Gift City

A variable capital “company”, or “fund”?

Summary: This piece is an insight into a Singapore Variable Capital Company, its salient features, and relevance for varied stakeholders including family offices and start-ups.

Introduction

Singapore, now a well-established global asset and wealth management hub, has consistently attracted investments from different parts of the world. This achievement is the result of concerted efforts by the government of Singapore and its relevant limbs to nurture a stable, predictable, and business -friendly regulatory and legal ecosystem. Enforcement in both letter and spirit being one of the highlights for its preferential treatment when compared to its peers.Continue Reading A variable capital “company”, or “fund”?

GIFT-IFSC and LRS- Insurance Products for Resident Indians?

Background

In recent years, the Indian government has made significant strides toward enhancing the operational framework of the International Financial Services Centre at Gujarat International Finance Tec-City (“GIFT-IFSC”). GIFT-IFSC was established with an aim to redirect all financial transactions conducted by residents in foreign financial centres to India. By virtue of RBI circular[1] titled ‘Operational guidelines on International Financial Services Centre (IFSC)’ dated March 31, 2015, GIFT-IFSC is deemed as an offshore jurisdiction under the Foreign Exchange (Management) Act, 1999. However, due to the restrictive nature of the Liberalised Remittance Scheme (“LRS”), there were not many GIFT-IFSC products marketable to Indian residents. In order to cement the status of GIFT-IFSC as a viable financial centre for Indian residents and pursuant to feedback received from various stakeholders, the Reserve Bank of India (“RBI”) vide a circular dated July 10, 2024 (“LRS Circular”) permitted Indian residents to remit money to GIFT-IFSC for all permissible purposes under the Master Direction- Liberalised Remittance Scheme, 2016[2] (“LRS Master Direction”). Detailed analysis on the LRS Circular and its implications on GIFT-IFSC can be found here.Continue Reading GIFT-IFSC and LRS- Insurance Products for Resident Indians?

Fund structures are gaining popularity among wealthy individuals in India as optimum structures to help with wealth planning, investments, and tax management. Family offices are viewing GIFT City, India’s first international financial services centre (“IFSC”), for the purpose of facilitating global investments in a structured manner. Continue Reading IFSCA Relaxes Rules for Family Investment Funds in GIFT City