ifsc: the Aifs are now moving towards Ifsc gifts | Ahmedabad News

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Ahmedabad: Fund Ecosystem in India’s First International Financial Services Center (IFSC) in Gujarat International Finance Tec-City (GIFT City) Takes Shape with Over 20 Alternative Investment Funds (AIFs) Now Registered with IFSC Authority, the unified regulator for IFSCs in India.
These 20 AIFs are seeking to manage funds of Rs 40,000 crore at GIFT City in Gandhinagar that would otherwise have landed in international financial centers in Singapore or Mauritius, said an official close to the development.
According to the official, another 25-30 such proposals for OFIs are awaiting clearance from the IFSC regulator.
“In less than two years from the creation of the regulator IFSC, around 45 funds have called GIFT City,” he added.
The latest to gain IFSC approval is Aditya Birla Sun Life AMC Limited (ABSLAMC), which received IFSCA approval on January 20 to perform portfolio management services through a branch at the International Financial Services Center (IFSC) in India.
ABSLAMC’s decision to establish a new unit at Gujarat International Finance Tec-City (GIFT City) is a strategic step towards growing its international business to expand its reach and serve its global clients, including NRIs to invest in India, the company said in a statement.
“This is an important development given that Aditya Birla would perform these operations from the IFSC instead of Singapore. The Indian government’s aim to outsource offshore through the IFSC is gaining momentum with the establishment of the IFSCA as a unified financial regulator,” said an industry expert familiar with the development.
ABSLAMC is the fourth largest asset manager in the country with a presence in over 280 pan-India locations and is already present in international markets such as Dubai, Singapore and Mauritius.
“We are seeing great momentum for the establishment of AIFs within the IFSC, the IFSC fund ecosystem now spans AIFs, fund managers, PMSs, IAs and fund administrators. Favorable regulatory framework, competitive tax regime and low operating cost attract global fund structures to GIFT IFSC,” said Dipesh Shah, Executive Director (Development) of the International Financial Services Centers Authority (IFSCA) .
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