IFSCA Approves India's First Foreign Family Investment Fund (FFIF) in GIFT City

What was decided

After nearly three years since the framework for setting up family investment funds (FIFs) was introduced by the IFSCA in GIFT City, a foreign family office — Poornam Asset Management IFSC, with roots in the United Kingdom — received approval from the regulator, becoming the first such registration as an FIF under the IFSCA (Fund Management) Regulations, 2025. The licence was granted on 20 April 2026, according to a regulatory official. IFSCA announced the registration of the first foreign Family Office as a Family Investment Fund under the IFSCA (Fund Management) Regulations, 2025, calling it a significant milestone in the growth of GIFT IFSC as an emerging global financial hub.

The regulatory background: what an FIF is and how the rules evolved

On April 19, 2022, IFSCA introduced the framework for Family Investment Funds under the IFSCA (Fund Management) Regulations, 2022. The IFSC funds regime envisages a Family Investment Fund as a self-managed fund set up in the IFSC for pooling money from a 'single family'; FIFs can be structured as companies, contributory trusts, LLPs or other IFSCA-permitted forms, can be close-ended or open-ended, and are permitted to invest in shares, securities, real estate, bullion and certain other assets.

IFSCA notified the IFSCA (Fund Management) Regulations, 2025 on 19 February 2025, replacing the 2022 rules. Among other changes, the categorisation for AIFs and Family Investment Funds was streamlined for better clarity under the 2025 rules. Separately, under the wider 2025 overhaul, the minimum corpus for non-retail schemes was reduced from USD 5 million to USD 3 million to support smaller-sized schemes. For FIFs specifically, industry commentary notes that a family investment fund can be open-ended or closed-ended, must maintain a minimum investment of USD 10 million within three years of registration, and can invest in financial products, securities, limited liability partnerships, and physical assets such as real estate, bullion, and art.

Who was approved, and on what basis

The approval went to Poornam Asset Management IFSC, reported Reuters, citing an official from GIFT City's financial regulator who was not authorised to speak publicly. Public filings show Poornam Asset Management has authorised capital of Rs 7m ($75,175.86); the company is led by Vineet Kulbandhu Sharma, who is based in London and also manages two funds located in Hong Kong and London. Company records show Poornam Asset Management (IFSC) Private Limited was incorporated on 19 December 2025 and is registered with the Registrar of Companies, Ahmedabad, with active status; its Corporate Identification Number is U66190GJ2025PTC170956.

IFSCA's own statement framed the approval in regulatory-development terms: "This registration highlights IFSCA's commitment to establishing a globally competitive and flexible regulatory ecosystem for foreign family offices and private wealth structures," IFSCA said.

Why domestic family offices are still waiting

The approval stands in contrast to unresolved applications from Indian family offices. In 2023, Catamaran Ventures and Premji Invest — family offices of N R Narayana Murthy and Azim Premji, respectively — had applied to the IFSCA to set up FIFs in GIFT City. While one of them had even received in-principle approval from the regulator, the registrations were on hold owing to the need for certain clarifications from the Reserve Bank of India, with concerns in cases where the source of funds was within India; the framework was clear only for cases where the source of the fund was outside India. As a result, several Indian family offices had inclined towards Alternative Investment Funds (AIFs) set up in GIFT City for global exposure instead. GIFT City is home to many banks, market intermediaries, and over 250 Alternative Investment Funds, showing its growing appeal for international finance even as the FIF route for domestic wealth remains stalled.

Practical effect for GIFT City

The IFSCA's approval of the first FFIF under its 2025 regulations validates GIFT City as a viable jurisdiction for family offices, alternative investment funds, cross-border estate planning, and global wealth structures, while introducing more flexible structures for private wealth management and cross-border investments, signalling increasing regulatory maturity. An IFSCA bulletin notes that, compared with Dubai, Mauritius, or Singapore, GIFT IFSC has lower living costs, rentals, and labor expenses, positioning it as a cost-effective base for family office operations. The licence comes as some wealthy Asian individuals look beyond Dubai amid geopolitical strains in the Gulf, adding a timing dimension to the decision. However, commentators caution that without clarity on the domestic side, GIFT City might serve mainly as a channel for foreign money instead of a complete platform for both Indian and international wealth management, which could harm its long-term goals and competitive position.