The International Financial Services Centres Authority (IFSCA), the regulator of Gujarat International Finance Tec-City (GIFT City), is collaborating with the Reserve Bank of India (RBI) to streamline the path to prosperity for ultra high net worth individuals (HNIs). The IFSCA chairman has promised to provide clarity on family office structures for resident HNIs within the next 2-3 months.
GIFT City, located in Gandhinagar, is India’s first operational smart city and IFSC. It aims to be a global financial and business hub by offering world-class infrastructure and facilities. The collaboration between IFSCA and RBI will help smoothen the path for ultra HNIs by addressing regulatory challenges and providing a robust framework for their investments and wealth management activities.
Ultra HNIs are individuals with a net worth of over $50 million, and their number is rapidly growing in India. Family offices, which manage the investments, wealth, and affairs of these ultra HNIs and their families, play a crucial role in preserving and growing their wealth. However, the absence of clear regulations for family office structures has been a hurdle for many resident HNIs in India.
The IFSCA is working towards creating a conducive environment for resident HNIs in GIFT City by providing them with regulatory certainty. The aim is to attract more ultra HNIs to set up their family offices in GIFT City, which will contribute to its growth and development as an international financial center. By collaborating with the RBI, the IFSCA intends to address any regulatory obstacles and ensure that the path to prosperity for ultra HNIs becomes more streamlined and efficient.
The collaboration between IFSCA and RBI is a positive step towards establishing GIFT City as a preferred destination for ultra HNIs and their family offices. It will not only enhance the competitiveness of GIFT City but also boost the overall wealth management ecosystem in India. The clarity on family office structures promised by the IFSCA chairman will provide reassurance to resident HNIs and encourage them to explore the opportunities offered by GIFT City.
In conclusion, the collaboration between the IFSCA and RBI to streamline the path to prosperity for ultra high net worth individuals in GIFT City is a significant development. The clarity on family office structures will address regulatory challenges and provide resident HNIs with the confidence to establish their family offices in GIFT City. This collaboration will contribute to the growth and development of GIFT City as a global financial and business hub.
