What They Learned Running A Fund In Gift City

TITLE: What they learned running a fund in GIFT City? | Subtext by Zerodha CHANNEL: Markets by Zerodha DATE: 2026-04-15 ---TRANSCRIPT--- If I’m a retail investor, uh should I care about gift city today?

It’s a misnomer. Yeah. That gift city there is zero taxes. WhatsApp universities and everything they think that it’s taxfree. The gateway wasn’t really in the hands of India. It was more Dubai Malaysius. But one could say that gift city is probably the safest and most secure way now to invest into India. If you’re someone looking to invest from outside the country, onboard those NRI clients, it’s a very big hassle. Generally, the entire onboarding process takes anywhere between 30 to 45 days. Can happen as quick as in 2 days. Yeah. Hi everyone. Thank you folks at Philip Capital for doing this conversation with us. Before I start talking about gift city, why don’t you guys just briefly tell us what you do? What does Philip Capital do and how are you involved in Gift City slightly and then maybe we can just start talking about it. Sure. Thanks. Thanks Kashish for this opportunity. So just to maybe touch upon what Philip Capital is to start with that way of course we are a very large global Both. Yeah we are spread across 15 countries globally. We are headquartered out of Singapore and we are we had to our 50th in fact 50 plus years of operations globally. Here in India also we are into our 25th year of operations. Yeah. So that way very large global uh company into uh financial products and services. Yeah. uh you are in India of course we do a lot of business with institutional clients, HNI clients. Yeah. And to some extent to with retail clients as well. So my name is Nisha. I head the PMS desk out here at Philip Capital in India. I’ve been part of Philip Capital now for more than 10 plus years. So I have been heading the PMS desk overall look at the fund management part as well as far as the business is also concerned. I’m Ankosh. I’m part of Nishid’s team and of course I’ve been benefit property for the last 7 and 1/2 years now was uh part of the team of the PMS and the uh gift city. Help me understand why does gift city even exist? What problem is Gift City trying to solve that you know our existing financial system couldn’t so see gift city was the earlier the brainchild of Mr. Modi when he was the chief minister of Gujarat that was the earlier. So of course till now all of us have heard about Malaysia. So a lot of money foreign money that used to come into India that used to be through Malaysia, Singapore, Bermuda and all those offshore jurisdiction. Yeah. So we did not have any offshore financial kind of a jurisdiction here in India. So that was what Mr. Modi’s plan was when he was the chief minister of Gujarat. Of course when he became the prime minister this took more shape kind of a thing and that is where gift city came about. Of course gift city though technically it is in India it is between Ahmedabad and Gandhi but it’s an offshore jurisdiction. So it’s though basically technically it’s an SEZ kind of a thing. Yeah. So what happens there happens through a different regulator. So in the case of this city IFC is the regulator kind of a thing. Yeah. So it is an independent I would say a small city kind of a thing. Yeah. So basically the idea is that if money is going to be coming into India or maybe going outside India then we need to have a certain kind of a hold over it and that is where the entire idea about gift city came into place. Yeah. And since it was launched I think it has become very popular today. A lot of uh money that is coming into India or maybe going outside India as well. Yeah, of course it is more popular for money to come into India. Yeah, it is gaining a lot of popularity. I’ll ask a even dumber question. Why is it that money coming inside of India, outside of India can happen through you know institutions like NCBSC? Uh why is it that we need something in offshore? Why do we need that in the first place? So see basically when big foreign money that comes in they would want uh a hassle-free kind of an investment vehicle. Okay. So that’s why generally lot of money that used to come into India through FIS or FBI what we call them right now they used to use kind of countries such as Morishes or Singapore or Luxembourg because there in those jurisdiction have of course a certain kind of an advantage because you can do a lot of it offers a lot of flexibility. Second it also gives you a certain kind of a leeway as far as taxes are concerned. Yeah, it offers you a lot of to do multiple things under one registration. So that is what the main purpose of all this uh thing is. Of course, some of them became known as tax havens. But now of course, fortunately for all of us, all of them work on the similar kind of a tax kind of a structure. So it is no longer that uh maybe a Maicius or a Singapore has an advantage or a gift city or a gift city as an advantage of anyone else. Yeah. So all of of them they get taxed in the similar kind of a structure. Yeah. But a lot of large money that comes into they they’d like to come to a fund structure or so if they directly come into India they then they need to get registered individually and to get uh registered individually it’s a lot of paperwork a lot of assets. Yeah. So that’s why a platform or maybe uh kind of a regulator