NE BUSINESS BUREAU
GANDHINAGAR, SEPT 17
Investment advisory operations are all set to take off in the International Financial Services Centre (IFSC) at GIFT City with markets regulator Sebi giving license to Aavishkaar Capital to begin its operations.
Aavishkaar Investment Advisers IFSC Private Limited, a wholly-owned subsidiary of Aavishkaar Capital, has become the first investment advisor to obtain the Sebi license to start operations in GIFT IFSC, GIFT City said in a statement on Thursday.
It will provide advisory services for foreign investors, including offshore funds.
“Investment advisory operations at GIFT IFSC will open a new business opportunity and help to serve foreign clients, including offshore funds in a cost-effective way.
“We are sure that the presence of Aavishkaar will encourage more market participants to consider GIFT IFSC for setting up their investment advisory business,” said Tapan Ray, MD and Group CEO at GIFT City.
Vineet Rai, founder, and CEO of Aavishkaar Capital, said GIFT City has created able options within India for the fund management industry.
“Our intention is to further strengthen our global fund management platform and a presence within IFSC will help us achieve that by allowing us to service our offshore clients more efficiently,” Rai said.
Sebi issued operating guidelines for investment advisors in IFSC in January and provided certain relaxations in February.
Under the framework, any recognised entity or entities desirous of operating in IFSC as an investment adviser (IA), may form a company or LLP to provide investment advisory services. An applicant needs to have a net worth of not less than US $0.7 million. In case the IA is set up as a subsidiary, the net worth requirement is to be met by the subsidiary itself. However, if the subsidiary does not meet the criteria, the net worth of the parent can be considered.
Partners and representatives of applicants offering investment advice will need to have a post-graduate degree or post-graduate diploma of a minimum of two years tenure in finance, accountancy, business management, commerce, economics, capital market, banking, insurance, or actuarial science from recognized institution.
Investment Adviser in IFSC will have to ensure to conduct an annual audit in respect of compliance with investment adviser norms and these guidelines from a chartered accountant or a company secretary or its equivalent under the laws in force of the country in which the applicant is registered.
The existing recognized entities in IFSC can also apply for IA registration without forming a separate company or LLP.
