Tata Asset Management, which recently inaugurated its branch at the International Financial Services Centre (IFSC), announced that it is considering relocating $1.6 billion of its offshore funds from Mauritius and Luxembourg to GIFT City in Gujarat. The Company’s International business head says relocation will be a ‘12-18-month journey’ and will follow the company’s launch of inbound and outbound products in GIFT City

The Asset Manager has also received an approval to launch a retail-focussed inbound feeder fund -- Tata India Dynamic Equity Fund -- at GIFT IFSC which will invest in mutual fund equity schemes and exchange traded funds.

“I have $1.6 billion of funds overseas. Two funds are in Mauritius and one is in Luxembourg. We are convincing our clients in Japan, Middle-east and Europe to relocate these funds to GIFT City. We are already talking to them. This is an opportunity,” Mr. Abhinav Sharma, Head-International Business, Tata Asset Management Pvt Ltd, said during a visit to Ahmedabad.

The regulator International Financial Services Centre Authority (or) IFSCA in GIFT City gives a lot of exemptions if you relocate your offshore funds. There is about $800 billion of Indian equity that is parked in locations like Mauritius, Cayman Islands and Luxembourg. The government is incentivising us by giving us a GST waiver on our revenue. It is good for us and the cost of products will be cheaper,” he added.