when it comes in between it offers them a lot of comfort. So uh Nishit or maybe Ankush you could help me understand. You talked about flexibility. One specific example that you gave was that for a foreign player to let’s say invest in India they’ll have to get themselves registered in India which isn’t as convenient. Can you give a few more examples which helps me solidify and understand why do we need uh something like city in the first place. So obviously tax havens maybe just drill down a bit how does the tax differ if let’s say we do it through offshore or let’s say if we do it through NSDBSC. How does that look like? Kashes let’s take an example of an individual investor he’s a foreign national now today if he wants to invest into India he decides to invest directly into India so he’ll first need to do a lot of paperwork first he’ll need to apply for a PAN card then he’ll need to be registered himself as an FBI have bank accounts here in India so it’s a lot of hassle now a foreign national or individual investor wanting to invest into India first he’ll think that why should I take a PAN card. Why should I start filing my tax return here in India? So suppose today if I want to invest into maybe US, I do not need to apply for a uh kind of a PAN card or maybe the local tax identification number out there or maybe so that is it’s a very big hassle kind of a thing. So that’s why they like to come through a fund structure or jurisdictions like this. So for them investing into India becomes quite simple. So uh let’s take an another example of an NRI coin. Okay. Now today an NRI client also wanting to invest into India. It becomes quite difficult because he’ll also have to have a uh PAN card, maybe an OCI card. He’ll need to open a savings bank account, a PIS account. Yeah. He’ll have to file for his returns and all those things. Yeah. Now with gift city kind of a structure, all this thing goes away. He does not need any of that. Onboarding becomes quite easy kind of a thing. So that is one of the big advantages of a structure like a gift city. So yeah all this entire hassle goes away. Second thing you spoke about taxes kind of a thing. Yeah. So taxation wise also again when you invest directly you have to file for your returns here in India. But when you invest through a fund out of G city the fund pays the taxes and all those things. Yeah. So as an individual investor you do not need to worry about taxation in India or in G city. Now the tax advantage that a foreign national or NRA have when they invest through one of this jurisdiction is if we are doing any derivative trades derivatives are not taxed kind of living. Yeah. So that is something how how we Indians have to pay any capital gain tax on derivatives as well. As a foreign investor you do not need to pay any taxes if you come to one of this jurisdiction. Other advantage is if you are investing into mutual funds to one of these jurisdiction then also the tax advantages there. So if say suppose if you invest as an NRI into in India okay you invest into a mutual fund unit you bought at 10 rupees NAB you sold at 12 rupees NAB a TDS gets deducted and you get the uh balance money of course you’ll have to maybe then show that why TDS should not be deducted and all those things but it’s an additional paperwork but when you invest through a jurisdiction like this the fund since it is taking care of it if you’re in there investing into mutual funds they will take care of the entire thing. So then you won’t be paying any capital gains as but again I think cash is more than the taxation I think it’s the ease of investing that is more important yeah rather than taxation again for taxation it keeps on changing so I would strongly suggest to always consult someone before you go ahead and make that investment decision so I for me taxation is not a very good so today everyone is sold on India story in fact NRIs Foreign nationals also know a lot about India story than we do. It’s just that the the vehicle for them to invest into India. So that way gift city makes that investment process very simple for them. Standardizes the number of people who we can actually approach NRIs maybe even foreign nationals in instances. Foreign nationals obviously if they don’t if they came through individual routes they would be having a very difficult time in terms of uh some countries may not have even been allowed to invest because of multiple gift city kind of standardizes everything and makes it a level playing ground. So say suppose I we are running a PMS almost 30% plus are of NRI clients. Yeah. No to onboard those NRI clients it it’s a very big hassle. Yeah. So generally the entire onboarding process takes anywhere between 30 to 45 days. There is no kind of lag from our side because the number of signatures are 50 60 signatures. Yeah. They have to open a bank account, a PS account, then a trading account, then a demat account and then finally a PM is come. Of course we handled the client throughout the journey. But if anything is going to take such a long time. Yeah. See, because 50 60 signatures, you’ve clearly marked it for the investors to sign, but then also they’re going to make maybe they’re going to miss out on something. Second time they might sign with a separate uh maybe a different thing. First time they sign with a blue pen. Second time they say sign with a black pen, the banks are going to