Gift City
GIFT City’s International Financial Services Centre (IFSC) is India’s flagship global finance hub enabling fund managers to run cross-border funds from a regulated, tax-efficient platform. It now hosts retail and alternative fund structures, international currency management, and both Indian and global asset managers who have established IFSC branches to tap non-resident and institutional capital. The IFSC is governed by the International Financial Services Centres Authority (IFSCA) with fund-specific rules that aim to combine global best practices with India-centric access
Key Facts
Regulator & rules
IFSC funds are regulated by the IFSCA under Fund Management Regulations and related guidance — fund managers must register as Fund Management Entities (FMEs) to operate.
Scale & growth
As of mid-2025 the GIFT IFSC had ~177 fund management entities and 270+ funds, with the fund ecosystem projected to cross USD $100 billion by 2030.
Major AMCs / players (examples with IFSC presence)
Tata Asset Management (IFSC approval), SBI Funds (IFSC funds), HDFC AMC International (IFSC branch), Nippon India (IFSC branch), Edelweiss — all have IFSC operations or product pages for GIFT/IFSC funds. (These are representative; dozens of firms operate there.)
NRI / foreign participation
SEBI confirmed foreign/overseas fund rules that allow GIFT-IFSC funds to accept full investment from NRIs/OCs under specified disclosure rules — improving NRI access.
Recent regulatory guardrails
Regulators have introduced industry and AMC caps and tighter governance expectations on cross-border passive and active strategies to manage forex and market risk (example industry and AMC caps have been discussed
Fund types available at GIFT IFSC
A SIF can be tailored to different investor needs. Common structures include
Retail IFSC Funds (Fund Management Entity – Retail)
Similar to onshore retail mutual funds but aimed at international investors and NRIs
Alternative Investment Funds (AIFs)
Category I/II/III style AIFs formed under IFSC rules (private funds, VC, buyout, hedge-strategies).
Offshore / international funds & ETFs
Funds that operate in foreign currency and target cross-border distribution.
Why choose GIFT IFSC (benefits)
Regulatory clarity & global standards
Regulatory clarity & global standards via IFSCA
Currency flexibility
many funds operate and report in USD or other foreign currency.
NRI and non-resident investor access
SEBI guidance enables full NRI investments into certain IFSC funds with disclosure requirements.
Ecosystem & scale
Rapidly growing fund population and onshore/offshore marketplace
How to invest (practical steps for investors / NRIs)
Short list copy to use as steps/CTA:
-
- Identify IFSC-domiciled fund and check registration (IFSCA/AMC IFSC branch).
- KYC / documentation: NRIs may need passport, overseas address proof and tax identifiers; some funds will require additional investor disclosure if concentration thresholds are crossed.
- Subscribe through designated platforms / banks (many banks and IFSC platforms facilitate subscription).
- Currency & tax considerations: Funds may accept USD/foreign currency; tax treatment can differ from onshore Indian mutual funds — consult tax advisor.
Governance & compliance highlights (for transparency section)
- FMEs must register with IFSCA and follow fund governance and reporting standards; IFSCA recently updated its Fund Management Regulations to strengthen governance.
- SEBI and IFSCA coordination has introduced investor disclosure and market abuse prevention measures for IFSC funds
