Axis Trustee becomes first trustee to start operations in GIFT IFSC

Axis Bank promoted Axis Trustee Services Limited has become the first trustee to start operations at Gujarat International Financial Tec-City (GIFT) City's International Financial Services Centre (IFSC). 

According to a statement by GIFT City, Axis Trustee will provide facility agency services to IFSC banking units for their ECB transactions and trusteeship services to alternate investment funds (AIFs). It may also offer escrow agency services for cross border M&A transactions. Axis Trustee will complete the ecosystem for fund business in GIFT IFSC.

The new venture at GIFT IFSC is getting operationalised after regulatory approvals. In November 2018, SEBI came out with regulatory framework for AIFs to set up operations in GIFT IFSC thereby opening doors for fund houses to consider GIFT as preferred destination and Trustee companies to offer trusteeship services for such AIFs.

Trustee operations are a key enabler for the eco-system as they provide key support for the growth of various businesses in IFSC, said Dipesh Shah , Head, IFSC, GIFT City. 

"With Axis Trustee one of the reputed entity setting base in GIFT IFSC it would help fund industry, banking and other key International financial services to set up base in GIFT. In coming days, we see a huge volume of transactions in the Trustee operations to take place from this centre," said Shah.

According to Sanjay Sinha, MD & CEO, Axis Trustee, operating a business from GIFT City tends to be cost efficient as against the high costs attached to maintaining overseas offices.

Further, the financial and fiscal incentives are also expected to add to the viability of businesses operating from GIFT. "Given the fund raising activities through Masala Bonds and Regulatory nod to AIFs to operate from GIFT City, we see a lot of opportunity in the trustee services space. External Commercial Borrowings (ECB) transactions being undertaken by banks located in GIFT City will also open up window for Facility Agency services to trustee companies. We thank GIFT City officials and SEBI for their support to our endeavor," said Sinha.