First investment advisor obtains SEBI licence in GIFT IFSC

Mumbai,  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. The company will provide advisory services for foreign investors including offshore funds.

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.”

SEBI had issued operating guidelines for Investment Advisers (IA) in IFSC on January 9 and further to that certain relaxations were provided via circular dated February 28.

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 $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.