By Avinash Nair

Copyright thehindubusinessline

Tata Asset Management, which opened its branch in International Financial Services Centre (IFSC) on Thursday, said it is exploring opportunities to relocate $1.6 billion of its offshore funds from Mauritius and Luxembourg to GIFT City in Gujarat.

“I have $1.6 billion of funds overseas. Two funds are in Mauritius and one is in Luxembourg. We are convincing our clients — in Japan, Middle-east and Europe — to relocate these funds to GIFT City. We are already talking to them. This is an opportunity,” Abhinav Sharma, Head-International Business, Tata Asset Management Pvt Ltd, said during a visit to Ahmedabad.

“The regulator (International Financial Services Authority or IFSCA in GIFT City) gives a lot of exemptions if you relocate your offshore funds. There is about $800 billion of Indian equity that is parked in locations like Mauritius, Cayman Islands and Luxembourg. The government is incentivising us by giving us a GST waiver on our revenue. It is good for us and the cost of products will be cheaper,” he added.

Sharma said that the company was also ensuring that its investors also benefit from the move. “We have an advantage, but we will also have to ascertain and assess that our existing clients in the UK and Japan do not get taxed. We have to take third-party legal and taxation views. It is a long-drawn game, but it unlocks a lot of value for us and our clients. We will make a case and convince them (clients),” the official said.

When asked if the company has set a timeline for the relocation of its offshore funds, Sharma said the relocation will be a “12-18 month journey” and will follow the company’s launch of inbound and outbound products in GIFT City. “We wanted to start with a mass-product. There was a perception that GIFT IFSC offers HNI-only products. The minimum ticket-size of products being launched was $150,000 (about ₹1,32 crore). We are here to launch our retail product (having a minimum ticket size of $500) for which we got approval on Monday. The next product for us will be outbound funds and long-short funds. We have a large long-short product in India. We will replicate that for foreign investors,” he added.

Tata Asset Management has received an approval to launch a retail-focussed inbound feeder fund — Tata India Dynamic Equity Fund — at GIFT IFSC which will invest in mutual fund equity scheme and exchange traded funds. The fund, with a minimum investment ticket size of $500, will be open to foreign investors — both individual and entities — as well as NRIs and overseas citizens of India from jurisdictions compliant with Financial Action Task Force (FATF) standards. A major advantage for non-resident investors is the complete exemption from Indian taxes earned through the fund. Investors are only subject to taxation as per the laws of their country of residence, making this an exceedingly tax-efficient entry point to Indian equities.

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Published on September 18, 2025