India’s new finance hub GIFT City gives first nod to rich to invest abroad

economictimes.indiatimes.com:

capital overseas, raising hope for the nation’s wealthy as they wait for clarifications from regulators to make similar moves.

Premji Invest has received an in-principle approval to set up a so-called family investment fund at Gujarat International Finance Tec-City, also known as GIFT City based in Prime Minister Narendra Modi’s home state, according to people familiar with the matter. Dozens of applications for FIFs that allow families to make investments across various asset classes and instruments offshore, are still pending, said the people, asking not to be identified discussing a private matter.

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Premji Invest and billionaire Narayana Murthy-backed Catamaran Ventures were among the first to seek approvals, according to the people.

Representatives for International Financial Services Centres Authority, which governs GIFT City, didn’t respond to requests for comment while a spokesman for Premji Invest declined to comment.

Like its neighbor China, India has placed strict controls on moving capital overseas. Resident Indians are allowed to remit $250,000 each year, including purchase of property, investment in shares and securities as well as setting up joint ventures or subsidiaries abroad. Touted by Modi’s government as a free market pilot, GIFT city aims to become a financial hub unhampered by rules and taxes.

Challenges of investing abroad

India’s rising wealth has spurred the growth of family offices and the demand for portfolio diversification. Many rich