GIFT City Fund Investor Base Rises 42.7% to 9,594 in Q4FY26, Led by Retail Participation

Retail investors accounted for the largest share of new additions to GIFT City's fund management sector during the January-March quarter of FY26, according to data released by the International Financial Services Centres Authority (IFSCA). 

The number of investors in retail schemes, also known as Global Mutual Funds, rose to 3,438 at the end of March from 1,239, about 3 months earlier. This represented a quarter-on-quarter increase of 177.5%. 

Overall Investor Base Expands 

Across the fund management ecosystem, the total investor base increased to 9,594 by the end of March from 6,721 at the end of December, a rise of 42.7%. 

Out of 2,873 investors added during the quarter, retail schemes contributed more than three-fourths of the increase.  

The number of operational Fund Management Entities (FMEs) also moved up to 217 from 202 in the previous quarter, while registered schemes increased to 360 from 327. 

Overseas Participation Rises 

Investments from Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) continued to grow during the quarter. 

Their cumulative investments stood at $747.3 million at the end of March, compared with $630.1 million at the end of December, an increase of 18.6% over the 3-month period. 

Regulatory Changes Introduced 

During the quarter, IFSCA introduced a consolidated master framework that allows market intermediaries to apply for multiple capital market activities through a single-window process. 

The regulator also amended fund management regulations to permit multiple extensions to fundraising timelines under certain conditions.  

Separately, operating units were directed to migrate dematerialised securities to IFSC-recognised depositories and obtain International Securities Identification Numbers (ISINs) by August 31, 2026. 

Debt Listings and Compliance Action 

Debt listings on IFSC exchanges continued to rise during the quarter. The cumulative value of listed debt securities reached $70.31 billion by late March, up from $68.03 billion at the end of December. 

The regulator also stepped up compliance monitoring. In total, 4 FMEs and 7 capital market intermediaries received show-cause notices for various regulatory violations, including reporting lapses, unregistered activities and non-payment of statutory fees. 

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Conclusion 

Data for the March quarter showed growth in retail participation, overseas investments and fund management activity in GIFT City, alongside regulatory changes and compliance actions undertaken by IFSCA. 

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