Section 54 requires acquisition of a new residential house within the prescribed period but does not require the sale proceeds from the original house to fund that acquisition. The source of funds is immaterial where the statutory purchase condition is satisfied, including where sale proceeds are used as business capital and the replacement house is purchased through borrowed funds. Exemption for the resulting capital gains remains available, and an addition based solely on alleged non-utilisation of sale proceeds is not sustainable.

Restricted Schemes may be launched by Registered FMEs and classified as Category I, Category II or Category III Alternative Investment Funds according to their investment strategy. Socially or economically desirable sectoral investments are Category I, while complex trading strategies, including listed or unlisted derivatives, are Category III. Other investments are Category II. Category I and Category II schemes must be close-ended, while Category III schemes may be close-ended or open-ended.

Investment valuation norms require an FME to value investments at realizable value in good faith under policies that ensure true and fair valuation. Policies must prescribe methodologies for each asset type, be applied consistently, address unreliable market quotations, undergo periodic review, and address conflicts of interest. For Retail Schemes, valuation policies and methods must be disclosed in the offer document and on the FME website. The FME remains responsible for fair valuation and correct NAV and must deviate from established procedures where necessary, with appropriate investor disclosures.

Advertisement standards for fund management products require communications to be accurate, fair, clear, complete and concise. Advertisements must not be false, misleading, biased or deceptive, or include assumptions, projections, testimonials or rankings. They must not obscure significant statements, exploit investor inexperience, use exaggerated slogans, or adopt language inconsistent with the product's nature, risks and return profile. Information must be timely and consistent with disclosures in the Scheme Documents.

GST refund applications must be examined, processed and disposed of within prescribed statutory timelines and departmental guidelines. Zonal Incharges and Ward Officers must personally monitor pending refund claims in their jurisdictions and ensure adherence to the prescribed procedure. Deviations from the procedure or undue delay in processing refund claims may attract appropriate action.

Schedule IV assigns Investment Trust responsibilities to trustees, investment managers, project managers, sponsors, valuers and auditors. Trustees hold assets for unit holders, supervise key managers, protect subscription monies, oversee unitholder voting and manage replacement of investment and project managers. Investment managers make investment decisions, ensure title, insurance, disclosures, reporting, annual audit and segregation of activities. Project managers operate and complete projects. Sponsors establish the trust, transfer relevant assets or interests and meet holding safeguards. Valuers must act independently and avoid conflicts, while auditors must provide a true and fair audit with access to records and information.

Fund management entities must exercise due diligence, protect investor interests, maintain segregated and ring-fenced scheme assets, provide accurate and timely investor information, apply prescribed valuation norms, and comply with AML/CFT requirements. Fiduciaries must oversee scheme operations, ensure arm's-length dealings, review associate transactions, and verify operational, audit and compliance arrangements before scheme launch. Principal officers, fund managers and compliance officers must address non-compliance, grievances and conflicts of interest. Portfolio managers must promptly deploy client funds, avoid trades against client interests, provide adequate risk information, and deliver suitable advice.

Net worth requirements under Schedule II of the International Financial Services Centres Authority (Fund Management) Regulations, 2025 prescribe minimum thresholds for fund management entities by category. An Authorised FME must maintain USD 75,000; a Registered FME operating on a non-retail basis must maintain USD 500,000; and a Registered FME operating on a retail basis must maintain USD 1,000,000.

Registration applications for fund management activities in an IFSC must be filed through SWIT with declarations of complete and true information, conformity of proposed activities with the object clause, and fitness and propriety of relevant persons. Applicants must notify material changes, undertake core investment, portfolio management and grievance-handling activities from the IFSC, and base required key management personnel there. Branch applicants must ringfence branch operations. Registration entails ongoing compliance with applicable legal and operational requirements and furnishing further information when sought.

Co-investment by a Venture Capital scheme may occur through a special purpose vehicle or a segregated portfolio issuing a separate class of units. Segregated portfolio investments cannot be made on terms more favourable than those available to the common portfolio, and their creation must be appropriately disclosed in the placement memorandum. A special purpose vehicle may undertake leverage if the leverage is disclosed in the placement memorandum.

