Introduction:

To address industry queries and ensure consistent compliance, IFSCA has issued detailed guidelines clarifying the eligibility criteria for Key Managerial Personnel (KMPs), particularly Principal Officers (POs) and Compliance Officers (COs), under the Fund Management Regulations, 2025.

Summary:

IFSCA’s new guidelines aim to bring clarity on the eligibility of Principal Officers and other KMPs under Regulation 7 of the Fund Management Regulations, 2025. The guidelines respond to numerous industry queries and are designed to help Fund Management Entities (FMEs) make informed hiring decisions.

Key Highlights:

Minimum Educational Requirements:

• • A professional or postgraduate qualification in finance, law, accountancy, economics, capital markets, etc.
  • Alternatively, 15+ years of relevant experience allows for eligibility with only a graduate degree.

Experience Criteria:

• • Minimum 5 years of experience in securities markets or financial services.
  • Consulting experience (e.g., transaction advisory, due diligence) considered for a maximum of 2 years.
  • Compliance officers with 3+ years in compliance/risk roles in listed companies or regulated entities may also qualify.

Recognized Experience Categories Include:

• • Fund managers, portfolio managers, investment advisors, broker-dealers, research analysts, wealth managers, investment bankers, credit rating agencies, and regulators (e.g., SEBI, RBI, IRDA, PFRDA).
  • Experience in foreign counterparts to these institutions is also considered.

Clarifications on Non-Qualifying Roles:

• • Non-core roles like IT, audit, training, or accounting in regulated entities do not count.
  • Personal fund trading or treasury management for unregulated family offices is excluded.
  • BPO/KPO experience capped at 2 years.

Advisory Notes:

• • FMEs are advised to seek IFSCA’s confirmation on candidate eligibility prior to formal appointment.
  • Reapplication with fee is required if a candidate is found ineligible.

These guidelines strengthen regulatory clarity and reinforce GIFT City’s positioning as a global fund management hub.

🔗 Website Link for Full Notification/Reading:

Read Official Guidelines (IFSCA Website)

Call to Action:

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