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AIF Activity Picks Up Steam In IFSC At GIFT City; Half Dozen Entities Apply To Set Up Shops
The entities are getting attracted towards the GIFT City as it provides tax-efficient structure, world-class infrastructure, unparalleled connectivity, and transportation access, and access to multiple markets from IFSC.
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At least half a dozen entities have applied to set up alternative investment funds (AIFs) in the international financial services centre (IFSC) at Gujarat GIFT City for catering to investors globally, a top official said.
This included Multiples Alternate Asset Management, Kedaara Capital and Avendus Group, Tapan Ray, Managing Director, and Group Chief Executive Officer, GIFT City told PTI on Wednesday.
True Beacon launched the first AIF in Gujarat International Finance Tec (GIFT) City last month.
The AIFs will cater to investors globally and provide a seamless route to participate in the Indian capital markets.
'We are seeing huge interest from Indian and global institutions to set up funds in IFSC. Moreover, half a dozen applications for AIFs have come,' Ray said.
Most of the applications are for the Category II and Category III AIFs.
He, further, said that GIFT-City, India's only IFSC, is the natural gateway for inbound and outbound investment in the country and has emerged as a preferred destination for setting up fund business.
According to him, the entities are getting attracted towards the GIFT City as it provides tax-efficient structure, world-class infrastructure, unparalleled connectivity, and transportation access, and access to multiple markets from IFSC.
In addition, IFSC AIFs are permitted to make investments without having to comply with the diversification requirements, they can borrow funds or engage in leveraging activities.
'We are further focusing to create a globally competitive environment to incentivise entities to establish AIFs within the IFSC,' Ray said.
An AIF is a privately pooled investment vehicle that collects funds from investors (whether Indian or foreign) for investing it in accordance with a defined investment policy.
It provides long-term and high-risk capital to a wide variety of ventures at all stages of their evolution, creating stability and entrepreneurial capability.
Apart from AIFs, a lot of ancillary services will too start their businesses.
With regard to the GIFT City project, Ray said that several things happened in the last one and a half-year, which slowed down development work here but now things are picking up.
'We are getting a lot of positive inquiries on the commercial and residential front. Going forward, we expect a lot of activity in respect of the project,' he said.
At present, 225 entities are operating from Gujarat Gift City, employing 10,000-12,000 people.