Alerts & Updates 10th Nov 2025
IFSCA has issued a consultation paper proposing that Venture Capital Schemes, Restricted Schemes and eligible Environmental, Social or Governance Schemes established in GIFT-IFSC be permitted to allow “differential distribution” of returns among investors in order to enable blended finance and flexible fund structures. Blended finance operates on the premise that different investor groups may have different risk-return objectives. Concessional participants, often multilateral agencies, development finance institutions, or philanthropic investors may intentionally accept subordinated or reduced returns to crowd in commercial capital. The Consultation Paper recognizes that achieving such structuring in pooled fund vehicles requires the flexibility to issue multiple classes of units with differentiated distribution entitlements.
In our update, we have reviewed and analyzed IFSCA’s proposals that seek to enable blended finance through flexible fund structures.
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