Team Blitz India
BENGALURU: The Securities and Exchange Board of India (Sebi) announced last week that foreign funds set up at GIFT City in Gujarat can take full investment from nonresident Indians (NRIs) and other Indian-origin citizens.
However, they will need to make granular disclosures about their investors if the fund holds more than 33 per cent of its equity assets under management (AUM) in a single Indian group.
Such disclosures will also be needed in case the fund along with its investor group holds more than Rs 250 billion ($3 billion) of equity AUM in the Indian markets.
The funds will have to either submit their investors’ identity documents such as passport or permanent account number (PAN) to Sebi or adhere to the framework set by the International Financial Services Regulatory Authority, which regulates financial services in GIFT City. The government has been promoting GIFT City as a “gateway for global capital and financial services for the economy”.
More than 80 fund managers with commitments of $30 billion have set up funds at GIFT City in the last three years.
The regulator also said that asset management companies (AMCs) should put in place a mechanism to prevent front-running and market abuse.
