India plans VCCs at GIFT City to boost global appeal
Business
India is looking to boost GIFT City's global appeal by introducing Variable Capital Companies (VCCs), a move inspired by financial hubs like Singapore.
VCCs will let multiple investment funds work under one roof, but with their assets and risks kept separate, making things safer and more flexible for everyone involved.
VCCs aimed at attracting major funds
This change aims to attract private equity, venture capital, and other big investment funds to GIFT City.
As Pallabi Ghosal from Trilegal puts it, VCCs match global standards and make it easier for international investors to bring their money into GIFT City without hassle.
Plus, unlike old trust-based setups, VCCs offer legal protection at the fund level, something institutional investors have been waiting for.