Investors collaborate with IFSCA to set up new funds in Gujarat’s Gift City

A newly formed association of chief financial officers (CFOs) of Indian private equity and venture capital funds is collaborating with the International Financial Services Centres Authority (IFSCA) to encourage the establishment of new funds in Gujarat’s Gift City.

The association, which aims to accelerate the establishment of PE/VC funds from Gift IFSC, said it would collaborate closely with IFSCA to provide feedback on operational issues and solutions to make it easier for businesses to operate from Gift IFSC.

In recent months, Several investment funds have been established at GIFT City, such as Kotak Mahindra Group’s alternative asset arm, Kotak Investment Advisors (KIAL), has its 13th real estate fund based in GIFT City.

In December 2022, the fund received a $500 million anchor investment from an Abu Dhabi Investment Authority wholly-owned subsidiary (ADIA). Vivriti Asset Management, backed by LGT Lightstone, and ASK Group’s real estate investment arm have also established funds in Gift City.

The board of directors of the association recently discussed policy and operational issues concerning funds established in Gift IFSC.

IFSCA chairman Injeti Srinivas led a discussion on initiatives to simplify the set-up process for Indian fund managers exploring GIFT IFSC, as well as recent regulatory changes to make it an appealing destination for PE/VC funds.

A single integrated form for all approvals related to setting up in IFSCA, clarity around reporting norms for entities set up in Gift IFSC, and rationalisation of SEZ norms for funds and fund managers were among the topics discussed. Taxation issues and FME (fund management entities) regulations were also discussed.

Tapan Ray, managing director and group chief executive of GIFT City, spoke about SEZ (special economic zones) and funds that operate within them.

According to a press release from the PEVCCFOA (Private Equity and Venture Capital CFO Association), the executive has promised support to create frictionless pathways for funds to operate and invest from GIFT IFSC.

PEVCCFOA aims to empower CFOs to fulfil their fiduciary responsibility and add value to the ecosystem. According to the organisation, it promotes knowledge sharing, regulatory dialogues, forums, and network formation in the private equity and venture capital investing sectors.

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