IFSC eases capital norms for AIFs, exempts need for sponsors' commitment

Also allows such funds to invest in units of domestic MFs as well as those of other FATF-compliant jurisdictions

The International Financial Services Centres Authority (IFSC) has done away with the need for managers or sponsors to have continuing interest in alternative investment funds (AIFs) domiciled in IFSC and allowed such funds to invest in units of domestic mutual funds as well as those of other FATF-compliant jurisdictions.

Domestic AIF regulations require the fund's sponsor or manager to contribute a certain amount of capital to the fund, which is known as continuing interest. This amount is supposed to remain locked in the fund until distributions have been made to all other investors in the fund.

Minimum continuing interest translates