reject the form. So it’s it’s a very big asset. Since we have launched a Philip India billion opportunities fund in gift city, onboarding of NRI clients has become very simple. Onboarding can happen as quick as in 2 days. So against 30 45 days onboarding here is almost like 2 to three days at max. Yeah. And very simple kind of documentation. Now a lot of second generation third generation guys they don’t have an OCI card. So to develop a link and if they want to open to come to the traditional route of NRO account yeah they need to have an OCI card and everything but in that is not the requirement. So uh honestly when I was reading up on it the first thing that Google threw me was it just makes everyone’s lives easier but I was unable to have a full grasp on what those words meant. Now that you gave examples right something as simple as a process of onboarding an NRI cutting short from 30 to 45 days to 2 days that is a lot of pain solved for folks like you who trying to solve and build wealth solutions for your clients abroad and also for them. So honestly that helps. Moving on, you mentioned about the regulator, right? Uh here the regulator is different. How do how are they different? What I’m primarily wanting to ask is key what’s the vision that they have? What’s the philosophy that they have? How do they differ from let’s say SEBI or RBI? How do they interact with them? Do they fall under SEBI or RBI’s perview or they’re totally separate? Just a bit on that as well so that I can better understand how is it being regulated. See unlike India wherein we have got different regulators for everything in G city we have got a unified regulator and they are very much forthcoming. Yeah they want to expand they want to make gift city very popular. So with with a lot of products and services they are very liberal they are also looking at global parlance in many ways kind of a thing and they’re getting a lot of new kind of uh regulations and products and services onto the city platform. So that way I think since it’s a single regulator it makes a a life a lot easier for operators like us as well. So that is one of the biggest advantage of course for an Indian resident who wants to maybe send money through G city of course for us and maybe an RBI comes into play because we are remitting money through the LRS structure but once you are in gift city it’s only a single decorator that you are interacting with and of course they have taken a lot of kind of influence from maybe what is already happening in India through SEBI RBI and all those things and they are very stringent as well. uh they don’t want a bad name for gift city. So till now I think they have done a fabulous job. Yeah. What what they have been able to achieve in such a short period of time. Yeah. We have seen a lot of local offices are setting up uh their accounts in G city. Yeah. We saw in between or heard about how maybe a large Abu Dhabi family office or maybe someone because of the recent Middle East crisis as well a lot of NRI clients have started opening bank accounts out there in gate as well. Yeah. So I think that way it’s there to grow. Yeah. See another very big advantage of gift city is cost. So today when you do say suppose if we try to do a fund structure in Mauritius or Singapore or maybe any the cost are very high. Okay. I’ll tell you the legal cost only rest all of us itself is very high. Today if you deal with a legal council in maybe Singapore or something. Yeah. therein they’re going to charge you in dollars because gift city is here in India your cost as a uh operator or maybe as a uh fund operator also becomes quite less kind of a thing. Yeah. So that is availability of skilled manpower is also quite easily available kind of a thing. Yeah. So these are all advantages of additional advantages of gift city. So if I understand it correctly and correct me if I’m wrong before gift city the way for anybody to bring money in India or outside of India the gateway wasn’t really in the hands of India it was more Dubai Mauritius but now with gift city we as Indian have more control over the gateway of capital flowing in and out therefore making everybody’s lives easier did I understand it correctly yeah perfect see gateway for incoming money I think they are very liberal okay it’s wherein outward kind of remittances that is there wherein they will have a proper gatekeeping activity. A lot of money was coming into India through different uh jurisdiction. So think of city as maybe a DFC of Dubai or a Singapore or a Maish. I think that way it makes a lot of sense. I think it’s developed also over the years that when we would have started we would have had to explain managers maybe possible lines of what gift city is and since it’s evolved and there’s been so much information especially by the regulator also there’s been so much awareness activity I think that hesitancy is not there because we’ve developed we’ve shown proof of concepts doing so many volumes across various products whether it’s inbound or outbound out I think Even foreign nationals are kind of more comfortable in terms of looking at Gibs. Got it. So now I’ll actually get into the nitty-g gritties of the workings of Gib City. And how I look at it is from two sides as you explained. Uh money coming in and money going out. Let’s talk about you know first money going out. So let’s say before let’s say Grip City