Guidelines on Ascertaining KMP Eligibility in Accordance with Regulation 7 of the IFSCA (Fund Management) Regulations, 2025 - KMP Eligibility Criteria

Sep 4, 2026

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These guidelines clarify how to ascertain Key Managerial Personnel (KMP) eligibility for Fund Management Entities (FMEs) under Regulation 7 of the IFSCA (Fund Management) Regulations, 2025. They address minimum educational qualifications and relevant experience requirements for principal officers and other KMPs, including finance- and compliance-related credentials. The text also explains how to calculate qualifying experience for specified intermediary activities, while incorporating conditional relaxations based on years of fund-management experience and professional qualifications.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages4

Reading Time10 min

AccessFree to download

Overview and Purpose

Regulation 7(5): Eligibility Requirements

Educational Qualifications and Conditional Qualification

Experience Requirements in Securities Market and Financial Products

Explanation: Professional Qualification Inclusions

Calculation of Experience for Regulation 7(5)(b)

Qualifying Intermediary Activities and Regulators

GUIDELINES ON ASCERTAINING KMP ELIGIBILITY IN ACCORDANCE WITH REGULATION 7 OF THE IFSCA (FUND MANAGEMENT) REGULATIONS, 2025 (“FM REGULATIONS”). Following the introduction of the new Fund Management Regulations, there has been a number of industry queries regarding the eligibility criteria for Principal Officers (POs) and Compliance Officers (COs) for Fund Management Entities (FMEs). Accordingly, based on the CVs received and the nature of the enquiries made by FMEs, it has been decided to issue a brief set of ‘Guidelines for Ascertaining KMP Eligibility’ under Regulation 7 of the IFSCA (Fund Management) Regulations, 2025. These guidelines are being placed in the public domain for the benefit and guidance ofFMEs. The guidelines are intended to provide clarity on the eligibility of Key Managerial Personnel (KMPs) and to assist FMEs in making informed hiring decisions. This initiative also aims to enhance transparency and support FMEs through a consistent framework. Regulation 7(5) of the FM Regulations reads as follows: (5) The applicant shall ensure that the aforementioned principal officer as specified under sub-regulation (1) and other KMPs as specified under sub-regulations (2), (3) and (4), shall be based out of IFSC and meet the following educational qualification and experience requirements: (a) A professional qualification or post-graduate degree or post graduate diploma (minimum one year in duration) in finance, law, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or an institution recognised by the Central Government or any State Government or a recognised foreign university or institution or association or a CFA ora FRM from Global Association of Risk Professionals or any other relevant educational qualifications as may be specified by the Authority: Provided that if the principal officer, specified under sub-regulation (1), has a work experience of at least 15 (fifteen) years in the activities related to fund management, including portfolio management, investment advisory or similar activities, the minimum educational qualification required for such person shall be a graduate degree in any field: (b) In addition to the qualifications mentioned under clause (a), an experience of at least five (5) years in related activities in the securities market or financial products including in a portfolio manager, fund manager, investment advisor, broker dealer, investment banker, wealth manager, research analyst, credit rating agency, market infrastructure institution, financial sector regulator or consultancy experience in areas related to fund management, such as deal due diligence, transaction advisory or similar activities: Provided that the consultancy experience in areas related to fund management, such as deal due diligence, transaction advisory, etc. shall be considered for a maximum period of 2 years and experience in other areas as mentioned in sub-regulation (b) shall be required for at least 3 years: Provided further that for the KMP referred under sub-regulation (2), the experience mentioned in clause (b) shall be required fora minimum period of 3 (three) years, if such KMP possesses a professional qualification Page 1 of 4 Guidelines on ascertaining KMP eligibility in accordance with Regulation 7 of the IFSCA (Fund Management) Regulations, 2025 (“FM Regulations”). and has experience in compliance or risk management in a listed company or an entity regulated by a financial sector regulator. Explanation.– For the purposes of this regulation, the professional qualification shall include membership of Institute of Chartered Accountants of India, Institute of Company Secretaries of India, Institute of Cost Accountants of India or any institution equivalent thereto in a foreign jurisdiction, and for KMP referred under sub-regulation (2) it shall also include Bachelor of Laws (LLB) from a university or an institutio

FAQs

What does Regulation 7(5) require for applicants and KMPs under the IFSCA FM Regulations 2025?

Applicants must ensure the specified principal officer and other KMPs are based out of IFSC and meet educational qualification and experience requirements set out in Regulation 7(5).

What educational qualifications are accepted for a principal officer under Regulation 7(5)(a)?

A professional qualification or postgraduate degree/diploma (minimum one year) in finance, law, accountancy, business management, commerce, economics, capital market, banking, insurance, or actuarial science, from recognised Indian or foreign institutions, or equivalent accepted credentials like CFA/FRM.

How is relevant experience calculated for Regulation 7(5)(b)?

Experience for eligible categories of intermediaries is calculated based on activities related to securities market or financial products, with the document providing a structured mapping of roles to regulators/regulatory frameworks.

Sep 4, 2026

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