Introduction
The concept of family office has gained prominence in India over the past 8-10 years, especially due to an increase in the number of the high net worth individuals (HNIs) who have started exploring the family office as one of most efficient and effective means for investment, wealth management and succession planning. In view of the growing interest of the HNIs and ultra HNIs in family offices in India as well as offshore countries, the expert committee constituted by the International Financial Services Centres Authority (IFSCA) recommended a separate regulatory regime and a favourable environment for Indian as well as foreign individuals so as to attract HNIs and ultra HNIs across the globe to set-up their family offices in International Financial Services Centres (IFSC). So far, Gujarat International Finance Tec-City (Gift City) has been recognised as the IFSC by the Indian government, and it is the sole operational IFSC in India.
The recommendations of the expert committee were considered by the IFSCA in IFSCA (Fund Management) Regulations, 2022 (Fund Regulations) which provide a separate framework for family offices in IFSC. The Fund Regulations allow setting up of family investment fund (FIF) in IFSC to act as self-managed fund for pooling money only from a single family. This article discusses some of the key aspects of the Fund Regulations related to, inter alia, structure, eligibility and investments options of FIFs established to act as single-family office(s) in IFSC.
