Abu Dhabi/Mumbai : Sachin Sawrikar promoted Artha Bharat Investment Managers ME Limited, has been granted a Financial Services Permission (FSP) by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to expand its fund management business to a prominent, upcoming international financial services centre.
The FSP authorises the firm to manage collective investment funds and discretionary portfolios, advise on investments and credit, arrange deals in investments and arrange custody and credit, for professional and institutional clients.
The FSP by the ADGM FSRA is a key step in Artha Bharat’s global expansion plan as the GIFT City leader aims to build an international presence as part of its Lakshya $3 billion AUM target.
The FSP which is the final step after an in principle approval from the FSRA, extends Artha Bharat’s group’s regulated presence beyond GIFT City to one of the world’s leading international financial centres. In consonance with Artha Bharat’s recent expansion into a regulated and licensed operation in Mauritius, the ADGM FSP strengthens the group’s ability to offer hard currency investment solutions to institutional investors, family offices and professional Non Resident Indian (NRI) investors across the Middle East seeking access to Indian and global markets.
“An ADGM licence allows us to engage directly with sovereign wealth funds and institutional investors in the Middle East, who value working with managers regulated in a jurisdiction they know well,” said Sachin Sawrikar, Founder & Group CEO, Artha Bharat Investment Managers.
Expanding Access to Global and Indian Investment Opportunities
The first investment vehicle that Artha Bharat Investment Managers ME Limited plans to launch is the Artha Bharat ICC, an ADGM Incorporated Cell Company. Fashioned along the lines of variable capital companies or VCCs in Singapore, the ICC allows the launch of separate funds within the umbrella of the Artha Bharat ICC, structured as a separately incorporated cell. The structure of the ICC allows for quick launch of new schemes by having an umbrella prospectus and regulatory structure vetted by the regulator and fund specific provisos as per the prospectus of each fund. The ICC funds are planned to be structured as Exempt Funds, offered by private placement to eligible Professional Clients, with a minimum initial
subscription of USD 50,000.
Long Term Investment Opportunities for Indian Investors
“ADGM gives us a platform to bring our investment strategies to Indian investors seeking global portfolio diversification, in a structure built for long term compounding,” said Sawrikar.
According to Artha Bharat, an ADGM fund structure offers several advantages to resident Indian investors seeking global diversification and long term wealth creation.
Gains realised within the fund can be retained and reinvested, supporting long term compounding without each underlying transaction becoming a taxable event for the investor. Tax for the investor arises on distributions or on the sale or redemption of units.
“Under Indian tax law, units of an overseas fund investing primarily in equities qualify as long term capital assets when held for more than 24 months, with gains taxed at a base rate of 12.5% plus applicable surcharge and cess. This incentivises investors to take a medium to long term view of their overseas investments allowing a strategy to play out and deliver returns,” added Sawrikar.
International Growth
The Artha Bharat group manages over USD 800 million in assets across four funds. The Sachin Sawrikar promoted group is focussed on offering differentiated investment opportunities across asset classes and strategies to investors in India and overseas. The group operates from GIFT City, ADGM and Mauritius. ADGM gives Artha Bharat a regulated base in the UAE, home to one of the largest Indian communities outside India.
As demand for international diversification grows among Indian investors and NRIs, Artha Bharat’s ADGM platform will serve as a strategic gateway to Indian and global markets through internationally regulated investment solutions.
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