Tata Asset Management, which inaugurated its branch at the International Financial Services Centre (IFSC) on Thursday, is considering relocating $1.6 billion of its offshore funds from Mauritius and Luxembourg to GIFT City in Gujarat. Abhinav Sharma, Head of International Business at Tata Asset Management Pvt Ltd, indicated during a visit to Ahmedabad that the firm is actively engaging clients in Japan, the Middle East, and Europe to facilitate this transfer.
Sharma highlighted the benefits provided by the International Financial Services Authority (IFSCA) in GIFT City, which offers various regulatory exemptions for relocating offshore funds. He noted that approximately $800 billion of Indian equity is currently held in jurisdictions such as Mauritius, the Cayman Islands, and Luxembourg. The Indian government is promoting this initiative by offering a Goods and Services Tax (GST) waiver, making it economically advantageous.
The company is also focused on ensuring that its investors benefit from the move. Sharma stated, “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.”
When asked about a timeline for the relocation, Sharma noted that it would be a “12-18 month journey,” coinciding with the company’s launch of inbound and outbound products in GIFT City. Initially, there was a perception that GIFT IFSC catered exclusively to high-net-worth individuals, with minimum investment requirements set at $150,000 (around ₹1.32 crore). However, Tata Asset Management aims to launch a retail product with a minimum investment of $500, for which it recently received approval. Future offerings will likely include outbound funds and long-short funds, leveraging their existing capabilities in the Indian market.
The newly approved Tata India Dynamic Equity Fund will focus on mutual fund equity schemes and exchange-traded funds, targeting foreign investors—including individuals, entities, NRIs, and overseas citizens of India from countries compliant with Financial Action Task Force (FATF) standards. A significant advantage for non-resident investors is the complete exemption from Indian taxes on returns generated via the fund; taxation will only be subject to the laws of their respective countries of residence, making this an attractive entry point to Indian equities.
Published on September 18, 2025.
