A Fund Management Entity, or FME, is the registered manager of a fund in GIFT City. If you want to pool money from investors and manage it from the IFSC, the FME is the entity that holds the registration; the funds it launches are called schemes.
What it is, in simple words
Instead of registering each fund separately, GIFT City registers the manager once. That manager then files its schemes with the regulator. It is a manager-led model, which is why the FME sits at the centre of almost every fund conversation in the IFSC.
Who typically registers one
- Domestic asset managers and alternative investment fund sponsors adding an offshore-facing arm
- Global managers raising foreign capital for India and cross-border strategies
- Family offices, private credit teams and venture managers building an international vehicle
- Portfolio management teams serving non-resident clients
What an FME is allowed to do
Depending on the category it registers under, an FME can manage restricted schemes for accredited or large investors, retail schemes, portfolio management services, and investment advisory work. Strategies range widely — venture and private equity, private credit, listed equity, real assets and fund-of-funds structures.
Why managers choose GIFT City
- Capital can be raised and deployed in foreign currency without leaving the Indian legal system
- A single regulator for both the manager and its schemes
- A concessional tax framework built for IFSC units and their investors
- Investment teams, administrators, auditors and legal counsel in one location
Broad requirements at a glance
- A company, LLP or branch set up as a unit in the GIFT SEZ
- Registration with IFSCA under the IFSCA (Fund Management) Regulations, 2025
- Net worth and key managerial personnel appropriate to the FME category chosen
- Scheme documents filed with the regulator before launch
- Ongoing valuation, disclosure, reporting and investor-eligibility obligations
Questions people usually ask
Do I register the fund or the manager? The manager. Schemes are then filed under that registration.
Can one FME run several funds? Yes — that is the point of the model, subject to the category it holds and scheme-level filings.
Can non-resident investors participate? Yes, subject to investor-eligibility rules that differ between restricted and retail schemes.
Is a physical office required? Yes, an FME operates from a registered unit inside GIFT City with real people on the ground.
Where to go next
Start with our eligibility and fit check to see which FME category fits your strategy, read the detailed fund management entity guide, or browse registered managers in the entity directory.
