First Investment Adviser Obtains SEBI License In GIFT IFSC
Investment Advisory operations are all set to take off in India’s first International Financial Services Centre (IFSC) at GIFT City, with capital markets regulator SEBI giving license to an impact investing firm to begin its operation in GIFT IFSC. Aavishkaar Investment Advisers IFSC Private Limited, a wholly owned subsidiary of Aavishkaar Capital-the impact investing arm of the Aavishkaar Group, is the first Investment Adviser to obtain the SEBI license to start operations in GIFT IFSC. Aavishkaar Investment Adviser will provide advisory services for foreign investors including offshore funds.
Welcoming this development and Aavishkaar Capital to GIFT IFSC, Shri Tapan Ray, MD & Group CEO, GIFT City said, “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 presence of Aavishkaar will encourage more market participants to consider GIFT IFSC for setting up their investment advisory business. We would also like to thank the regulators for continued support in opening new business verticals at GIFT IFSC.”
Shri Vineet Rai, Founder & CEO of Aavishkaar Capital and Chairman of the Aavishkaar Group 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. This is the first investment adviser to set up office in GIFT City and is a true reflection of Aavishkaar Group which has been a pioneer in many initiatives till date.”
SEBI had issued operating guidelines for Investment Advisers (IA) in International Financial Services Centre (IFSC) on January 09, 2020, and further to that certain relaxations were provided via circular dated February 28, 2020.
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 USD 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 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 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.
Currently, two international exchanges are operational which provide trading platform for various products such as index derivatives, equity derivatives, currency derivatives, commodities derivatives etc. Recently, SEBI permitted listing and trading of REITs and InvITs on IFSC Exchanges at GIFT City.
About GIFT City:
GIFT City is India’s first operational smart city and International Financial Services Centre (IFSC), GIFT City 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 an excellent external connectivity.
