Published in: Taxsutra
The IFSCA came into the picture primarily to transform GIFT City (Gujarat International Finance Tec-City) into a global hub for financial services. One of its key initiatives is the Third-Party Fund Management Framework (TFMS), which enables both international and Indian fund managers to enter GIFT City without setting up a separate entity.
In this article, CS Mufaddal Dalal (Secretarial Services, Affluence Advisory Pvt. Ltd.) dives deep into the necessity and benefits of TFMS, and states that an existing Fund Management Entity (FME) acts as a ‘host platform’, and a Third-Party Fund Manager (regulated in India or abroad) runs a fund scheme under that FME. The author sets forth the eligibility criteria for Third-Party Fund Managers, and outlines that FMEs remain fully responsible for all rules and liabilities, even if investment decisions are made by the Third-Party Manager.
