Former Infosys CFO, T V Mohandas Pai has slammed the latest regulation that prevents local family offices from setting up investment funds in the Gujarat International Finance Tec-City (GIFT) in Gujarat’s Gandhinagar.
Taking to X (formerly Twitter), Pai said that the new regulation would hamper global investments in the country. He said that it will halt Family Investment Fund Applications which goes against the grain of the government's aspirations. He tagged PM Modi and his office to intervene in the post.
He also tagged the Union Finance Minister Nirmala Sitharaman and said that the latest regulation fails to respect honest tax payers. Pai said that the regulation will impact India's access to critical global technologies.
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Pai’s series of posts came as a reply to another X user Rajeev Mantri.
As per a Bloomberg report, the market regulators have stopped giving approvals to the local family offices to set up investment funds in GIFT City after feedback from RBI. The RBI said that easing capital controls may result in money laundering. The new guidelines aim to address issues related to capital controls and tax evasion. This would impact GIFT city to attract investments from overseas investors.
The report further said that FIFs provide an important source of business for GIFT city as financial hubs across the world, such as Singapore, Netherlands and London provide special frameworks for family investments. According to the experts interest in FIFs is growing as wealthy Indians are looking to invest overseas. By resolving the regulatory issues, it would ensure the investors choose Gift City over Singapore or London.
