At least half a dozen prominent family offices, including those backed by an automaker, an auto component manufacturer and an IT sector promoter, are exploring pooled structures that resemble Alternative Investment Funds (AIFs), source told Moneycontrol.
SFOs based in the International Financial Services Centre (IFSC) at GIFT City have not been able to send funds abroad due to a lack of regulatory clarity on whether such transactions fall under the Overseas Portfolio Investment (OPI) route or the Overseas Direct Investment (ODI) route. The confusion stems from the fact that money remitted from India to GIFT City is considered an ODI transaction, whereas family office investments in global assets are typically treated as OPI.
Link to full article – https://www.moneycontrol.com/news/business/family-offices-stitch-together-aif-structures-in-gift-city-to-bypass-overseas-investment-hurdles-13109859.html