obviously LRS limits still applied for GI city but let’s say preg era when money was supposed to go out how inconvenient was it? What was the process like? And now what has the process being replaced with? Obviously you mentioned the timelines have shortened right. If let’s say I am somebody who has enough disposable income and I want to have exposure to non-Indian equities per se. What was options for me before GIF city and now what what’s what what is it now? So see of course before GF city I think one of the easiest option for us earlier was the the local mutual fund roots wherein they used to invest into global funds. So it was a fund of fund kind of a structure. So wherein maybe you invest into a Hansang ETF or maybe a Mai Fang kind of an ETF or mutual fund units. I think that was where otherwise to invest into global securities was a slightly difficult activity until and unless you had large money. Then if you had large money then maybe you open an account in Singapore or maybe in Dubai or directly into US. But for smaller ticket size, it did not used to make a lot of sense kind of a thing because see again we are an M andC. So we used to do this before gift city as well wherein if one of our investors was wanting to invest into global securities, we used to take him to a Singapore kind of counterparts out there and help him open the accounts out there. Of course, it was still easier but it was generally meant for higher ticket sizes. Then of course we in between we had bought couple of Indianbased platforms which had a shaft toning arrangement and which were kind of easing this they providing this solution for Indians wanting to invest into global securities. Now with gift city coming in yeah so uh again what we have done at Philip Capital we are kind of offering access to US listed equities to our platform. So it becomes quite easy yeah to for you to transfer even small money and start uh investing to global securities. It has become very easy. So for even for smaller ticket sizes it now makes a lot of sense. Earlier it was maybe meant for larger ticket sizes clients maybe $100,000 $200,000. Yeah. But even now for maybe $5,000 or maybe $1,000 also you can do that. Adding on to what Nishu said is that there were not too many regulated asset management companies through India. Now you see of course Philip as a house has a global PMS. There’d be so many reputed asset management companies who set up their own vehicle investing into global security maybe directly into global securities maybe into a feeder fund and probably before that you would have to do it through Mauritius again which would be a very difficult task in terms of cost in terms of getting access now I believe it’s uh the ticket size is also affordable for investors in India looking to kind of take access it’s just about where they want to invest now the options are all there for everyone why don’t we just you know double double down on this feeder fund thing. I’ve seen AMC’s being very aggressive launching these feeder funds. So trying to understand how does it differ from I don’t know maybe typical NASDAQ FOF or S&P FOF that AMC’s were launching in India before this. How does the structure differ again operationally? Does this make the life of a fund manager or let’s say a wealth manager easier? How does that look like? So see of course the local funds that are there there are certain RBI limits which come up and that’s why as of now as we speak kind of a thing a lot of the funds are not accepting new money yeah because they already hit the RBI limit so then but as an investor you you want global exposure then you could invest through this market of course the LRS limits apply out there inducive LRS limits but I think those are quite lethal yeah $250,000 per pan card per year so then you can remmit money a lot of AMC’s as you rightly mentioned are starting with a feeder structure out there. Yeah. So you can invest small amounts as well and you start getting exposures kind of a thing. Yeah. So that way it is a much easier route as well and once you invest into dollars yeah because gift city your investments are going to be based in dollar. Now unfortunately India Indian currency is a depreciating currency. So on an average even if your money is there kind of a thing you just sitting you maybe let it be in a liquid fund or I I’m just giving an example kind of a thing then also on an average Indian currency depreciates by 3 to 4% of course last 15 months it’s been depreciating a lot kind of a thing so you get that advantage and plus of course you get a lot of advantage of participating into global equities kind of a thing as well a lot of fun so it’s just I think it’s just a start process I think we are going to see a lot more uh funds coming up out there feed structure wherein maybe you can have exposure to individual markets see in India we have got only ETFs Nifty50 ETF or Nifty 500 ETF we have got a very few thematic ETF like a banking ETF but globally there are so many that even if when you talk about artificial intelligence of course there would be an ETF on artificial intelligence but within AI also there would be so many of them kind of a thing yeah so I think then as we grow more funds keep coming up. be as a wealth manager or as an investor getting more kind of and another another thing is that the mutual fund road it would be more for retail individuals