PPFAS Alternate Asset Managers IFSC opens a new office at GIFT city

PPFAS Alternate Asset Managers IFSC, a wholly owned subsidiary of Parag Parikh Financial Advisory Services Limited, inaugurated its new office today at GIFT City (Gujarat International Finance Tec-City) in Gandhinagar, Gujarat. This new office will serve as the hub for the firm's global and domestic alternative investment offerings.

With the necessary infrastructure, team, and regulatory groundwork already established, the company is well-positioned to launch its inbound fund as soon as the regulatory approvals are obtained. Additionally, the firm will provide outbound fund structures and Portfolio Management Services (PMS) from its GIFT City base, according to a press release.

The inbound fund will be structured as a fund of funds (FoF) that serves as a feeder into the existing mutual fund scheme, the "Parag Parikh Flexicap Fund." It targets Non-Resident Indians (NRIs) and foreign nationals seeking exposure to Indian markets. Notably, investors in this fund will not need a PAN number, will not be required to open an NRO/NRE account, and will not need an FPI license. Repatriation of funds is unrestricted, as investments are made in US dollars, eliminating currency risk. According to the Income Tax Act, any gains from unit transfers of the fund are exempt from tax, and no TDS is deducted.

The outbound fund will allow resident Indian investors to utilize the Liberalised Remittance Scheme (LRS) limits, enabling them to remit US dollars for international investments. Since the Reserve Bank of India (RBI) limit for the asset management industry was exhausted in February 2022, there has been a strong demand from investors wanting to invest abroad. The details of this outbound scheme are currently being explored, and the firm will provide updates as the structure is finalized. it is crystallised.​