CIRCULAR
No. IFSCA-IF-10PR/1/2023-Capital Markets/6 February 20, 2025
To,
All Fund Management Entities in International Financial Services Centres (IFSCs)
Dear Sir / Madam,
Subject: Appointment and Change of Key Managerial Personnel by a Fund
Management Entity
- Reference is drawn to regulation 7 of the IFSCA (Fund Management) Regulations, 2025 (hereinafter referred to as the “Regulations”) which requires the Fund Management Entity (FME) to appoint Key Managerial Personnel (KMPs) based out of IFSC and meeting the requirements prescribed regarding educational qualification, work experience, etc. Further, it also stipulates that any appointment of and changes to the KMPs shall take place only in the manner as specified by the International Financial Services Centres Authority (“Authority”).
- The Authority hereby specifies the manner and procedure to be followed by a FME for effecting the appointment of or change to the KMPs subsequent to the grant of registration by the Authority to the FME.
- The FME shall file an intimation to the Authority regarding the proposal to appoint or change a KMP in the prescribed format as provided in Annexure, along with the payment of the applicable fee. The applications regarding appointment / change of a KMP which are pending for approval of the Authority as on the date of issuance of the Circular may be refiled in accordance with the Circular along with the proof of payment already made in this regard.
- Comments of the Authority, if any, shall be communicated within seven (7) working days from the date of filing of the intimation with the Authority, which shall suitably be taken into consideration by the FME in effecting its proposal for appointment or change of the KMP.
- The FME and person(s) in control of the FME shall hold the responsibility of ensuring adherence to the eligibility criteria for the KMPs as specified by Authority.
- The FME shall suitably plan its recruitment process and succession of the KMPs to ensure adequate manpower to undertake its operations in IFSC. The FME shall further ensure that the vacant position of a KMP is refilled at the earliest with a suitable candidate meeting the eligibility criteria. In case of any vacancy at a KMP position, the FME shall identify a suitable candidate and file intimation with the Authority at the earliest and in no case later than 3 months from the date such vacancy arises. In any case, a KMP position shall not remain vacant for a period more than six (6) months from the date such vacancy arises, i.e., the next candidate for a vacant KMP position must join the FME in IFSC latest within six (6) months from the date of relieving of the previous candidate.
- This circular is issued in exercise of the powers conferred under sections 12 and 13 of the International Financial Services Centres Authority Act, 2019, read with regulation 7 and regulation 146 of the Regulations, and shall come into force with immediate effect.
- A copy of this circular is available on the website of the Authority at ifsca.gov.in
Yours faithfully,
Sd/-
Pavan Shah General Manager
Division of Investment Funds – I and New Products & Services
Capital Markets Department Email: [email protected]. in Tel: +91-79-61809844