being paying smaller amounts where it’s for slightly more sophisticated investor obviously as the as the ecosystem evolves it will be open to a much smaller set of investors and kashes apart from feeder structures there are PMS we run a PMS there are afs which have come up so that way for again as we were saying that for HNI clients also there would be many more options kind of I think again so I still want to you know pick your brain on how does it operationally differ let’s say if I was investing in a Indian MF and they were on my behalf buying uh an S&P ETF which was something that happened you know I don’t know maybe pre gift city as well but now all these investments are being routed through gift how does that change the operations for a fund and life of a let’s say fund manager so for two I will take it up in two cases this as an investor of course when you invest into local funds yeah the mutual funds it’s very simple yeah you just kind of open up a new folio transfer maybe do an SIP it’s easy when you want to send money to gift city uh you have to actually remmit money kind of to gift city through LRS then the investment process journey is very simple similar kind of a thing now as a fund manager of course when when you do launch a fund in India there are certain rules and regulations that come up you convert put the fund from dollar to INR or from maybe from other some currency to INR then open it to local investors but there in G city you can keep it into the same kind of a thing so maybe costwise I don’t know how much difference it would make but my guess is it would be slightly cheaper if you run it out of gift city got it got it so again if you are investing through gift city I am kashish I’m trying to invest me transferring money to gift city will come with those LRS limits but once my money has reached a Gib city entity who’s investing abroad then the life becomes much easier compared to a domestic mutual fund folio where it works very similar to any other investment that we make and then how the money is being again translated from dollars to INRs and eventually returns being reflected in NAVS that’s a problem for the fund manager itself yeah of course got it now on the flip side you know we’ve talked about money going outside of India and the demand for dollar assets that’s proven for sure as you yourself mentioned that INR gets depreciated it makes sense to have that USD hedge as well. Totally makes sense. On the opposite side when we talk about you know money coming in India, my first question remains what are the key players in Gift City right now who have money coming in India. So is it usually global firms who have also set up their offices in Gift City? Is it domestic funds who are trying to get money in India? What does that look like? So today as we speak I think all the global banks and local uh fund houses are there present in gift city. Of course, the local fund houses are more kind of active as of now because they already have an NRI client base kind of a thing. Yeah. So that is why they are offering a hassle-free kind of an investment process for for them to onboard into India. Yeah. And I think that’s why they have been kind of more active out there on the fund side. Of course, there is everyone out there kind of a thing but it is the local. Of course, what I also understand is a lot of family office, global family offices has also started setting up accounts there in city. Yeah. Because of the global bands and everyone out there. See, today uh India story is quite popular and especially since the valuations are also corrected. I think it is much more become interesting kind of a thing. Until now of course this money was always going to come into India through some other kind of a structure. But now with gift city especially NIS are coming up in big numbers into India. So I would say that it is become it is one more vehicle but it has made that life simpler. Okay. And since the popularity is increasing kind of a thing it is going to increase kind of a thing over and I guess the structures which would be there in gift city to bring money would be through the alternative investment the AIF CAT 1 CAT 2 CAT 3 and we are doing specifically a CAT 3. Now I want to cherry pick your like nitpick your brain on the tax end of things currently and I want you to give me two examples of what does tax look like by taking an example of somebody and like an Indian investor who’s let’s say investing in a US stock. What does tax look like through a gift city route? What does tax look like outside of that? And does that give enough incentive for an individual investor like me to prefer the gift city route? I I think one thing uh first I would start like is it’s it’s a misnomer. Yeah, that gives city that is zero taxes. Mhm. So I think see the taxes are not there for the businesses for a certain period of time. So the other kind of taxes that is not there is GST. So whatever fees get levit to the client the management fee or anything there is no GST but when it comes to capital gain tax or maybe income tax still applies. Now let’s take an example for example Kashish you have invested into a gift city fund which invest into global securities. So whatever income is there you’ll have to report here in India and you will have to pay your capital gain taxes and income tax kind of a thing. So there there is no difference kind