Higher limit in FPIs: NRI investments in Gift City off to a slow start

Industry participants note that while there is interest from NRIs and investors, some are reluctant to provide PAN and know-your-customer (KYC) details

The Securities and Exchange Board of India has permitted 100 per cent contribution from non-resident Indians (NRIs) and overseas citizens of India (OCIs) in the corpus of foreign portfolio investors (FPIs) based out of Gujarat International Finance Tec-City (GIFT City), the country’s international financial services centre (IFSC). However, the Indian diaspora is yet to fully warm up to this new route.

The regulator allowed this route to enhance the fund ecosystem at GIFT City and attract genuine investments from overseas Indians. Nonetheless, rules require the submission of permanent account number (PAN) for all NRIs and OCIs, along