The International Financial Services Authority (‘IFSCA’) has issued a circular prescribing reporting requirements for fund management entities (‘FMEs’) registered under the IFSCA (Fund Management) Regulations, 2022 (‘IFMR’).
This alert provides a brief snapshot of the reporting requirements prescribed by the IFSCA for FMEs
- The FMEs are required to make half yearly reporting to IFSCA in the prescribed format.
- The reporting prescribed by IFSCA include provision of:
a. Quantitative information about the fund management operations of the FMEs which is to be submitted in the editable excel format – click here for the format
b. A duly signed ‘compliance report’ to be submitted in .pdf format – click here for the format - Submission dates:
a. First report for the period October 1, 2022, to March 31, 2023, to be submitted by FMEs by June 21, 2023.
b. Subsequent reports shall be submitted within 21 calendar days of the end of the half-year. - The reports are to be submitted to IFSCA via mail at FME-reporting@ifsca.gov.in
Our comments:
The reporting requirement prescribed for FMEs under the IFMR are comprehensive in terms of the quantitative date to be shared by the FMEs for each of their activities fund management, portfolio management and family office activities such as the details of the schemes launched, investor composition under each scheme, leverage details and portfolio details under each scheme. The compliance report requires the compliance officer as well as the principal to confirm that the activities of the FME are being conducted as per various regulations under IFMR. In all, it appears that the IFSCA has drawn from the from the experience of SEBI over the years and have introduced comprehensive reporting requirements for FMEs upfront which should help IFSCA in collecting data for statistics, industry trends, issues faced by the industry which could be useful in monitoring and reforming the IFMR in future.