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Family offices, particularly those abroad, are opting for Category-III alternative investment funds (AIFs) in GIFT City, instead of setting up family investment funds (FIFs) in the financial hub.
Last year, seven Indian family offices applied to establish FIFs in GIFT City. Two prominent offices secured in-principle approval from the GIFT City regulator. However, the FIF route for domestic family offices to make overseas investments has not been approved yet. Offshore entities are allowed to set up FIFs, but the option has not gained significant traction, said experts, who believe more incentives may be needed.
Industry players believe that recent amendments
