What’s Holding Back Indian Fund Managers From Raising Global Capital?

To expand globally, Indian fund managers will need the support of their historical bastions—the HNIs and family offices, and it falls upon the RBI to develop balanced solutions which enable Indian GPs to freely pool offshore from both Indian and offshore investors. This may entail placing repatriation requirements on individuals i.e., asking Indian individuals investing into offshore funds to repatriate, for example, 60% of their earnings (in exchange for the ability to freely invest within limits).

Similar balancing acts are also required for Indian investments into GIFT City, to truly set it apart from its global counterparts. Perhaps, in lieu of relaxed investment limits, GIFT funds may be similarly asked to invest a certain portion of their corpus within India.

Innovative solutions like these will truly place Indian GPs on the centre-stage and elevate domestic and offshore faith in GIFT City as a global funds jurisdiction. Towards this end, the RBI must continue treading on a multi-faceted footing, developing facilitative laws alongside regulators such as SEBI and the IFSCA.⁽⁴⁾ Downstream, it’s the Indian start-ups, founders, and Indian innovation which will benefit most.