Summary
- The International Financial Services Centres Authority (IFSCA) has clarified that Fund Management Entities (FMEs) can accept subscription amounts from e-wallet accounts issued by IFSCA-authorised Payment Service Providers (PSPs) for investments.
- This guidance, dated 20.07.2026, confirms that redemption proceeds can also be credited back to the same e-wallet accounts, provided the PSP complies with AML/CFT/KYC regulations.
- IFSCA emphasized that while both PSPs and IBU/IBC can issue accounts, only PSPs require authorization under the IFSCA (Payment Services) Regulations, 2024.
- This development may enhance operational flexibility for FMEs in managing client funds within the IFSC framework.
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