FME contribution requirements for Venture Capital Schemes prescribe minimum and maximum investments based on the targeted corpus, with no mandatory contribution for relocated schemes. The contribution must be made proportionately with investor investments within 45 days, subject to extension, and maintained continuously. The maximum contribution ceiling does not apply where specified foreign-residency, beneficial-ownership and investment-concentration conditions are met. Exemptions apply on investor waiver, accredited-investor participation, or where a fund of funds invests in schemes with similar requirements.

Net asset value for each Venture Capital Scheme must be computed by the Fund Management Entity at least annually. The calculation procedure and methodology must be fully documented and regularly verified, with amendments made where necessary.

Valuation of venture capital scheme assets must comply with the investment valuation norms in the Sixth Schedule, and the Fund Management Entity and fiduciaries must ensure compliance. Assets are to be valued by an independent service provider, including a fund administrator, custodian, registered credit rating agency, registered valuer, or another person specified by the Authority. The requirement does not apply to qualifying fund of funds investments in regulated schemes already valued by an independent entity.

Borrowing and leverage by Venture Capital Schemes are permitted only where the placement memorandum discloses the maximum leverage and calculation methodology. Leverage must comply with those disclosures, and any deviation requires consent of investors holding at least two-thirds in value. A Fund Management Entity proposing to employ leverage must maintain a comprehensive risk-management framework appropriate to the scheme's size, complexity and risk profile.

Disclosure obligations for Venture Capital schemes require the placement memorandum to cover investment objectives, targeted investors, corpus, strategy, methodology, tenure, fees, expenses, risk management, key managerial personnel, and relevant FME and scheme particulars. The FME must disclose Net Asset Value annually within the placement memorandum timeframe and portfolio information annually within one month after each financial year. Material information identified by the FME or fiduciaries must be communicated immediately, subject to further Authority-specified disclosure requirements.

Venture Capital Schemes must maintain a corpus within prescribed minimum and maximum limits and invest at least 80 per cent of their corpus in recently incorporated investee companies or qualifying schemes. Associate investments require prior approval of 75 per cent of investors by value. Securities transactions involving associates, related schemes, or a substantial investor require the same approval, with the interested substantial investor excluded from voting. Fund of funds schemes may rely on placement memorandum disclosure of underlying schemes and relevant managerial associations instead of obtaining approval.

Venture Capital schemes may invest in specified securities, debt and money market instruments, securitised debt, limited liability partnerships, and permitted scheme or fund units, with placement memorandum disclosure where required. Pending deployment of funds, the fund management entity may use certificates of deposit, bank deposits, money market instruments and specified investment-scheme units. Every investment must comply with regulatory requirements, the scheme's investment objective and placement memorandum disclosures.

Venture Capital schemes must operate solely as close-ended schemes, with the amount proposed to be raised and a minimum three-year tenure disclosed in the placement memorandum. A scheme may be constituted as a company, limited liability partnership, or trust. Tenure extensions require investor approval, and extensions beyond two years require express consent from willing investors and an exit opportunity for dissenting investors.

Venture Capital Schemes are limited to fifty investors and permit investment by persons meeting the prescribed minimum threshold or by Accredited Investors. Employees, directors and designated partners of the Fund Management Entity may invest subject to a reduced threshold, while Accredited Investors are exempt from minimum investment requirements. Joint investors must each meet the applicable minimum contribution, with specified family relationships permitted to satisfy the general threshold on an aggregate basis. Registered Fund Management Entities may use restricted schemes to target more investors or accept lower application sizes.

Delhi Authority for Advance Ruling directed the System Analyst, EDP Cell of the Department of Trade and Taxes, to upload a specified advance ruling on the GST portal. The direction concerns Advance Ruling No. 13/DAAR/2025 dated 1 October 2025, issued in relation to M/s Young Optimistic Transport Solutions Private Limited. The upload is intended to place the ruling in the public domain, with intimation to the concerned branch after completion.