Established in 1970 as a Non-Profit organization, IFMR was sponsored by ICICI, the House of Kotharis and other major industrial groups. The Board of Governors includes leaders of major corporations in India. The Finance Secretary, Government of Tamil Nadu, and the Vice Chancellor of the University of Madras are ex-officio board members.

Recognized as a social science research institute by the Department of Scientific and Industrial Research, Government of India, IFMR is approved as an institution of national importance by the Ministry of Finance. Faculty members at IFMR have worked and consulted with both national and international organizations. Students are too involved in these projects, ensuring continuous interactions with industry. IFMR is an approved institution by the University of Madras for pursuing Ph. D degree in Finance and Economics.

IFMR has close ties with IIBF and MMA, and research collaboration with the London School of Economics. IFMR has also recently entered into a comprehensive three year partnership with Massachusetts Institute of Technology (MIT) to redesign its entire approach towards teaching and research in order to offer a world class solution to the students. We have about 40 students from the Kennedy School of Government, Harvard Business School, Sloan School of Management, Yale University etc. pursuing close to 20 research projects there by creating a very stimulating environment on campus.