ANANDRATHI

Unit Secures In-Principle IFSCA Nod for Non-Retail Fund Management Entity at GIFT City, Gujarat.

wholly-owned subsidiary, Anand Rathi FME (IFSC) Private Limited, has received in-principle approval for registration as a Fund Management Entity (Non-Retail) at the IFSC in GIFT City, Gujarat. This follows the incorporation of the subsidiary in February 2026 with an initial capital of INR 100,000, aimed at undertaking fund management activities, particularly in AIFs and related portfolio management services under the IFSCA (Fund Management) Regulations, 2025. The approval positions the entity to manage non-retail funds through private placements, catering primarily to sophisticated investors such as NRIs, foreign investors, and eligible Indian residents seeking international diversification. It allows the company to offer tax-efficient structures (including potential benefits like zero capital gains tax for certain non-residents), global investment products, and third-party fund management services. This strengthens its wealth management franchise by tapping into cross-border opportunities, diversifying revenue streams beyond domestic distribution, and enhancing its appeal to high-net-worth clients. Regulatory processes in GIFT City involve stringent compliance, including net worth requirements (typically USD 500,000+ for Registered FME Non-Retail), fit-and-proper criteria, ongoing reporting, anti-money laundering norms, and potential SEZ approvals, which could increase operational costs and timelines before full-scale launch. Execution risks in building a new fund management vertical could also pressure short-term margins. In the near term, this is expected to positively influence Anand Rathi Wealth (ANANDRATHI) itself through enhanced growth prospects, potentially driving stock re-rating on higher valuations typical for wealth managers expanding offshore. Peers include &