Axis Trustee will provide Facility Agency services to IFSC banking units for their ECB transactions and trusteeship services to Alternate Investment Funds.
In yet another milestone moment for GIFT City – India’s first operational International Financial Services Centre (IFSC); Axis Trustee Services Limited (promoted by Axis Bank) became the first trustee to start operations at GIFT IFSC.
The new venture at GIFT IFSC is getting operationalized due to regular support provided by Ministry of Finance along with all regulators namely RBI, SEBI and IRDA.
Axis Trustee will provide Facility Agency services to IFSC banking units for their ECB transactions and trusteeship services to Alternate Investment Funds. It may also offer Escrow Agency services for cross border M&A transactions. It will complete the ecosystem for fund business in GIFT IFSC.
In November 2018, SEBI came out with regulatory framework for Alternative Investment Funds (AIFs) to set up operations in GIFT IFSC thereby opening doors for fund houses to consider GIFT as preferred destination and Trustee companies to offer trusteeship services for such AIFs.
Commenting on the development, Sanjay Sinha, MD & CEO, Axis Trustee said, “It is a historic moment for Axis Trustee to be the first trustee to start its operations from GIFT City. Given the high costs attached to maintaining overseas offices, it is cost efficient to operate business from GIFT City. Further, the financial and fiscal incentives are also expected to add to the viability of businesses operating from GIFT. Given the funds raising activities through Masala Bonds and Regulatory nod to AIFs to operate from GIFT City, we see a lot of opportunity in the trustee services space. External Commercial Borrowings (ECB) transactions being undertaken by banks located in GIFT City will also open up window for Facility Agency services to trustee companies. We thank GIFT City officials and SEBI for their support to our endeavour.”
Welcoming the commencement of Trustee operations in GIFT IFSC, Dipesh Shah – Head – IFSC, GIFT City added, “Trustee operations are key enabler for the eco-system as they provide key support for the growth of various businesses in IFSC. With Axis Trustee one of the reputed entity setting base in GIFT IFSC it would help fund industry, banking and other key International financial services to set up base in GIFT. In coming days, we see a huge volume of transactions in the Trustee operations to take place from this centre”.