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A recent circular by the International Financial Services Centres Authority (IFSCA) has clarified the fee structure for fund management entities (FMEs) such as mutual funds, AIFs, and PMS operating in GIFT City IFSC.
As per the circular, FMEs and individual broker-dealers are required to pay various types of fees, including application fees, license/registration/recognition/authorization fees, annual recurring fees, activity-based fees, processing fees, late fees, and informal guidance fees.
Key regulations on fee applicability in GIFT IFSC:
|
Type |
Application Fee (USD) |
License/Registration Fee (USD) |
Annual Fee (USD) |
|
Authorised FME |
2,500 |
5,000 |
2,000 |
|
Family Investment |
2,500 |
15,000
|
2,000 |
|
Registered FME (Non |
2,500 |
7,500 |
2,000 |
|
Registered FME |
2,500 |
10,000 |
2,000 |
Venture Capital funds and angel funds
Currently, the IFSCA has exempted venture capital schemes in the IFSC from paying any application, license/registration, or annual fees. However, they are required to pay an activity-based fee of USD 7,500.
Similarly, angel funds are exempted from application and registration fees but must pay activity-based fee of USD 3,000 and investment intimation filing fee of USD 500.
AIFs
AIFs, like venture capital and angel funds, are subject only to activity-based fees. Here are applicable fees:
- Category-I AIF: USD 7,500
- Category-II AIF: USD 15,000
- Category-III AIF: USD 22,500
Other Schemes
Other schemes have also been exempted from most fees, except for activity-based fees:
- Retail Schemes: USD 22,500
- Exchange-Traded Fund (ETF): USD 22,500
- Investment Trust: 0.05% of the offer size
- Portfolio Management Services (PMS): USD 5,000
- Applications for Regulatory/Innovation Sandbox, Fund Lab, etc.: USD 2,500
Other key highlights:
- Separate applications are required for different financial services under respective regulations
- Multiple applications from the same entity for different services will be treated as separate
- All applicable fees must be paid within 15 days of filing the application
- Failure to pay may result in rejection of the application at IFSCA’s discretion, but the applicant may reapply
- Registration fees are non-refundable if the application is denied
- Once licensed, entities must pay the conditional recurring fee as decided by IFSCA
- Flat recurring fees are payable by April 30 of the financial year (e.g., fees for FY 2025–26 must be paid by April 30, 2025)
- Applications seeking relaxation from regulatory requirements must include a USD 2,500 processing fee
- Late fee payments will attract simple interest of 0.75% per month
- Late submission of periodic returns will incur a late fee of USD 100 per month (a partial month counts as a full month)
- The application fee for the formal guidance scheme is USD 1,000. If the application is not in line with relevant provisions, USD 250 (25% of the fee) will be deducted as processing fee
- In exceptional cases, IFSCA may waive all or part of any fee
- No fees will be refunded if the applicant withdraws the application, surrenders the license/registration, or if IFSCA revokes it
