![]() ![]() Relationship Banker - Federal and Evans Financial Center - Colorado Central. Nakul Beri is senior managing director, global client origination and coverage at Waterfield Advisors. Hello, Denver Its really great to be here. If the regulatory body continues to embrace progressiveness and competitiveness, GIFT City has the potential to evolve into a formidable global financial hub in due course. The global financial hub status of India relies on IFSCA maintaining its relatively open regulatory approach. Asset classes with long exit horizons such as global PE/VC funds seem attractive when viewed through this lens.įamily offices that establish a FIF in GIFT City can leverage the expertise of wealth managers and advisers in GIFT City to enhance their investment strategies. An enticing prospect is the potential to receive a 100% income tax exemption for 10 consecutive years within a 15-year period, (subject to the nature of investments qualifying as requisite ‘business’) along with exemptions from GST. Operating within the parameters of a Special Economic Zone (SEZ), GIFT City provides several tax benefits and exemptions. Additionally, the costs associated with administration, setting up, and ongoing operations are significantly lower compared to similar foreign jurisdictions. Its close proximity to major Indian cities, such as Ahmedabad and Mumbai ensures seamless connectivity to worldwide markets. All investments made by the FIF will be subject to FME regulations.įor Indian HNIs, GIFT City offers unparalleled opportunities to access diverse financial services domestically, eliminating the need for overseas transactions. This, coupled with tax incentives, is likely to lure global fund managers to GIFT city The FIF will be treated as an Indian resident for taxation, while considered a foreign resident for exchange control. The recently introduced fund management regulations by IFSCA aim to regulate the fund management entity (FME), a shift from the traditional method of regulating the funds themselves. For instance, only entities with a profitable track record of three years can make overseas direct investments (ODIs), unless they are family offices in the IFSC, where this rule is not applicable. Nevertheless, the IFSCA, which oversees the regulation of GIFT City, operates based on a modern and transparent regulatory structure that ensures ease of business operations and protection for investors. Investors have often voiced concerns over India’s stringent rules on international investments. ![]()
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