India’s financial ecosystem just witnessed a significant evolution with the International Financial Services Centers Authority (IFSCA) opening GIFT City to third-party fund managers. This progressive move introduces a plug-and-play model that lowers entry barriers and simplifies the fund management structure bringing India in line with globally recognized jurisdictions like Singapore.
What This Means for Asset Managers
The regulatory change allows external sponsors and asset managers to operate under existing fund platforms at GIFT City, eliminating the need to create a standalone Fund Management Entity (FME). This accelerates time-to-market, reduces setup costs, and enables quicker deployment of strategies for both domestic and global players.
Key Highlights of the Framework
Reduced Structural Complexity: Fund managers can now avoid the lengthy process of establishing a full-fledged FME.
Faster Launches: Enables quicker fund roll-outs and strategy testing with lower friction.
Improved Flexibility: The model supports differentiated strategies under clearer governance and investor protection standards.
Lower Capital Requirement: The minimum AUM threshold is set at $50 million, providing easier access for newer fund sponsors.
A Boost for NRIs and Global Investors
This initiative is not just regulatory reform it’s a signal to global and NRI investors that India is ready to lead in cross-border fund management. By aligning with global best practices, GIFT City is quickly emerging as a preferred hub for innovation, speed, and financial inclusivity.
At RURASH Financials, we believe this opens compelling new pathways for clients exploring Alternate Investment Funds (AIFs) and offshore structures. We continue to guide our investors and partners toward informed, globally aligned investment decisions.
To explore how this development could influence your investment strategy, connect with our advisory team.
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