Gandhinagar: ASK Investment Managers Ltd, one of India’s oldest and largest portfolio management services (PMS), with an AUM of $3.90 billion, has become the first in the country to get a license from the International Financial Services Centre Authority (IFSCA) to set up a branch at GIFT City here.
With a centralized regulatory body authorizing and managing the investments in GIFT city, global investors and the NRIs would it much simpler to invest as the rules governing the capital inflows /outflows will be specifically framed keeping in mind the overall GIFT city architecture.
With the introduction of the concept of an IFSC, India is now in an advantageous position, is attractive, and has considerably eased investments for foreign institutions and NRIs. Therefore, GIFT City is now becoming competitive as compared to jurisdictions such as Singapore, Mauritius, Luxembourg, etc., according to a press release.
The Union Ministry of Law and Justice has appointed a new regulatory body (IFSCA) comprising of representatives from RBI, IRDAI, and SEBI. Foreign capital, when it flows into/outside India, has to go through various checks and balances from the FEMA perspective.
The IFSCA has been prompt, proactive, and responsive to various issues faced by the participants and ensures ironing out the anomalies that come across when foreign money is being invested in India from GIFT City.
According to recently released NSDL data, while Foreign Portfolio Investments (FPI) across emerging economies witnessed a decline due to the coronavirus pandemic, India saw a surge to $13.5 billion – a testimony to investor confidence in India’s growth story. This surge in foreign funds amid the pandemic has been possible because of the continuous effort of the government, businesses, and agencies to make India a sought-after destination over the last six years.
Tapan Ray, MD & Group CEO, GIFT City said, “Portfolio Management Services (PMS) will open a new business opportunity at GIFT IFSC and bring in investments from global investors, including NRIs. It will also create several new job opportunities for young finance professionals and attract good talent for GIFT IFSC.
GIFT City is India’s first operational smart city and International Financial Services Centre (IFSC). It is an emerging global financial and IT services hub, a first of its kind in India, designed to be at or above par with globally benchmarked business districts. It is supported by state-of-the-art infrastructure encompassing all basic urban infrastructure elements along with excellent external connectivity.
(VP)