten years, enable senior and junior units, and reset NAV disclosure and FME contribution rules.
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