of a thing. So when you invest into a suppose a hang or ETF kind of a thing you’ll have to pay capital gain tax kind of a thing long-term short-term it will depend. Yes. So similarly when you invest into a fund in G city and there is a capital gains tax you’ll have to pay those taxes here in India. Yeah. So it is it is not that you don’t have to pay for tax. Let’s take an example of an NRI client investing directly into India. Okay. In this case what happen suppose for example he’s investing into stocks. So he’ll have to say suppose he invested 100 rupees in one particular stock. He sold that stock at 150 rupees. So what the bank will do? Yep. Because when you are investing directly in India, you’ll have to open a PS account with a bank. So the bank will deduct the TDS. For example, let’s take an example, it was a short-term capital gain tax. So on 50 rupees, 20% is the tax. The bank will be deducting 10 10 rupees and remitting back the 140 to the client. Now at the end of the year that particular client will have to file for his income tax here in India and say that okay I had to pay 10% capital short-term capital gain tax which has already been deducted and these are my certain other interest income and this is the tax filing that I am doing here. Okay so this is what an NRA investing into India directly now an NRI investing through a gift city fund in India. Now for him all the taxation would be at the fund level. So the fund would be paying the taxes here in India, the capital gain tax, whatever is there, long-term, short-term, the client does not need to file for any taxes here in India. The client will have to file for his taxes in the country that he’s originating from. For example, he is from Dubai that NRI in Dubai there is no income tax on global income. So he does not have to pay any taxes out there. But say for example he’s from US the short-term capital gain tax here in India is 20%. If the fund is also registered in US suppose our fund is we we have already taken a registration with SEC IRS and with individual states. So we will be able to provide him a caven statement and therein the tax in US is 25%. Then in that case he’ll have to pay a 5% difference. Yeah, in US but here in India that entire hassle of TDS filing for his return at the end of the year and everything goes away. The other big advantage Kash that is apart from the onboarding the taxation is reporting. Okay. See when a client is directly investing into India his reporting is going to be in INR terms. For example, an NR client invests into my PMS through an direct kind of a thing. So I am going to report in into INR terms that you invested 50 lakhs today your 50 lakh has become 60 lakhs. So your returns are 20%. But so we report in INR terms that 20% is your return. But for client he’ll say boss I transferred you the money when the dollar was 82 today it is 92. So my returns actually dollar returns are not 20%. Yeah dollar returns are maybe lesser than that. But when he invests through a gift city fund his reporting is in dollar terms. So it becomes much easier for him to track his investment as well. So so suppose the NAV that we publish for our Philip India billion opportunities fund it is post tax post expenses and in dollar terms. So it takes into the consideration the dollar appreciation as well. So for him it becomes very easy to uh monitor his performance that my 100 rupee NAV is today 115. So I made 15%. I think that that pretty much sums up everything I wanted to know, at least for the starters. I’m pretty sure there are so much more nuances around Gift City. Uh before we close, let me ask you a blunt question. If I’m a retail investor, uh should I care about Gift City today? If I’m a retail investor, let’s say, who can’t afford to invest a 50 lakh PMS ticket size, but who’s actively investing through mutual funds, should I care about gift city today? You see I always say this and SPG law Indian markets over last 18 20 months has proved this yeah that India is going to do very well but it is not a question of an or that I have to invest into India or global it is a question of an and so you have to do everything last 15 18 months global markets have done very well Indian markets have not done that and that’s why actually it has become more popular wealth managers also pushing it Japanese market have done so well yeah US even markets It’s they have surprisingly done very well. So you have to invest. Gift city offers you a very good investment kind of vehicle. Yeah, you can open a bank account there in Gift City as well. I will give you an example. Yeah, I will give you three reasons why one need to invest globally. One of course is dollar diversification. We spoke about the currency depreciation benefit. Second is global diversification. And third, there are many themes which are not available in India. So today artificial intelligence, cloud computing, medical devices, all these themes are not available in India. So that’s why you need to invest globally and GCP offers you that very good structure. Today you can open a bank account also out there, keep your assets in dollar terms as well and then invest globally, right? And for the retail investor obviously because the RBI limits have been breached for so many funds there are very few options where you can actually invest into the global market. So again if you have the ability to you can access