Kotak Mahindra Bank became the 1st bank to issue Foreign Portfolio Investments (FPI) license to an Alternate Investment Fund (AIF) incorporated in Gujarat International Finance Tec (GIFT) International Financial Services Centre (IFSC), after its issuance of FPI license on May 20, 2021, to the GIFT IFSC AIF of True Beacon Global.
- In partnership with Kotak Mahindra Bank, True Beacon launched its first AIF in GIFT-City with PricewaterhouseCoopers(PWC) as consultants.
Key points:
i.This was the first FPI license issued to an AIF in GIFT IFSC by any custodian bank or Designated Depository Participant in India.
ii.AIF became an important business vertical at GIFT IFSC as it will offer huge benefits and a competitive edge for setting up funds in IFSC at GIFT City.
Definitions:
i.FPI – It means the investments made by investors in financial assets, such as stocks and bonds of entities located in another country.
ii.Designated Depository Participant – It means a person who has been approved by Securities Exchange Board of India (SEBI) under FPI Regulations, 2014, to buy, sell or otherwise deal in securities as a foreign portfolio investor.
iii.AIF – It is a privately pooled investment vehicle that collects funds from sophisticated investors, whether Indian or foreign, for investing it by a defined investment policy for the benefit of its investors. There are 3 Categories in AIFs (Category I AIFs, Category II AIFs, and Category III AIFs).
Recent Related News:
On February 15, 2021, Kotak Mahindra Bank Ltd launched its outward forex remittance service, Kotak Remit. In an industry-first move, Kotak Remit is live on the Kotak Mobile Banking App. With this, the Kotak Mahindra Bank’s customers for the 1st time can transfer the money internationally to their beneficiaries from their mobile.
About Gujarat International Finance Tec-City Co. Ltd. (GIFT City):
Headquarters – Ahmedabad, Gujarat
MD and Group CEO – Tapan Ray
About True Beacon
Establishment – 2019
Headquarters – Bangalore, Karnataka
Co-founder and CEO– Richard Pattle
About Kotak Mahindra Bank:
It is India’s first non-banking finance company which is converted into a bank.
Establishment – 2003 (Kotak Mahindra Finance Ltd. was established in 1985, converted to Kotak Mahindra Bank in 2003)
Headquarters -Mumbai, Maharashtra
MD & CEO – Uday Kotak
Tagline – Let’s Make Money Simple
