A newly formed association of chief financial officers (CFOs) of Indian private equity and venture capital funds is working alongside International Financial Services Centres Authority (IFSCA) to promote setting up new funds at the Gift City in Gujarat.
The association said it will work closely to provide feedback to IFSCA on operational issues and suggestions for resolving them to make it simpler for businesses to operate from Gift IFSC.
Over the past few months, several funds have been set up at GIFT City. For instance, Kotak Mahindra Group’s alternative asset arm Kotak Investment Advisors Ltd’s (KIAL) 13th real estate fund is domiciled in GIFT City.
Last month, the fund secured an anchor investment of $500 million from a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA). LGT Lightstone-backed Vivriti Asset Management and ASK group’s real estate investment arm have also set up their funds in Gift City.
The new association is to accelerate the establishment of PE/VC funds from Gift IFSC as well as address their operational pain points, it said in a press statement.
The association’s board recently discussed policy and operational issues related to funds being set up in Gift IFSC.
IFSCA chairman Injeti Srinivas had a discussion on initiatives taken for easing the set-up process for Indian fund managers exploring GIFT IFSC and regulatory changes done recently to make it an attractive destination for PE/VC funds.
Some of the matters that were discussed include a single integrated form for all approvals related to setting up in IFSCA, clarity around reporting norms for entities set up in Gift IFSC, and rationalising SEZ norms for funds and fund managers. Matters related to taxation and FME (fund management entities) regulations were also talked over.
Tapan Ray, managing director and group chief executive of GIFT City, discussed issues relating to SEZ (special economic zone) and funds operating therein. The executive has promised support to create frictionless pathways for funds to operate and invest from GIFT IFSC, PEVCCFOA ( Private Equity and Venture Capital CFO Association) said in a release.
PEVCCFOA aims to empower the CFOs to discharge their fiduciary responsibility and create greater value for the ecosystem. The organization claims that it promotes knowledge sharing, regulatory dialogues, forums and network formation in the field of private equity and venture capital investing.