gift city and then you can access these plethora of options apart from the benefits that you should bring again I think what is more important cases is you have to invest small question today because global markets are doing well you do not shift everything from India to global but that is what unfortunately sometime happens there kind of thing so you have to invest a portion of money and I think gift city that way the vehicle that is there I think it’s one of the best kind of take uh investment vehicles if you want to invest in global securities. I think the current markets as of today we’ve learned asset allocation a lot more than we should have. You always learn lesson. Okay. So one dumb question again but the industry limit for MFS to invest we’ve reached that and which is why a lot of fund inflows. A lot of MFS have stopped inflows into their schemes wherever they had international exposure right or they’re just cutting exposure there. That thing does not impact if the same AMC was setting up a fund in gift city. Yeah. It does not. Fair enough. Uh, okay. One last question before we wrap up and I expect both of you to give your separate answers. Since both of you have been interacting with clients on both sides, money coming in, money going out. What’s one thing that most people misunderstand about gift city and after having these conversations few things that have always popped up which has confused people about gift city and through this platform maybe you’d want to clarify that once and for all. uh I think taxation is one thing a lot of uh because sometimes uh of WhatsApp universities and everything they think that it’s taxree yeah so I think that is one misconception a lot of investors have kind of a thing as far as gift city is concerned uh but yeah otherwise I think there is no issues that we face when we talk about gift city in fact a lot of these guys know already about gift city both about inbound and outbound opportunities kind of a thing So that way I I think it’s just a start from here on it’s going to go up multiffold. And just to of course add on to Nishid’s taxation was one. Secondly, I think people used to because it was a evolving ecosystem. People would take time to kind of adapt to understand what it is. But one could say that gift city is probably the safest and most secure way now to invest into India if you’re someone looking to invest from outside the country which was not actually available. And now it’s a clear fact. People earlier used to take time to get kind of warmed up to the entire ecosystem. But one could say now why why do you say it’s a much safer and secure option from out for outsiders? How does it compare to and I’ve been meaning to ask this question but how does this compare to you know earlier structures that used to exist through Mauritius or Dubai? Because we have our independent regulator which we spoke about right who regulates all the activities of all the asset management companies wealth managers and the monicious route of course would be through various different kinds of roots here it’s this unified regulator who’s regulating all of the activities which safeguards all the investors regulates all the entities within it. Got it. And also on the tax front you mentioned how earlier it money used to come in through tax havens. First of all why were they called tax havens. what was the tax advantage there and when you said that due to WhatsApp university there’s misinformation that taxes don’t really apply here but that’s definitely not the case as you clarified earlier how does that compare to a gift city structure I think tax as I spoke earlier as well taxation is same everywhere say suppose an Indian investor investing into a Singapore fund or maybe a maicious fund he still have to file for his returns in India he has to file pay his taxes so there there is there is no way that you can escape this you know that you cannot escape two things death and taxes. Yeah. So yeah, so that is always there. So those countries were called as tax havens is because a lot of family office were also setting up their structures out there. So their incomes were global. They used to get those monies out there and then invest so kind of thing. They used to save on taxes but otherwise I don’t think there is an any issue. Today I think globally everyone all the countries have become quite strict. You we have got FATF as well. as soon as you do some kind of you get into a grrey list or a blacklist. So a lot of countries now don’t want to kind of get into all those things and each individual country is also asking for a lot of data. So if I am a individual who’s earning a decent salary in India uh and who wants to let’s say have an exposure outside uh this tax haven tag doesn’t really benefit me because I can’t evade those taxes regardless. No no absolutely I think that’s that’s all the questions I had. If there’s anything you think that I missed asking about gift city that would do justice to the audience, the floor is yours and then after that maybe we can wrap up. I think your question is okay. So yeah, we have covered most of the things. Perfect. Uh thank you so much for your time Nishid Ankush. It’s been a pleasure. Uh looking forward to do more of these. Thanks. Thanks. Thanks Kash for this uh very interactive session. Yeah, we look forward to doing more of the sessions. Yeah, thank you. Thank you.