Comments on the Draft IFSCA (Amendment) Bill, 2026 for Variable Capital Companies, submitted by Artha Bharat Investment Managers IFSC LLP (Sachin Sawrikar, sachin@arthabharat.com).
Our comments, attached, focus on the competitiveness of the proposed VCC framework relative to Singapore, Mauritius, and other international fund domiciles. Key recommendations:
1. Permit a sub-fund to elect separate legal personality (Mauritius model) for leveraged and financing-intensive strategies, without disturbing the default ring-fencing model.
2. Introduce an inward, and a corresponding outward, redomiciliation mechanism for VCCs, on the lines of Singapore, Mauritius, Cayman, BVI, and Luxembourg.
3. Exclude VCCs and their sub-funds from the Companies Act-style layering restriction proposed under Section 13W(14).
4. Create an administrative route through IFSCA or the Registrar for solvent, non-contentious restructurings and windings-up, reserving the NCLT for contested and insolvency matters.
5. Provide explicit tax certainty at the sub-fund level, including residency, treaty entitlement, and pass-through treatment.
Detailed clause-by-clause comments and rationale are set out in the attached document.