IFSCA had in August 2024 proposed rules for ‘platform play’, allowing FMEs to use existing infrastructure to provide third-party fund management services to offshore asset managers. The rationale behind the platform play circular was to facilitate the growth of the funds management industry in GIFT IFSC. Fund managers have now approached the GIFT City regulator seeking certain tweaks, people familiar with the matter told Moneycontrol. The demands include lowering ‘substance requirements’ and increasing maximum threshold for funds to migrate into a new FME at the IFSC, they said. The proposed rules, as part of a consultation paper, were meant to lower costs for offshore funds to set up base at GIFTIFSC. The regulator is however not immediately planning to take up the circular for discussion, a person with direct knowledge of the matter said. It is not just the cost of getting a FME license that is a pain point for off-shore funds, experts said, but also the time it takes to secure a license.