GIFT City funds ask government to undo RBI’s foreign asset reporting mandate

RBI’s mandate for AIFs in GIFT IFSC to report foreign assets as resident Indians creates regulatory conflicts, threatening their offshore status. The AIF CFO Association urges government intervention to maintain GIFT City’s competitive edge and single-regulator model, warning of potential confusion and reduced appeal compared to other financial hubs. Rajul Bohra, partner at JSA Advocates and Solicitors, said, “The RBI’s clarification requiring IFSC units to make FLA filing could create a lot of chaos if not resolved. Since FEMA treats Gift City as non-resident Indian, the region has a lot of advantages that make it attractive. But if RBI, which helps implement FEMA, treats it as resident Indian for this purpose, then regulations get complicated.” Read more