Mumbai : To provide a level playing field to global and Indian fund managers operating from India’s only international financial services centre, IFSCA the regulator of GIFT City has come out with a third party fund management framework that allows licensed fund management entities to offer their platform to other budding entrepreneur fund managers to launch GIFT City regulated funds to niche investors while leveraging the existing infrastructure of larger FMEs.

The International Financial Services Centres Authority (IFSCA) recently introduced the Third-Party Fund Management Framework, allowing global and Indian fund managers to access a regulated platform in GIFT City without setting up a separate entity. This innovative framework enables Fund Management Entities (FMEs) to launch and manage Restricted Schemes on behalf of third-party fund managers, providing a cost-effective and scalable solution

“At IFSCA, the question we asked ourselves always is, how you can innovate, what are the different things that you can do. One of the advantages of IFSCA is the ability to tap international markets, bring in capital and be the hub for funds flows, we are also looking to be the hub for innovation, come up with innovative products for investors. Our idea of third party fund management services, or just colloquially honest platform play is a flexible and progressive platform for fund managers,” Pradeep Ramakrishnan, Executive Director, International Financial Services Centres Authority (IFSCA) said at a webinar organised and hosted by Artha Bharat Investment Managers IFSC LLP to raise awareness of this pioneering initiative by the regulator that aims to empower greater entrepreneurship amongst the Indian investment management community.

The webinar brought together industry leaders and regulatory experts to discuss the evolving landscape of third-party fund management services within the International Financial Services Centres Authority (IFSCA) framework and the expanding opportunities in GIFT City. It featured an eminent panel of speakers, including Sachin Sawrikar, Founder and Managing Partner, Artha Bharat; Pradeep Ramakrishnan, Executive Director, International Financial Services Centres Authority (IFSCA); Aditya Sarda, Dy. General Manager, IFSCA; Vivaik Sharma, Partner, Cyril Amarchand Mangaldas; and Rajesh M. Sharma, Executive Vice President and Head of Custody, HDFC Bank. Artha Bharat is the first FME licensed by the IFSCA to receive approval to offer third party fund management to eligible entrepreneur fund managers who want to set up their own GIFT City registered AIFs targeting domestic, NRI or foreign investors.

Speaking on this development, Sachin Sawrikar, Founder and Managing Partner, Artha Bharat Investment Managers IFSC LLP said, “The regulatory framework introduced by IFSCA is opening up a transformative opportunity for global fund managers looking to build a meaningful presence in India. With clear entry requirements, a strong governance architecture, and an enabling environment, the ecosystem supports both innovation and investor protection. GIFT City, in particular, has emerged as a world-class platform for fund management, offering operational efficiencies, tax advantages, and access to a rapidly expanding pool of international investors. As the landscape continues to evolve, we believe third-party fund management will play a pivotal role in deepening India’s integration with global financial markets.”

Discussion during the webinar provided a comprehensive overview of the third-party fund management landscape under the IFSCA framework, covering key regulatory requirements, financial obligations, operational considerations, compliance responsibilities and tax implications. Speakers also highlighted the rising attractiveness of GIFT City as a fund management hub, driven by a robust regulatory environment, increasing global investor interest, and significant tax efficiencies. Overall, the discussion underscored the immense potential for global fund managers to leverage the IFSCA’s progressive norms and the GIFT City ecosystem for scalable and sustainable growth.

Vivaik Sharma, Partner, Cyril Amarchand Mangaldas, said, “The third-party fund management option that has come in is a great opportunity for people who are in so far in the wait and watch mode and want to understand the GIFT City experience. The third-party fund management platform will really democratize and bring in the next wave of capital raise in GIFT City. We believe third-party fund management will cause the next wave of inflow of capital, as global fund managers probably approach fund management entities in GIFT City under the LRS route.”