- Will be launching Inbound and Outbound Funds, along with PMS Offerings
- This expansion aims to simplify access for international investors, who can bypass FPI and PAN requirements and benefit from Indian equity exposure
- The outbound fund will enable resident Indian investors to use the Liberalised Remittance Scheme (LRS) limits and remit US dollars to invest internationally
NE BUSINESS BUREAU
AHMEDABAD, APR 30
Aiming to simplify access for international investors, who can bypass FPI and PAN requirements and benefit from Indian equity exposure and enable resident Indian investors to use the Liberalised Remittance Scheme (LRS) limits and remit US dollars to invest internationally, PPFAS Alternate Asset Managers IFSC Pvt. Ltd., a wholly owned subsidiary of Parag Parikh Financial Advisory Services Limited, inaugurated its new office at GIFT City (Gujarat International Finance Tec-City), Gandhinagar, Gujarat on Wednesday.
The new office will serve as the hub for the firm’s global and domestic alternative investment offerings.
With the necessary infrastructure, team, and regulatory groundwork already established, the company is well-positioned to launch its inbound fund as soon as the regulatory approvals are in place. Furthermore, the firm will provide outbound fund structures and Portfolio Management Services (PMS) from its GIFT City base.
The inbound fund will be a fund of funds (FOF) that serves as a feeder into the existing mutual fund scheme “Parag Parikh Flexicap Fund”. It targets NRIs and foreign nationals seeking exposure to India. The benefits of this fund include the fact that there is no need for a PAN number, no requirement to open an NRO/NRE account, and no FPI license. Repatriation is not restricted, as funds are invested in US Dollars and currency risk is eliminated. Under the IT Act, any gains from unit transfers of the Fund are exempt from tax, and no TDS is deducted.
The outbound fund will enable resident Indian investors to use the Liberalised Remittance Scheme (LRS) limits and remit US dollars to invest internationally. Since the RBI Limit for the asset management industry was exhausted in February 2022, investors have wanted to invest abroad. The exact structure of this scheme is being explored, and the firm will reveal it as and when it is crystallised.
Strategic benefit of setting up a subsidiary in GIFT City
“The expansion to GIFT City aligns with PPFAS’s long-term vision of building a robust alternative investment platform that leverages the IFSC’s regulatory benefits and global connectivity.” said Rajeev Thakkar, CIO & Director, PPFAS Alternate Asset Managers IFSC.
Commenting on the strategic benefit of setting up a subsidiary in GIFT City, Thakkar said, “Many investors from outside who do not want to get FPI (Foreign Portfolio Investors) registrations in India or NRIs who do not want to create PIS in India—individuals as well as institutions—can, through the PPFAS GIFT City subsidiary, get dollar-denominated Net Asset Value (NAV). They can invest in funds based in GIFT City and can also get Indian equity participation. For foreign investors, it could mean lesser paperwork and no requirement of PAN. In the case of PPFAS, the benefit will be the ability to access a new customer segment.”
“In India we have a customer base of nearly 42 lakh with asset under management (AUM) of Rs 1 lakh 20 crore. With this expansion in GIFT City, we will get 1,000 new customers within this financial year. Repatriation is not restricted, as funds are invested in US Dollars and currency risk is eliminated. Under the IT Act, any gains from unit transfers of the Fund are exempt from tax, and no TDS is deducted,” Thakkar added.
We bridge global investment strategies with Indian expertise: Nirmal Bari
“We are excited to operationalise our presence in GIFT City. This marks a significant milestone for our alternate asset management journey and strengthens our ability to cater to both domestic and global investors,” said Nirmal Bari, Director and Principal Officer at PPFAS Alternate Asset Managers IFSC Pvt. Ltd. “Our office here will allow us to bridge global investment strategies with Indian expertise, and we look forward to bringing value-driven, transparent solutions to our clients.”
PPFAS Alternate Asset Managers IFSC Pvt. Ltd. remains committed to its investor-first philosophy and disciplined investment approach. The firm will share further updates on product offerings and timelines as it gears up for the formal launch of its inbound fund.
