Fund management
Managers, schemes and the capital that flows through them; Discretionary and advisory mandates run from GIFT City.
Fund Management
GIFT IFSC has become the place where Indian and international managers run foreign-currency funds from Indian soil. A single regulator, IFSCA, registers the manager and takes the scheme filing, and the section 147 deduction can apply to the manager's eligible income.
The questions that decide a fund mandate are always the same: who the investors are, what the scheme will hold, where decisions will really be taken, and whether the manager already runs money elsewhere. Each matter below turns on those four points.
A foreign manager launching its first GIFT fund
A manager regulated in London, Singapore or New York wants a USD fund for global and NRI investors, run from GIFT City.
Register a Fund Management Entity in the category that fits the investors, then file the scheme.
The steps
- Choose the scheme type: venture capital, restricted or retail.
- Incorporate the FME or register a branch, and place the principal officer and KMPs in GIFT City.
- File the Common Application Form and FME annexure on SWIT, alongside SEZ approval.
- File the placement memorandum and appoint custodian, auditor and fiduciaries.
- Open to investors: foreign freely, NRIs in foreign currency, residents within the LRS.
Points that need care
- Home-regulator notifications for the parent.
- Whether investment decisions are really taken in GIFT City.
An Indian AMC or AIF manager adding a GIFT platform
A SEBI-registered manager wants an IFSC vehicle for its overseas investors and outbound strategies.
A separate IFSC FME, often run alongside the onshore entity.
The steps
- Set up the IFSC FME with its own KMPs.
- Agree what the onshore and IFSC entities may share: people, research, brand.
- Launch feeder or direct schemes for foreign capital.
Points that need care
- Conflicts and information barriers between the two entities.
- Transfer pricing on shared services.
A venture or private equity fund for start-ups
A sponsor wants a closed-ended vehicle for early-stage investing, including into Indian companies.
A venture capital scheme under the FM Regulations.
The steps
- Register or appoint an FME.
- File the venture capital scheme.
- Plan the route for each investment into India.
Points that need care
- Investments into India follow the foreign-investment rules for the route used.
- Differential distribution is now possible under the September 2026 framework, if structured correctly.
A credit, hedge or fund-of-funds strategy
A manager wants an open- or closed-ended fund for accredited investors with a flexible mandate.
A restricted scheme.
The steps
- Confirm investor eligibility.
- Document the strategy, leverage and valuation policies.
- Appoint a custodian and fund administrator.
Points that need care
- Investment restrictions in the Regulations for the scheme type.
A retail fund or ETF
A sponsor wants a fund open to retail investors, including an exchange-traded fund.
A retail scheme, with the strictest disclosure and diversification rules.
The steps
- Register in the retail FME category.
- Prepare the offer document.
- Arrange listing if it is an ETF.
Points that need care
- IFSCA has consulted on secondary listing of ETFs (August 2026); the final rule should be checked before launch.
Relocating an offshore fund to GIFT City
A fund in Mauritius, Singapore or the Cayman Islands wants to move its domicile to India.
An IFSC fund that receives the assets of the original fund in exchange for units.
The steps
- Set up the FME and the destination scheme.
- Obtain investor consents.
- Transfer the assets and wind up the origin vehicle.
- Confirm tax neutrality under the provision in force for the year.
Points that need care
- The 1961 Act relief was under section 47(viiad); confirm the corresponding provision under the 2025 Act.
- Exit steps in the origin jurisdiction.
A pension or long-term savings fund
A sponsor wants to run pension assets from GIFT IFSC.
The IFSCA (Pension Fund) Regulations, 2026, notified on 2 April 2026.
The steps
- Confirm eligibility under the new Regulations.
- Plan governance and investor protection.
- Register and launch.
Points that need care
- These Regulations are new; practice is still settling.
Portfolio Management
Portfolio management from GIFT City lets a manager run individual mandates for foreign and NRI clients in foreign currency, under IFSCA's framework.
The firm has written a six-part series on discretionary portfolio management from GIFT City, from the regulatory framework to distribution and tax.
A foreign wealth manager offering PMS from GIFT City
A manager abroad wants to run mandates for NRI and global clients from India.
PMS through a registered FME.
The steps
- Register the FME for portfolio management.
- Prepare client agreements and disclosure.
- Appoint a custodian.
Points that need care
- Minimum investment and client classification rules.
Marketing a GIFT PMS to clients in India
A manager wants to know whether it can approach Indian clients.
Distribution must fit both IFSCA rules and the Indian rules for residents.
The steps
- Identify the client categories that may be served.
- Check how solicitation of Indian residents is regulated.
- Plan compliant distribution.
Points that need care
- The firm's April 2026 article examines exactly this question.
Tax planning for a GIFT PMS
A manager wants to understand the tax position of the manager and its clients.
Section 147 for the manager; investor-level rules for clients.
The steps
- Confirm the manager's eligible income.
- Check client-level capital gains and treaty positions.
Points that need care
- Treaty access depends on each client's residence.
Talk to the firm about your plans.
A short note on what you are setting up is enough for a first conversation. No confidential information is needed at this stage.
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