Shah expects 20-25 funds to set up base in GIFT IFSC by next March
Several initiatives are being undertaken at GIFT-IFSC to be a leading fund destination for both the Indian and foreign centric funds, Manoj Kumar, Executive Director, International Financial Services Centres Authority (IFSCA), has told international delegates at a webinar-roadshow on 27 Aug 2021.
Kumar has also urged the industry, market participants and intermediaries to make use of the unlimited opportunities available at GIFT-IFSC, which he sees as a light touch regulator with seamless process for market participants.
“As a unified financial regulator, best global practices are being adopted with a strong focus on ease of doing business at all levels,” Kumar said at the ‘Digital Roadshow on Opportunities for Fund Industry in GIFT-IFSC’, organized by FICCI under the aegis of IFSCA.
Addressing representatives from the domestic fund industry as well as from countries including Singapore, the UK, Canada, Japan, Sri Lanka, London and Peru at the webinar, Kumar also spoke about the pilot launch of International Bullion Exchange on the IFSC platform which is scheduled to go live on 1 October 2021, the Foundation Day of IFSCA.
He underscored that this is a huge development since the exchange ecosystem is expected to bring all the market participants at a common transparent platform for bullion trading and help establish India’s position as a dominant trading hub.
“Institutionalization of IFSCA as a unified regulator was the need of the hour and will bring back to India significant investments which were which were being exported until now. Having a unified regulator allows advantage of a holistic view across dimensions and facilitates quick decision making,” Cyril Shroff, Co-Chair, FICCI Task Force on IFSC, said in complimenting the IFSCA for its speed and proactiveness in policy announcements.
He further added that GIFT-City is increasingly becoming a popular destination for foreign capital due to the several advantages it offers in terms of favourable tax regime and cost and ease of doing business.
Dipesh Shah, Head Development, IFSCA, India, highlighted significant momentum being witnessed in the growth of Fund Industry ecosystem at India’s maiden IFSC, over the last one year. “Close to 25 Fund related entities have already finalised their participation in IFSC. Going forward, we expect another 20-25 funds to set up base in GIFT IFSC by next March.”
There is also a significant opportunity available for Indian investors to use GIFT-CITY as gateway for investments in foreign paper instead of remittances abroad, added Shroff.
Sunil Sanghai, Co-Chair, FICCI Task Force on IFSC, emphasized the regulator’s focus on building a viable proposition for the fund industry at GIFT IFSC. “Several positive initiatives have already been taken and some of the key benefits being offered to the AIF industry in IFSC include lower operating costs, competitive tax regime, no limit on outbound investments and creation of an entire ecosystem for fund management.
“IFSCA is also examining the feasibility of Variable Capital Company structure, which would be a huge development.” #investment #funds #banking /fiinews.com
