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Family Offices Find Opportunity in Gift City

 1. Formalized Investment Management:

A Family Investment Fund (FIF) established within the Gift IFSC offers family offices a structured platform to oversee their investment funds. This arrangement enables family offices to establish a dedicated entity specifically geared towards managing their investment endeavors.

2. Definition and Scope:
FIF is characterized as a self-managed fund that pools resources from a single family. The term 'single family' encompasses Indian entities wherein the family exercises control and holds a minimum of 90% economic interest.

3. Investment Limits:
Entities can allocate up to 50% of their net worth into FIFs, surpassing the remittance cap for individuals under the liberalized remittance scheme.

4. Premier Players Enter:
Renowned billionaire Azim Premji's wealth fund has secured approval to establish a family investment fund within this financial enclave, showcasing early interest from prominent investors.

5. Regulatory Scrutiny:
However, the Reserve Bank of India (RBI) is scrutinizing the extent of control exerted by Indian residents over IFSC FIFs, citing potential conflicts with the Overseas Portfolio Investment (OPI) route. Consequently, several authorized banks have suspended FIF applications amidst regulatory deliberations.

The emergence of Family Investment Funds within the Gift IFSC signifies a novel avenue for family offices to streamline and fortify their investment management strategies. Yet, regulatory considerations loom large as authorities navigate the compatibility of domestic control dynamics within the global investment landscape

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